Honestly, I’ve seen folks chase that “lowest rate” like it’s the holy grail, but then get blindsided by junk fees or terrible service. It’s wild. I’d rather pay a bit more for a lender who actually answers their phone when things get weird. Peace of mind is underrated.
I’d rather pay a bit more for a lender who actually answers their phone when things get weird. Peace of mind is underrated.
Couldn’t agree more. Here’s how I usually break it down for folks:
1. Look past the headline rate. Sometimes that “lowest” rate comes with origination fees, prepayment penalties, or even points you didn’t expect.
2. Ask about communication. If you can’t get a straight answer during the quote process, it won’t get better once you’re under contract.
3. Check reviews, but also ask around. Word of mouth is gold—especially for first-timers.
4. Don’t ignore smaller local lenders or credit unions. They can surprise you with flexibility and personal service.
I’ve seen people save a few bucks upfront and then spend weeks stressed out because their lender ghosted them right before closing. Not worth it, in my book.
Totally get where you’re coming from. I can’t tell you how many times I’ve had clients come to me mid-transaction, panicked because their “super cheap” online lender suddenly stopped responding. That’s when the stress really ramps up—especially if you’re a first-timer and everything already feels overwhelming.
One thing I’d add to your list: ask lenders what their average closing times are and how they handle last-minute hiccups. Some of the big online outfits will promise lightning-fast closings, but if there’s even a tiny issue (like a missing document or a weird title thing), it can take days just to get a real person on the line. Smaller local shops might not have all the fancy tech, but they’ll usually go to bat for you when things get weird. I’ve seen loan officers drive to a client’s work to pick up paperwork just to keep things moving—try getting that from a call center.
Also, don’t be afraid to ask for a fee worksheet upfront. It’s not just about the rate; it’s about what you’re actually paying at the end of the day. Some lenders bake in “junk fees” that aren’t obvious until you’re knee-deep in paperwork. If something doesn’t make sense, push back. A good lender will walk you through every line item without getting defensive.
I do think online reviews help, but take them with a grain of salt—sometimes they reflect stuff outside the lender’s control (like appraiser delays). If you know anyone who’s bought recently, pick their brain about who they used and whether they’d do it again.
At the end of the day, peace of mind is worth a lot more than shaving off a tenth of a percent. The process is stressful enough without having to chase down your lender every time you have a question.
