How NOT to Choose a Lender or Broker

Here are a few mistakes to avoid when selecting your lender.

Even if you think you've found the perfect lender and the perfect loan, call a couple more lenders and figure out what they have to offer. The worst-case scenario is that you confirm your good impression of your first candidate.

If you have a relative who you could trust as a competent lender or broker, keep them as an option. Don't assume you'll be getting an unbeatable deal just because you're working with Cousin Oliver. Compare him to other lenders to make sure he's as good as he claims, and be clear about your expectations around service and pricing.

Every lender or broker has at least one story about a client who spent every waking hour checking and rechecking and re-rechecking every available rate from every available lender on the planet we call Earth.

Rates and fees are important, but you also want to make sure you find a competent, trustworthy lender who will be there when something unexpected pops up during closing. If you've found that lender, don't change horses just to save a couple hundred bucks.

If you have doubts about your lender, act on them early in the process. If you're at the final stages of closing, you're better off staying put, unless you suspect that your lender is incompetent, unethical, or is costing you hundreds of dollars more than you need to spend.