Find a Local Mortgage Lender for a Home Loan or Refinance | Zillow (2024)

Find a mortgage lender on Zillow

Should I work with a mortgage lender or mortgage broker for a home loan?

When financing or refinancing a house, you will eventually make a transaction with a mortgage lender. A mortgage lender is the entity that directly lends you the money you need to purchase a home. A mortgage broker is an entity who works as a middleman between you and the lender. The mortgage broker may work with multiple lenders and have access to different loan products than a mortgage lender might. The broker can help you find the best rate and terms for your prospective mortgage.

Whether you decide to work with a mortgage lender or mortgage broker, make sure you understand the loan terms and fees that both a mortgage lender or mortgage broker charges to determine the best loan option for you.

How to find the best mortgage lender

The best lender for you will provide the type of loan you're looking for, whether purchase loan, refinance loan or HELOC, and they'll offer competitive rates to save you the most money possible.

• 1

  Prepare to work with a lender

  Strengthen your financial profile before contacting a mortgage lender. Monitor your credit score and improve it, if necessary. Maintain employment and income while saving for your down payment. Calculate your affordability to understand a loan amount within your budget. Lastly, check your readiness to acquire a home loan by getting pre-approved. The lender who pre-approves you does not need to be the lender you work with to fund your home loan.

• 2

  Shop lenders

  Improve the terms of your mortgage by shopping and comparing several lenders, local and national. Use our tool to find mortgage lender options. Simply enter the zip code of the area you're interested in buying a property, or the address of your home to find lenders for a second mortgage or refinance loan. Consider reaching out to at least three mortgage lenders before settling with one.

• 3

  Ask critical questions

  Don't just compare rates, interview your potential lenders before doing business.

  • How long does it typically take you to close a home loan? Is that average for the region?
  • What is your typical communication style; mostly email, phone call, text?
  • What is your loan origination fee? Typically, what percentage of your transactions are closing costs?
  • Which of your closing costs must be paid at closing, which can roll into the mortgage? Are you willing to waive or negotiate any fees, such as the administrative fees (recording fee, title search, etc.)?
  • Do you allow discount points?
  • What are your appraisal requirements?
  • What are your down payment requirements?
  • What are your credit score requirements?
  • Is there any circ*mstance where you would not return my earnest money deposit?
  • Can you send me a few references?

• 4

  Read lender reviews

  Before working with a lender, read online lender reviews on Zillow's Mortgage Lender Directory. Search for the lenders on the web and contact their references.

• 5

  Compare loan estimates

  After connecting with your prospective mortgage lenders, understanding their business style and reputation, it's time to focus on the numbers. Apply for a mortgage with your front-running mortgage lenders to receive an official Loan Estimate. Compare Loan Estimates from each lender to evaluate the best mortgage rates or refinance rates. Evaluate the total closing costs from each mortgage lender and contrast credits, insurance and total interest charged over the life of each loan. Read the fine print. Check for prepayment penalties or other requirements that may not suit your circ*mstances.

  Choose the best mortgage lender for you by comparing rates, terms, experience and professional etiquette.

Types of mortgage lenders

Find retail and consumer direct mortgage lenders on Zillow's mortgage marketplace. Instead of scrubbing lender profiles for their business models, use Zillow to discover lenders. You can then find a lender who can provide a loan for your customized needs.

Most lenders are categorized based on the way they acquire or fund mortgages, and how they handle them after closing.

Here is a breakdown of mortgage lenders:

Mortgage bankers: These lenders package and fund loans with their own funds or borrow money from other lenders to originate loans. After closing, they typically sell the loans on a secondary market to investors or agencies such as Fannie Mae and Freddie Mac.

Retail lenders: These lenders offer mortgages directly to consumers. Your bank or credit union is a good example of a retail lender. Most mortgage bankers can also be considered retail lenders.

Consumer direct lenders: Direct lenders originate loans themselves. They can be mortgage bankers, portfolio lenders or correspondent lenders. Consumer direct lenders specialize only in mortgages, as opposed to retail lenders who might offer other consumer banking services, like checking accounts.

Portfolio lenders: They use their own money to issue the mortgage, which provides more flexibility. Portfolio lenders do not sell their loan portfolios to investors or agencies such as Fannie Mae or Freddie Mac. Community banks, credit unions and savings and loan companies can all be portfolio lenders.

Correspondent lenders: These lenders originate, underwrite, and fund their own mortgage loans. After closing, the loan is sold to another investor.

Wholesale lenders: They provide loans through third parties like mortgage brokers, but they don't work directly with consumers. They usually sell the loans after they close.

Hard money lenders: These are private companies who offer mortgages. Their loans often have large origination fees and high interest rates. These short-term loans are popular among home flippers, as they're faster to acquire.

Frequently asked questions

• Will I get a ton of unwanted phone calls from multiple lenders after searching for a lender on Zillow?

• Is my information secure?

• Why should I use this website to find a lender?

• Is it cheaper to get a mortgage through a mortgage broker?

• Does it matter which lender I choose?