Many people assume they should get their mortgage through the bank where they have their checking or savings account. While your bank may be a great place for everyday banking, it doesn’t automatically mean it’s the best choice for your mortgage.
Why?
Every lender offers different:
- Loan programs
- Interest rates
- Closing costs
- Underwriting guidelines
- Down payment assistance programs
- Credit score requirements
- Processing and underwriting procedures
Just because you’ve banked with the same institution for years doesn’t mean they offer the loan program that’s best for your financial situation.
Should I Compare Other Lenders?
Absolutely.
Shopping for a mortgage is similar to shopping for insurance or a vehicle. Comparing your options can help you better understand what’s available and ensure you’re making an informed decision.
Does That Mean My Bank Isn’t a Good Choice?
Not at all.
If your bank offers the loan program, pricing, and service that best fit your needs, it may be an excellent choice.
The key is making your decision based on the financing options available—not simply because it’s where you have your checking or savings account.
My Advice
A mortgage is one of the largest financial decisions you’ll make. Before committing to a lender, take the time to compare your options, ask questions, and choose the lender that offers the loan program, service, and guidance that best fits your goals.
Remember, you’re free to choose the lender that’s right for you. Banking somewhere for years doesn’t obligate you to obtain your mortgage there.