The Top 5 Things Buyers Look For in a Lender

Takeaway

When you shop for a mortgage lender, what matters most is simple: keep your costs low, pick someone you trust, and make sure they can actually deliver the loan you need. Comparing more than one lender almost always saves you money.

What Buyers Care About Most

Low Cost: Rates & Fees

The top priority for most buyers is cost. That means not just the interest rate, but also the fees and closing costs. The problem? Most people don’t shop around. A study found that 71% of borrowers apply to just one lender. That’s a missed chance to save. According to NerdWallet, even two quotes can save $600 a year, while four quotes could save you $1,200. Freddie Mac research shows just one extra quote can shave thousands off your total loan cost.

Trust & Reputation

Borrowers often stick with who they know. A CFPB study found that 42% of buyers value an existing banking relationship, 41% care about reputation, and 40% want a local branch they can walk into. Comfort matters, especially when you’re signing up for such a big financial commitment.

Customer Experience

Price isn’t the only thing that matters. A report by McKinsey shows first-time buyers often value service even more than rate. They want fast pre-approval (ideally within 24 hours), one point of contact, and accurate processing. Repeat buyers lean more on price and speed, but still expect smooth service. Oliver Wyman also ranks customer experience alongside cost as the two biggest factors.

Convenience & Communication

First-time buyers especially look for an easy application process, quick status updates, and clear communication from their lender. McKinsey research shows these “ease of use” factors can make the difference between a stressful and a smooth home-buying experience.

Loan Type & Lender Fit

Not every lender offers every loan. FHA, VA, jumbo, or special loans for self-employed borrowers may be limited to certain banks or credit unions. If you’re looking at something non-standard, you need a lender with the right expertise. NerdWallet and Bankrate note that this is often the deciding factor for buyers with unique needs.

The Bottom Line

Research confirms it: cost and service dominate the decision. But borrowers leave money on the table when they don’t compare lenders. Even one extra quote can make a huge difference.