Choosing a lender - whats the difference?

Question

Hi folks!

Looking to purchase a new home in Nevada and I am curious about the lending portion of the process.

What is the difference between lenders? It seems like they all offer similar rates, similar processes and timelines - how do I decide who to go with? Forgive me if I'm hurting feelings but it seems like a lender is providing a commodity, so no real difference between them.

Outside of fee's what else should I be looking for or asking about when shopping lenders?

My agent referred me to someone, but I want to make sure I do my homework.

Edit: This is for a conventional loan. My paperwork is not complicated - first time home buyer, single source of income, strong credit.

Thanks you

Kyle J. · Answer

Interest rate and fees (including all the junk fees) are things you definitely want to look at when comparing lenders, but something people often overlook is the ability to actually close a loan.

I've read so many posts on here from people who get to the final stretch just before closing and their internet lender (who no ones ever heard of before but promised them the lowest rate) couldn't close the loan because they overlooked something (i.e. small detail that was previously disclosed by the borrower, property type didn't qualify for the loan they had applied for, etc) and the loan was going to fall through with no time to reapply with another lender before the contract expired.

Some times the cheapest rate just isn't worth it if the lender can't actually close the loan, and you're better off going with someone you know (from prior experience, referrals, etc) can get you to the finish line without any hiccups.

Just my two cents.