--- title: "How to Shop for the Best Mortgage Rate: Tips & Questions to Ask" description: How do you get the best rate on a mortgage? Here is a look at how to shop for mortgage rates with actionable tips and questions to ask a home loan lender. image: https://www.undividedre.com/hubfs/BestBankforMortgage_hero.jpg --- [Skip to main content](https://www.undividedre.com/blog/the-secret-to-finding-the-best-bank-for-a-mortgage#main-content) [![Logo](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/undivided.png)](https://www.undividedre.com/) - [Home](https://www.undividedre.com/) - [About Us](https://www.undividedre.com/about-us) - Advisory Buying Selling - [Neighborhoods](https://www.undividedre.com/neighborhood) - [Value Index](https://www.undividedre.com/value-index) Contacts 175 Greenwich St, 38th Flr New York, NY 10007 [hello@undividedre.com](mailto:hello@undividedre.com) [+1.646.631.2220](tel:+16466312220) ![Youtube](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/youtube.png) ![Instagram](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/instagram.png) ![Linkedin](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/linkedin.png) [Book a strategy call](https://www.undividedre.com/schedule-an-appointment) [Book a strategy call](https://www.undividedre.com/schedule-an-appointment) [All posts](https://www.undividedre.com/blog/all) June 3, 2025 # The SECRET To Finding the Best Bank for a Mortgage   Admin  ·  4 minute read Buying a home is a big commitment that can have lasting impacts on your financial future for years to come. Yet despite it being such an important decision, far too many people neglect to do the appropriate research when securing financing.  Pick the wrong bank or mortgage lender, and you could end up paying six figures or more over the life of your loan. But finding a mortgage lender that's right for your situation will help you save big and sleep better at night. In this guide, we'll show you exactly how to pick a mortgage lender that's right for you so you feel confident that you’re getting the best possible deal.      #### What to Consider Before Shopping for a Home Loan Finding the best place to obtain a home loan begins with understanding the various types of lenders available and the reasons for choosing one over another. If one grocery store charged you $12 for milk...and the place across the street sold it for $4, what would you do? You would walk across the street, right? It sounds like a no-brainer. But when it comes to choosing a lender, most people don't shop around. They simply go with the first bank that comes to mind. However, not knowing how to choose a mortgage provider can ultimately cost you tens of thousands of dollars over time. In order to know how to find a lender for a home loan, you should determine: 1. Which banks and lenders offer the most competitive rates right now 2. Which lender is right for you based on your income, credit score, and employment situation 3. The key differences between banks, credit unions, and mortgage brokers The best place for a home loan can vary depending on you and your financial goals. Therefore, it's essential to carefully consider your options and understand what is available before selecting a mortgage lender. Here are a few actionable tips to make the process easier.   ![ A city skyline with glass buildings featuring logos from Citi Group, HSBC, Barclays, State Street and other big banks](https://www.undividedre.com/hs-fs/hubfs/Big%20Banks.jpg?width=1200&height=669&name=Big%20Banks.jpg) #### 8 Tips For Choosing the Right Mortgage Lender   ##### 1. Don't Assume Big Banks Have the Best Rates It’s a common misconception that big banks are automatically the best mortgage lenders. Sure, they're familiar. But familiar doesn't mean affordable. The truth is, big banks often have higher rates, more red tape, and less flexibility than you think. So don't just default to your usual spot when shopping for a mortgage loan because it feels easy. You could miss out on a great deal by failing to explore all your options.   ##### 2. Always Shop Around You wouldn't buy the first car you test drive, right? Then, you shouldn't just go with the first lender that offers you a pre-approval.  The[Consumer Financial Protection Bureau](https://www.consumerfinance.gov/owning-a-home/explore/contact-multiple-lenders/) recommends that you reach out to at least two or three lenders and compare them side by side. Use a[loan estimate form](https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/tila-respa-integrated-disclosures/forms-samples/) when mortgage rate shopping to compare apples to apples. Even if two lenders offer you the same rate, the closing costs could be wildly different. So, make sure you know what you're looking at and how it will affect your pockets in the long run.   ##### 3. Mortgage Brokers Can Sometimes Beat the Banks Many people believe that going directly to the lender is the most sensible option. But in many cases, mortgage brokers can get you a better deal. Brokers have access to wholesale rates and a wide range of reputable mortgage lenders you may not have considered.  Especially if you have a non-traditional income, a unique property, or you want someone to shop around *for* you, brokers can help you find a mortgage company that best fits your criteria, making them well worth looking into.   ![A friendly mortgage broker with glasses shaking hands with a client ](https://www.undividedre.com/hs-fs/hubfs/Mortgage%20Brokers.jpg?width=1200&height=800&name=Mortgage%20Brokers.jpg) ##### 4. Credit Unions Are a Hidden Gem Credit unions are often overlooked, but they can be a great option for the right type of borrower. They're smaller and also more relationship-focused. In many cases, they also offer better rates and lower fees, especially if you're a W2 employee and have solid credit. According to the[National Credit Union Administration](https://ncua.gov/analysis/cuso-economic-data/credit-union-bank-rates/credit-union-and-bank-rates-2024-q4), in Q4 of 2024, the average interest rate for a 30-year fixed-rate mortgage offered by credit unions was 6.73%, compared to the 6.84% offered by banks. The difference may seem small, but it can quickly add up over the life of the loan. So don't sleep on credit unions when shopping for mortgage rates.   ![A close up view of a sign for a credit union, taken from below ](https://www.undividedre.com/hs-fs/hubfs/Credit%20Union.jpg?width=1200&height=800&name=Credit%20Union.jpg) ##### 5. Non-Traditional Financing Is Worth Exploring For certain types of borrowers, non-traditional financing can be a lifesaver. You may have a harder time getting approved with a good rate from a bank or credit union if you aren't a traditional employee with W2's and other documentation to prove steady income. If you're self-employed, an investor, or looking for something unique, consider bank statement loans, interest-only loans, or asset-based financing. These non-traditional lenders think outside the box, and sometimes, that's exactly what you need to get the deal done.   ##### 6. The Best Lender for You Depends on Your Profile There's no one-size-fits-all approach to choosing the right lender. It all comes down to who you are and what you're looking to buy. *Q: Are you a salaried employee with perfect credit?* A: You may be able to secure great terms from a credit union or even a national bank. *Q: Are you self-employed or have multiple streams of income?* A: A broker or portfolio lender might be your best bet. So, if you want to know how to pick a lender, match them to your reality, not someone else's.  Everyone's situation is unique, and it’s crucial to find the best lender for your specific circumstances if you want to secure the best rate.    ##### 7. Ask the Right Questions Knowing the right mortgage loan questions to ask is half the battle. Don't just ask, "What's the rate?". Go a bit deeper so you know what you're getting yourself into. Questions to ask a home loan lender: - What's the APR? - What are the total closing costs? - Can they close in under 30 days? - Is the pre-approval fully underwritten or just a soft pull? The answers will tell you far more than a shiny rate quote.   ##### 8. Don't Just Focus on the Rates It's easy to get hung up on the numbers. While rates are certainly important, you want to consider the bigger picture. Look at the full loan package. That includes the service, flexibility, communication, and speed. Sometimes, a slightly higher rate is actually the better deal because it comes with lower fees or better execution. Knowing how to shop for the best mortgage rates requires considering all relevant factors and not getting too hung up on the rate itself. Now that you know how to pick a home loan lender that works for you, you're well on your way to getting a good rate. But knowing the basics of rate shopping is one thing. Using that knowledge to secure financing and get a great deal on a home is where the hard work starts. That’s where Undivided can help. ## Ready to Get Started? [Schedule Your Free Consultation](https://www.undividedre.com/schedule-an-appointment) ### Here's what you'll get: ✓ Curated Listings We handpick properties that fit you, saving you time by showing homes that match what you want. ✓ Luxury Amenities We highlight top-tier amenities so your new home delivers the prestige and quality you expect. ✓ Market insights We provide detailed market comps and insights to guide your decision-making with confidence and clarity. Share: ### Related posts #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/williamsburg_in_brooklyn_ny_vs_brooklyn_heights_-_100185_-_30121_geAbDTbnk.jpg) BUYERS & SELLERS Williamsburg in Brooklyn, NY vs Brooklyn Heights](https://www.undividedre.com/blog/williamsburg-in-brooklyn-vs-brooklyn-heights) #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/williamsburg_in_brooklyn_ny_vs_dumbo__brooklyn_-_100185_-_30120_AVlvwhQrZ-1.jpg) BUYERS & SELLERS Williamsburg vs. Dumbo, Brooklyn, NY: Cost & Culture](https://www.undividedre.com/blog/williamsburg-in-brooklyn-vs-dumbo-brooklyn) #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/hospitals_in_williamsburg_in_brooklyn_ny_-_100185_-_26700_06vSuceNq-1.jpg) BUYERS & SELLERS Hospitals in Williamsburg, Brooklyn, NY: Full List](https://www.undividedre.com/blog/hospitals-in-williamsburg-in-brooklyn) #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/utilities_in_williamsburg_in_brooklyn_ny_-_100185_-_26699_Lw3VDFtXP-1.jpg) BUYERS & SELLERS Utilities in Williamsburg in Brooklyn, NY: Average Costs](https://www.undividedre.com/blog/utilities-in-williamsburg-in-brooklyn) #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/weather_patterns_in_williamsburg_in_brooklyn_ny_-_100185_-_26698_SQEd1LVlJ-1.jpg) BUYERS & SELLERS Weather in Williamsburg in Brooklyn, NY: Season Guide](https://www.undividedre.com/blog/weather-williamsburg-in-brooklyn) #### [![](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/history_of_williamsburg_in_brooklyn_ny_-_100185_-_26694_Tz-FrsHGX-1.jpg) BUYERS & SELLERS History of Williamsburg in Brooklyn, NY: Farm to Arts Hub](https://www.undividedre.com/blog/williamsburg-in-brooklyn-history) ![Background](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/footer/background.jpg) Begin the Conversation [Schedule a 30-min strategy call](https://www.undividedre.com/schedule-an-appointment) Links - [Home page](https://www.undividedre.com) - [About Us](https://www.undividedre.com/about-us) - [Services](https://www.undividedre.com/buy) - [Market Insights](https://www.undividedre.com/blog) - [Rental Process](https://www.undividedre.com/rental-process) - [Contact](https://www.undividedre.com/schedule-an-appointment) Contact Us 136 Madison Ave, 6th Fl New York, NY 10016   hello@undividedre.com +1.646.631.2220 ![Youtube](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/youtube.png) [(opens in new tab)](https://www.youtube.com/@undividedaccess) ![Instagram](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/instagram.png) [(opens in new tab)](https://www.instagram.com/undividedrealestate/) ![Linkedin](//44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/hero/linkedin.png) [(opens in new tab)](https://www.linkedin.com/company/undividedre) [![Undivided](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/footer/logo.png)](https://www.undividedre.com/) UNDIVIDED INC. IS A LICENSED REAL ESTATE BROKERAGE [FAIR HOUSING NOTICE (opens in new tab)](https://www.undividedre.com/hubfs/nys-housing-and-anti-discrimination-notice_02.2025.pdf) [PRIVACY POLICY (opens in new tab)](https://www.undividedre.com/privacypolicy) [UNDIVIDED STANDARD OPERATING PROCEDURE (opens in new tab)](https://www.undividedre.com/hubfs/Legal/Undivided-Standard-Operating-Procedure_8-2025.pdf) ![Copyright](https://44624939.fs1.hubspotusercontent-na1.net/hubfs/44624939/raw_assets/public/undivided-theme-by-tam/images/modules/footer/copyright.png) EQUAL OPPORTUNITY HOUSING. NO GUARANTEE, WARRANTY OR REPRESENTATION OF ANY KIND IS MADE REGARDING THE COMPLETENESS OR ACCURACY OF DESCRIPTIONS OR MEASUREMENT (INCLUDING SQUARE FOOTAGE MEASUREMENTS AND PROPERTY CONDITION), SUCH SHOULD BE INDEPENDENTLY VERIFIED, AND UNDIVIDED EXPRESSLY DISCLAIMS ANY LIABILITY IN CONNECTION THEREWITH. NO FINANCIAL OR LEGAL ADVICE PROVIDED. THIS INFORMATION IS NOT VERIFIED FOR AUTHENTICITY OR ACCURACY AND IS NOT GUARANTEED AND MAY NOT REFLECT ALL REAL ESTATE ACTIVITY IN THE MARKET. UNDIVIDED IS COMMITTED TO DIGITAL ACCESSIBILITY. IF YOU EXPERIENCE ANY DIFFICULTY USING THE SITE, PLEASE CONTACT ACCESS@UNDIVIDEDRE.COM. COPYRIGHT ©2026 RLS DATA BY UNDIVIDED INC. ALL RIGHTS RESERVED. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Admin", "url" : "https://www.undividedre.com/blog/author/admin" }, "dateModified" : "2026-06-18T16:27:20.114Z", "datePublished" : "2025-06-03T18:54:40.000Z", "headline" : "How to Shop for the Best Mortgage Rate: Tips & Questions to Ask", "image" : [ "https://www.undividedre.com/hubfs/BestBankforMortgage_hero.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.undividedre.com/blog/the-secret-to-finding-the-best-bank-for-a-mortgage", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.undividedre.com/hubfs/UD%20LOGO_WHITE_300.png" } } } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "about" : { "@type" : "Thing", "description" : "The process of evaluating and selecting the right bank, credit union, mortgage broker, or non-traditional lender for a home loan based on borrower profile, rates, fees, and loan execution.", "name" : "Choosing a Mortgage Lender" }, "articleSection" : "Real Estate Advice", "author" : { "@type" : "Person", "name" : "Admin", "url" : "https://www.undividedre.com/blog/author/admin" }, "dateModified" : "2025-06-03", "datePublished" : "2025-06-03", "description" : "An eight-tip guide to choosing the right mortgage lender, covering how to compare banks, credit unions, mortgage brokers, and non-traditional lenders based on borrower profile, rates, closing costs, and loan execution.", "hasPart" : [ { "@type" : "WebPageElement", "description" : "Large banks are often perceived as the default mortgage option, but they frequently carry higher rates, more red tape, and less flexibility than credit unions, brokers, or portfolio lenders.", "name" : "Don't Assume Big Banks Have the Best Rates" }, { "@type" : "WebPageElement", "description" : "The Consumer Financial Protection Bureau recommends contacting at least two or three lenders and comparing loan estimates side by side. Even identical rates can carry significantly different closing costs, making direct comparison essential.", "name" : "Always Shop Around" }, { "@type" : "WebPageElement", "description" : "Mortgage brokers have access to wholesale rates and a broad network of lenders, making them particularly valuable for borrowers with non-traditional income, unique properties, or complex financial situations.", "name" : "Mortgage Brokers Can Sometimes Beat the Banks" }, { "@type" : "WebPageElement", "description" : "Credit unions offer more competitive rates and lower fees than banks, especially for W2 employees with strong credit. In Q4 2024, the average 30-year fixed rate at credit unions was 6.73% versus 6.84% at banks, according to the National Credit Union Administration.", "name" : "Credit Unions Are a Hidden Gem" }, { "@type" : "WebPageElement", "description" : "Self-employed borrowers, investors, and those without standard W2 documentation may benefit from bank statement loans, interest-only loans, or asset-based financing offered by non-traditional lenders.", "name" : "Non-Traditional Financing Is Worth Exploring" }, { "@type" : "WebPageElement", "description" : "Salaried employees with strong credit may get the best terms from credit unions or national banks. Self-employed borrowers or those with multiple income streams are often better served by brokers or portfolio lenders.", "name" : "The Best Lender for You Depends on Your Profile" }, { "@type" : "WebPageElement", "description" : "Borrowers should ask lenders for the APR, total closing costs, whether they can close in under 30 days, and whether the pre-approval is fully underwritten or based on a soft credit pull.", "name" : "Ask the Right Questions" }, { "@type" : "WebPageElement", "description" : "The best mortgage deal considers the full loan package including service quality, flexibility, communication, and execution speed. A slightly higher rate with lower fees or faster closing can be more advantageous than the lowest quoted rate.", "name" : "Don't Just Focus on the Rates" } ], "headline" : "The SECRET To Finding the Best Bank for a Mortgage", "mainEntityOfPage" : { "@id" : "https://www.undividedre.com/blog/the-secret-to-finding-the-best-bank-for-a-mortgage", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.undividedre.com/hubfs/UD%20LOGO_WHITE_300.png" }, "name" : "Undivided Real Estate", "url" : "https://www.undividedre.com" }, "timeRequired" : "PT4M" } ```