How to Choose the Right Lender for Your Home Purchase

Securing financing is one of the most important steps in the home buying journey. Whether you're a first-time buyer or purchasing your second (or third!) property, the lender you choose will significantly impact your experience—financially and emotionally.

At Duncan Gals Real Estate, we work closely with buyers every day and know firsthand how important it is to find a lender who offers great rates, clear communication, and a smooth closing process. Here's a practical guide to help you make the best decision.

1. Understand Your Loan Options

Before choosing a lender, you’ll want to understand what types of loans are available to you. Common options include:

• Conventional Loans – Ideal for buyers with strong credit and at least a 5–20% down payment.

• FHA Loans – Great for first-time buyers with lower credit scores and smaller down payments.

• VA Loans – Available to qualified veterans, service members, and their spouses.

• USDA Loans – For buyers in eligible rural areas.

• Jumbo Loans – For properties that exceed conventional loan limits.

Knowing which loan best fits your situation will help you identify lenders that specialize in your type of financing.

2. Compare Interest Rates and Fees

Not all lenders offer the same rates, and even a small difference can cost or save you thousands over the life of your loan. When comparing lenders, ask for:

• Interest rate

• Annual Percentage Rate (APR)

• Origination fees

• Closing costs

• Discount points (optional fees to reduce your rate)

Be sure you’re comparing the full picture, not just the rate.

3. Ask for Recommendations

Real estate agents (like us!), friends, family, and neighbors are great resources when searching for a lender. Personal experience goes a long way, especially when it comes to communication and closing efficiency.

At Duncan Gals Real Estate, we have a network of trusted lenders in both Oklahoma and Colorado and are happy to connect you with someone we know will take great care of you.

4. Consider the Lender's Reputation and Service

A low rate won’t matter if the lender can’t close on time or doesn’t return your calls. Look for:

• Responsiveness

• Transparency

• Experience in your local market

• Ability to close quickly and smoothly

Don’t hesitate to check online reviews and testimonials.

5. Get Pre-Approved Before You Shop

Getting pre-approved for a mortgage shows sellers that you’re a serious buyer and gives you a clear idea of what you can afford. This also allows you to:

• Lock in an interest rate (in some cases)

• Speed up your offer process

• Avoid falling in love with a home outside your budget

Pro tip: Ask for a pre-approval letter that can be tailored to your offer amount, rather than always showing your maximum budget.

6. Ask the Right Questions

When interviewing lenders, here are a few important questions to ask:

• What type of loan do you recommend for me and why?

• What is your current turn time for closing?

• What documents will I need to provide?

• Are there any special programs I qualify for?

• What are the estimated total costs at closing?

A good lender will be transparent and walk you through every step.

7. Local vs. Online Lenders

There’s nothing wrong with online lenders—but local lenders often provide better service and accountability. They understand your market, have relationships with local agents and title companies, and are generally more accessible for in-person or quick conversations.

Let Us Help You Find the Perfect Lender

We know how overwhelming the home buying process can be—especially when it comes to financing. That’s why we always make it a priority to help our clients find trusted, experienced lenders who can get the job done right.

If you’re ready to start house hunting in Edmond, Oklahoma City, Arcadia, or even Aspen and the Roaring Fork Valley, let’s chat! We’ll help you build the right team to make your buying journey smooth from start to finish.