How to pick a mortgage lender in Detroit
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Picking a mortgage lender is one of the biggest decisions you'll make when buying a house, and it's a complex one.
Why it matters: Who you trust with this major investment affects everything from your rate and closing costs to the speed of closing and how satisfied you are at the end.
- Mortgage providers' offerings and borrowers' needs differ widely, so there's no one-size-fits-all approach.
State of play: Detroit can be a tough market to navigate, especially for first-time buyers.
- The city has an older housing stock, investors paying cash, and a complex web of assistance programs.
We asked two experts for local tips:
📚 Study a lot: Take a HUD-approved first-time homebuyer class. They're recommended even if you aren't required to take one through a down payment assistance program, says Jamila Trent, housing counselor at Central Detroit Christian Community Development.
- "A lot of people don't even know what they're getting into, and by the time they finish … they're like, 'Oh my God, we didn't consider this,'" Trent says.
- Understand your finances and determine which type of loan works for you.
✅ Check eligibility: Assistance programs can be complicated, says Lauren Molnar, mortgage market leader at CHN Housing Partners.
- The Detroit Housing Network can help first-time homebuyers understand what they're eligible for.
🛍️ Shop around, but not too much: Check rates, costs and overall offerings with three or four different lenders, but don't overwhelm yourself with a dozen.
- If you already have a relationship with a bank, credit union or community services provider, both Trent and Molnar advise starting there.
- Shop around within a 45-day window. Credit checks from mortgage lenders are typically a small hit to your credit, but within that window, multiple checks are recorded as one so you don't take multiple hits.
🤔 Big or small? Smaller providers can be more knowledgeable of the Detroit market and more flexible with things like credit scores. But big banks are getting better and less rigid, says Trent.
- "I wouldn't discount a large bank, because within large banks, there are specific loan officers who are local to the market," Molnar says.
- She suggests seeking out local employees instead of relying on call centers.
🤝 Emphasize trust and responsiveness: Choose your partners wisely, says Trent. If someone doesn't respond quickly or doesn't like you asking too many questions, those are red flags.
- "It can be tedious, or it can be smooth sailing," Trent says. "It all depends on your team."