Finding the right mortgage lender can feel overwhelming. With so many options, how do you know which one is best for you? The truth is that choosing the wrong lender could cost you thousands of dollars over the life of your loan.

The good news is that some lenders offer bonuses for choosing them. We’ll walk through four tips to help you score a $2,000 bonus and make sure you pick the mortgage lender that best fits your needs.

Why Should You Care About Choosing the Right Lender?

You likely want the most affordable monthly payment on your home loan. However, mortgage rates and fees vary significantly from one lender to another. If you don’t shop around, you could end up paying more than necessary.

Higher rates and fees could cost tens of thousands of dollars more over the years on a $250,000 loan. Ouch!

Additionally, some lenders offer perks for new customers. From discounted rates to cash bonuses, you could score $2,000 or more just for choosing the right company.

Let’s explore four ways to get bonuses and ensure you pick the best fit.

1.Ask About Special Offers for New Borrowers

The first step is simple: Ask potential lenders what specials they offer. Many companies offer incentives like rate discounts and cash bonuses to attract new business.

You may need to meet specific requirements to qualify, such as having a solid credit score or purchasing a particular home loan type. However, a brief conversation with loan officers can reveal if they have any deals that benefit you.

Some standard new borrower perks include:

● Cash bonuses – Usually $500 to $2,500 you get at closing

● Discount points – Lower your rate by paying less in upfront fees

● Rate locks – Lock a low rate for more extended periods, such as 90+ days

● Gift cards – Get a prepaid card you can use anywhere

2.Compare Total Loan Costs, Not Just Rates

Mortgages have several moving parts that impact affordability beyond the interest rate. When comparing lenders, look at the whole picture.

Some variables that influence total costs include:

● Origination fees – 1% to 6% of loan amount

● Discount points – Pay for rate reductions

● Application and underwriting fees

● Appraisal and credit report charges

● Title fees and recording costs

Crunching the numbers on total loan expenses – not just rates – can reveal opportunities to maximize savings.

3.Ask for Lender Credits

Another way some lenders provide borrower benefits is through lender credits. These credits let you finance closing costs into your loan balance rather than paying out of pocket.

Lender credits don’t lower your rate like discount points, but they make closing more affordable. You can use them in conjunction with other new borrower discounts and bonuses.

4.Work With a Mortgage Broker

Here’s an insider tip for quickly comparing multiple lenders at once: work with an independent mortgage broker. Brokers have access to a variety of loan options from different companies.

An experienced broker will explain available lender credits, new borrower specials, and critical variables to compare. They can also run the numbers to identify your best-fit lender based on costs and perks.

As your advisor, a broker may even be able to negotiate special incentives from lenders competing for your business. This saves you time from contacting companies one by one.

Final Thoughts

Finding the optimal mortgage for your situation takes some legwork upfront. However, understanding lender offers and total costs and working with a broker can pay off big time.

If lenders compete for your business, you may score a $2,000 cash bonus or more. That bonus could cover your closing expenses on a new home loan.

We hope these four tips will help you save money and earn bonuses. Let us know if you have any other questions!