15 Steps to Homeownership: 5.

Next Module: Step 6 – Finding the Right Lender

Course Title: The Power of Ownership™: Easy Steps to Smart Homebuying

STEP 6: Finding the Right Lender

COURSE OVERVIEW

While most buyers focus on the house, wise buyers also focus on who is financing it. Choosing the right lender can make a significant difference in your financial future. Step 6 of The Power of Ownership™ focuses on helping participants identify, evaluate, and partner with a lender who aligns with their goals, values, and budget.

From big banks and credit unions to mortgage brokers and online lenders, the lending landscape is vast. This module guides participants through comparing lender types, asking the right questions, reviewing loan estimate forms, and understanding how lenders earn money. Participants will learn to distinguish between interest rate and APR, recognize unnecessary fees, and secure favorable terms.

This step is about more than just money—it’s about trust, transparency, and long-term financial stewardship.

LEARNING OBJECTIVES

By the end of this step, participants will:

Understand the different types of mortgage lenders and how they operate.
Compare lenders based on service, speed, rates, and transparency.
Learn how to request and interpret a Loan Estimate (LE).
Identify fees that may be negotiable or excessive.
Ask strategic questions to evaluate lender trustworthiness.
Know where to find down payment assistance programs.

III. SCRIPTURAL FOUNDATION

Proverbs 22:7 (NIV) – “The rich rule over the poor, and the borrower is slave to the lender.”

This verse isn’t a condemnation of lending—it’s a warning to be wise about whom you borrow from and under what terms. Your lender becomes your financial partner for decades. Choose them wisely.

INSPIRATIONAL QUOTE

“A mortgage is a 15–30 year relationship—interview your lender like you would a lifelong business partner.” — Coach Greb

TYPES OF MORTGAGE LENDERS

Not all lenders are the same. Understanding the landscape helps you select the best fit for your needs.

Direct Lenders (Banks and Credit Unions)

Issue loans directly to borrowers
Typically offer in-house processing and underwriting
May have stricter criteria but offer relationship benefits

Mortgage Brokers

Shop multiple lenders on your behalf
Can offer a wider variety of products
May charge a broker fee

Online Mortgage Lenders

Streamlined digital process
Fast pre-approvals, competitive rates
Limited personal service

Portfolio Lenders

Keep loans in-house (don’t sell them to investors)
Offer flexible underwriting
Good for self-employed or non-traditional borrowers

LOAN ESTIMATES: WHAT TO REVIEW

A Loan Estimate (LE) is a standardized form showing what a loan will cost you.

Key Sections to Review:

Interest Rate – Cost of borrowing (does not include fees)
APR – True cost of the loan (includes fees + rate)
Loan Amount – Total principal
Monthly Payment – Principal + Interest + Escrow
Closing Costs – Origination fees, taxes, title, etc.
Prepayment Penalty – Ask if there is one

VII. QUESTIONS TO ASK YOUR LENDER

Being prepared during your lender interview builds confidence and uncovers important details. Consider these key questions:

What type of loan do you recommend for my situation and why?
What is the interest rate and APR on this loan?
What are your lender fees and third-party fees?
Do you offer rate locks, and for how long?
Do you offer grants or down payment assistance programs?
Will you sell my loan or service it in-house?

VIII. COMPARISON: LENDER A VS. LENDER B VS. LENDER C

Feature	Lender A	Lender B	Lender C
Interest Rate	6.1%	6.0%	5.9%
APR	6.5%	6.3%	6.2%
Loan Estimate Fee	$850	$1,200	$950
Closing Time	35 days	28 days	30 days
Offers DPA?	Yes	No	Yes

Result: Lender B has the fastest close, but Lender C offers the best combination of rate, cost, and DPA eligibility.

CASE STUDY: Jasmine’s Smart Choice

Jasmine, a first-time buyer and teacher, was pre-approved by her bank for a 6.3% interest loan with $1,400 in fees. On a friend’s advice, she compared three lenders. An online lender offered her 6.0% but charged $1,800 in origination. A credit union offered 5.95% with $900 in fees—and helped her qualify for a $5,000 teacher grant.

What She Did:

Compared Loan Estimates
Asked for fee breakdowns and rate lock options
Selected the credit union based on rate, fees, and service

Outcome: Jasmine closed with $6,500 in savings over the bank offer and used her grant for moving expenses.

DO’S AND DON’TS

✅ DO:

Shop at least three lenders
Ask for Loan Estimates in writing
Inquire about hidden and third-party fees
Use online reviews and referrals to vet lender reputation

❌ DON’T:

Accept the first quote without comparing
Be pressured into signing quickly
Overlook long-term implications of ARM loans
Forget to ask about discounts for good credit or occupation

PRACTICE EXERCISES
Lender Interview Worksheet

List 3 lenders you plan to contact
Prepare 5 questions you will ask
Track their responses, rates, and fees

Loan Estimate Comparison Table

Lender	Rate	APR	Fees	DPA Offered?	Notes

Reflection Prompt

What kind of service do I want from a lender?
How will I ensure I’m not overpaying for my loan?

XII. TEACHER’S MANUAL SNAPSHOT

Goals:

Help learners evaluate lender credibility
Teach them to break down and understand Loan Estimates
Reinforce wise borrowing through comparison and research

Tools Needed:

Sample Loan Estimate forms
Comparison charts
Lender question cards

Activities:

Roleplay: Lender and borrower Q&A
Small group lender comparisons
Group analysis of red flags in fake Loan Estimates

XIII. PARTICIPANT GUIDE SUMMARY

Includes:

Lender Interview Prep Sheet
Loan Estimate Analysis Tool
DPA Resource List

Assignment:

Contact 3 lenders this week
Request and compare Loan Estimates
Finalize lender interview notes and rankings

XIV. CONCLUSION

The lender you choose will be your partner in one of the biggest financial decisions of your life. Choose wisely. Don’t just chase a rate—seek understanding, clarity, and peace. Learn to ask, compare, and walk away if the terms don’t align with your mission.

Scripture Reminder: “Plans fail for lack of counsel, but with many advisers they succeed.” — Proverbs 15:22