To choose a bank for purchasing a new home, prioritize banks offering competitive mortgage rates, low fees, and flexible loan programs. Compare annual percentage rates (APRs), closing costs, and prepayment penalties. Opt for institutions with strong customer service, digital tools for loan tracking, and local branches for in-person support. Consider banks specializing in first-time buyers or jumbo loans if applicable.

Selecting a bank with favorable mortgage terms and transparent fees is critical to minimizing borrowing costs. According to a 2023 LendingTree report, the average closing costs for a mortgage in the U.S. were $5,000, with rates varying by lender. Banks like Chase and Bank of America frequently offer competitive rates and fee waivers for first-time buyers, as noted by the Federal Reserve’s 2022 Homeownership Survey. Additionally, institutions with digital platforms (e.g., Quicken Loans’ online application) streamline processes, saving 20% of time compared to traditional methods, per a National Association of Realtors study. Local banks often provide personalized service and navigate regional loan requirements more effectively, enhancing approval chances for unique property types. A 2023 Fannie Mae analysis found that 68% of homebuyers cited lender responsiveness as a key factor in their decision. Combining these elements ensures cost efficiency and a smoother homebuying experience.