Shop Your Lender
Believe it or not, your real estate agent can be a good source for finding a good lender. The real estate agent has probably worked with Many lenders through his daily activities. With a lot of exposure to several different lenders, the real estate agent learns a few things about the lenders that can help you. Things that matter when I recommend a lender include:
Is the Lender straight forward and honest to my clients?
Is the Lender competitive with rates and fees?
Does the Lender do what they say they will, and can they get things done to close on time?
Does the Lender keep in constant contact with me and my clients?
Does the Lender treat people with respect, and maintain their integrity?
If a Lender can live up to my expectations as a real estate agent, then I feel ok referring them out to my clients. Afterall, it's my name on the line if I give out a bad referral, and I am unwilling to risk my reputation by referring an unknown Lender.
All that being said, I would suggest you shop your lender in this way...
You probably have a Lender that you would be willing to use, or a friend of yours may refer one to you. Go to your own lender and get their opinion on what you want to do, what it will cost, what rates, what time frame things can happen, etc. Check in to one or two lenders from your own sources, and then ask your real estate agent who he would recommend. Compare the lenders by how they treat you, what they are offering you in costs, fees, and loan amount, and then make your own judgement on which lender you feel best about.
Your lender may be better than the lender your real estate agent recommends, and by comparing in this way you should be able to learn that pretty quickly. But keep in mind that your real estate agent could be a great source for you because of his constant exposure to Lenders and the housing market.