4 Ways to Decrease Your Mortgage Lender Bond Costs

Find out these lesser known money saving tactics to lower your mortgage lender bond costs.

#1: Take Care of Any Personal Credit Issues

Your personal credit is the primary item that is used to determine your mortgage lender bond cost, so you will want to ensure to pay off items such as collections, judgments or liens. If you neglect any of these personal credit items, the surety company will interpret them as a negative reflection of how you handle your personal finances, business responsibilities and will view you as an increased surety credit risk. Keep in mind, a mortgage lender bond is a form of credit provided to you by the surety company which ensures you’ll be able to pay bond claims caused by not following laws and regulations. When claims are triggered on your bond, the surety company will pay them initially, but you’re responsible to pay the surety company back.

How to Get the Lowest Rates

#2: Work with a Suitable Bond Agency

Partnering with a large bond agency can lower your bond costs and increase your likelihood of getting approved, even with credit issues. Why? Larger bond agencies are able to negotiate with surety companies, allowing for flexible underwriting terms on behalf of clients with credit issues. In addition, only a few bond agencies can provide mortgage lender bond quotes instantly and approve bonds in-house, allowing for the fastest turnaround time possible; as the old saying goes, “time is money”. Larger bond agencies will also be able to provide larger surety credit limits, which translates to the ability to get bonded and operate as a mortgage lender nationwide if needed.

#3: Provide Strong Financials and Experience

Demonstrating that you run a profitable business with strong financials is an indication you’ll be able to pay any claims that you may cause on your mortgage lender bond, resulting in a lower surety credit risk. Proper industry experience also shows the surety company that you know how to operate a business that follows all laws and regulations, which decreases your potential for causing bond claims. Strong business financials and industry experience will lead to surety companies instilling faith in your business, resulting in lower mortgage lender bond costs.

#4: Become a U.S. Citizen

If you do not have U.S. citizenship, obtaining it will decrease your mortgage lender bond cost. If you apply for a surety bond without U.S. citizenship, the surety company automatically regards you as a high surety credit risk, as you have no physical ties to the U.S. which would keep you in the country to pay bond claims if they arise. With U.S. citizenship, you demonstrate your plan to operate a business within the U.S. for years to come.


Eric is an industry expert that specializes in taking complex surety concepts and explaining them in terms that make sense to the general public. He also manages the JW Surety Bonds website and works with various partners to help further educate the public on suretyship using various mediums.

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