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Getting that good deal? Out of town Lenders Is 50/50!

By Eric Bouler

Real Estate Agent with Gardner Realtors, Licensed in La.

September 02, 2007 05:16 AM

You have to be very careful as a buyer as to the lender you choose. I would always reccommned an local lender over someone from out of town. They have talk a good game but it usually in the actions. I had a listings go the ssale this week from an out of town lender. It was 4 days late closing. Everystep was late. The buyer got charged $460 for an appraisal for a condo form an appraiser who had never been to the area. A normal cost is $350 in this market. It took 4 days to get completed, 4 more days to review by an underwritter in Oklahoma.

The loan officer who was in Austin, Texas missed his fees by over a $1,000 and his taxes by $3,000. They thought they knew it all and would not ask the closing company for answers. Getting ready to close on Monday and the lender who was from Ca. had blackballed the title insurance company that the closing attorney was using. Another delay to get a waiver. The purchaser still had unanswered questions at the table and about $5,000 in fees. I could not determine what kind a deal he got but he got poor service and a lot of running around.

If you stay local, the people have to work with you and your agent again and actually care about getting the loan closed on time. I have since done a page on my website to outline the normal costs for the area. Closing costs in New Orleans for a condo so people can get some ideas. We did close and a nightmare repeated itself for far to many times. I do have good closing on 50% of the out of towners but far from the 95% of the locals where everything is in house. Closing Cost for a Condo

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Jason Sardi

Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC

Your Agent for Life

I understand the mentality Eric, but I don't think proximity necessarily equates to competence.

Sep 02, 2007 05:32 AM

Eric Bouler

Gardner Realtors, Licensed in La. - New Orleans, LA

Listening to your Needs

You cannot argue with numbers,do the math. More often than not the long distance loans are trouble for more reasons as well. If they bat 50/50 with me, is your average better. B of A and USSA have been the exceptions.

Sep 02, 2007 05:38 AM

It's entirely up to you with whom you prefer to work Eric. For me, I've done loans all across Pa. I've closed commercial deals in Tennessee. Closing a loan in Pittsburgh is just as easy as closing one here in the Valley. Communication is key on any transaction. I've had problems working some loans in the past and probably will in the future, in hindsight a lot of those are communication driven. I'm not aware of the numbers or statistics with the 50/50 deal you mention, I'm curious as to what they are.

Sep 02, 2007 06:12 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Eric.... I definitely know what you are talking about. I agree partially. But I also agree with Jason. It comes down to your preference. There have been local lenders in my area that have dropped the ball. We are talking withing 15 miles. It comes down to the loan officer.

I live and work in south Jersey. I am closing a loan next week, a purchase outside the Daytona Beach, Florida area. I am also closing a loan in the Pocono's in PA, which is about 4 hours away from me. But one whole state over. I have closed loans in MD, CT, NC, SC, CA, NY, IA... all while still working in PA.

What it comes down to is knowing the title insurance fees and what is supposed to be escrowed in those states. And to also know the state stamp tax laws and rates. ... basically who pays what. Other than that, it wouldn't matter then.

And in regards to appraisers? I work with two national appraiser's that have appraisers approved in each town, county, and state. So it wouldn't be any different than if I was next door to you and your client. The only thing that they won't get from me is a handshake and a face to face closing. But ask anyone, I can be reached by both e-mail and cell phone 7 days a week. Communication and knowledge is what closings loans correctly and on time.

Eric... I am not knocking what you are saying. But I get clients all over the United States and I am hear to educate them and realtors that don't have a realtor or another loan officer sell you that I want get what I promised done. If they trust me and feel 110% comfortable with me, then they can shop me, but come back to me at the end. This is called awareness.

I hope I didn't hijack your post. I know you are trying to educate others out there. But sometimes we need to be careful on what we say, because it could hurt the client in the end. Especially if my deal is better and I educated the client along the way and actually put them into a better mortgage than the guy next door. thanks

jeff belonger

Sep 02, 2007 10:00 AM

Jeff, You have made some god points. Most of the time the other realtor knowss very little about the loan officier and the loan they are trying to get. I am spoiled with an in-house lender than keeps most of their loans and has in house processing. I can call anyone in the chain and find out what I need. They e-mail the things they need and I do the same with them. The big issue may be how they find the lender and its like shooting in the dark because all the buyer knows is the lower rate. Few lenders have your experience and most likely do not know the questions to ask.

Sep 02, 2007 10:21 AM

Eric... amen.... I am there with you. About 6 of my last 10 blogs have been exactly about this. Choose your lender wisely. Anyone can make promises on rates and fees. This doesn't always mean much. You hit the nail on the head. If they don't ask the right questions up front, just because you got a low rate, doesn't mean that it will always be the best for you. I am going through this with a client as we speak. I will know more on Tuesday.

Sep 02, 2007 10:27 AM

Getting that good deal? Out of town Lenders Is 50/50!

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