I've been talking with a gentleman from California who is getting ready to relocate here to St. Louis. While I was introduced to him through the real estate side of my business, we started talking about how he was going to finance his purchase.
Turns out that he's doing what a lot of borrowers do. He's shopping the internet for a lender.
He'd been on Lending Tree, as well as several other of these services where "Lender's Compete For Your Business" and had actually gotten to the point where he was confused because all of these lenders were telling him different things.
One told him that they would have to treat the purchase of his property here in St. Louis as an investment property because he hadn't sold his home in California yet (not true, by the way) and another told him that that he would have to go with an adjustable rate because his back end ratio was going to be too high for a fixed rate (again, not true). Yet another told him that he would have to pay a higher rate because his middle credit score (it was in the mid 700's) was too low to qualify for their "excellent credit" programs.
As I thought about his situation, I started to wonder about the downsides of a guy in California, buying a home in Missouri and talking with lenders from New York! Aren't all real estate markets local?
Also, with all of the complexities of mortgage lending, how good can you expect a call center employee to be? God forbid, but what would happen if something went wrong with this guy's transaction? Would Roger, the call center guy who was of the opinion that you can't buy a primary home in the city that you're moving to until you've sold your previous home (even though you more than qualify for both notes?) be able to handle an appraisal or title issue if one were to arise? Something makes me wonder???
It's Not Limited To Lenders
Then I got an email from another person relocating to St. Louis. He had read my blog and was curious if I would mind him asking me a question or two.
It turned out that he had been required to work with a specific agent whom had been referred to him by his company's relocation firm. Actually, he was free to work with whomever he choose, but if he didn't work with this particular agent then his company's relocation package wouldn't be available to him.
One of the questions that he wanted to know was if it was true that the entire city of St. Louis was a "War Zone"? Apparently that is what this agent had told him when he expressed a desire to live in a more urban setting and wanted an older home with character.
While I didn't want to step on this agent's toes or violate any agency relationship that she might have with him, this was Hog Wash and I felt compelled to tell him that. St. Louis has many areas that have "older homes with character", both in urban and suburban settings and the entire city of St. Louis is not a "War Zone"!
So, again I was left wondering if these service providers knew their axx from a hole in the ground? If this lady could be so misinformed about something like the characteristics of a city that has some wonderful neighborhoods with homes ranging into the millions, what else could she be misinformed about?
My Conclusion - It's Important To Know Whom You're Dealing With
I honestly don't know what the ends and outs of the relationships between relocation companies and the employers that they work with are. Or what this guy's options are regarding getting a different agent, but it would have me concerned if she had made such statements to me.
If it were me, I'd want to work with somebody who was more aware of the various areas in her market area, if nothing else.
Regarding the guy shopping the internet for a mortgage, his situation too would bother me. I don't know that I would want to work with someone who is sitting in a cubicle with a headset on playing Nerf basketball as we discussed my mortgage needs.
Maybe this caricature of the internet lenders isn't 100% fair and there are really some well qualified people manning their phones, but from this guy and other's experiences, I do really wonder.
Be it my mortgage lender or my real estate agent, I would want to feel comfortable that there was somebody who was skilled, knowledgeable and committed to serving my needs working in my corner. Somebody who I felt I had a relationship with and who would look out for my needs in the transaction. In short, I would want to know and feel comfortable with those service providers!
R.B. "Bob" Mitchell
ValueList Real Estate Services, Inc.
Bob Mitchell is president of ValueList Real Estate Services, St. Louis' largest discount/full-service real estate and mortgage company. If you would like to find out more about Bob, ValueList or our flat-fee listing program, please feel free to visit our web site at valuelistre.com
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