Based on this ever changing Lending arena, coupled with my past week of
Lending debacles, I thought this would be a good time to re-visit some quick tips and what sorts of things you should be asking when it comes to selecting a Lender.
I have a preferred Lender I've been working with for over four years now, and when the two of us are partnered up on a deal--I'm going to toot our horns here for a minute >toot< >toot<--we're unstoppable! I work with this Lender because she shares the same commitment to education as I do. We both stay on top of market trends and guidelines, and we freely exchange information so that each person knows just enough about the other persons part of the transaction. This has been a LIFE SAVER for me in these challenging times!
That being said, it never ceases to amaze me that I can recommend this top notch Lender to clients, and give them concrete reasons why I'm making this recommendation, coupled with references, and still...they go elsewhere. People! The biggest reason I'm making this recommendation is (hmmmm...is this the part where I become benevolent, or just remain honest and forthright?) I WANT TO GET PAID! I want to know that my deal is in caring and capable hands, and at the end of the day, after all my hard work, I'm going to see a paycheck! Okay sure, I also want to see you have the smoothest transaction to a successful end...your dream home--absolutely! But ultimately, I want to get paid.
So okay...you still don't want to listen to me? Fine. Then please take this next advice to heart when you're selecting a Lender:
If you're selecting a Lender solely on rate, you could be heading down the road to disaster. I'm going to share this story with you as an example:
My most recent clients are very well educated--ones a Doctor and the other is a Business Consultant. Both very cerebral and literal--just the facts for them! The husband was dealing with the financial portion of the transaction and originally wanted to go with his current Credit Union, and not my preferred Lender--fine. However, the Credit Union was not going to be able to close the loan as quickly as my client liked.
Instead of sticking to the Credit Union, he began his quest to shop around online for a different Lender. Determined not to use my preferred Lender, he found a "Sr. Financial Coordinator" (is that the new term for Mortgage Broker?) and called to ask me a few questions about his selection. Based on what he had told me, I had suspected that this gentleman did not work directly with a bank, but was likely either a broker or a hybrid with a line of credit they use to fund loans that they cannot sell prior to closing. I warned my client that I thought we'd get down to his tight closing date and the "Sr. Financial Coordinator" would come up with all kinds of excuses as to why we can't close on time (meaning they are trying desperately to buy enough time to sell the loan before they have to tap into their existing line of credit) and they would be asking him for ridiculous things all the way up until the day of closing. And what do you think happened? BINGO!
I wish that was the worst of it, but sadly...this "Sr. Financial Coordinator" was working for an East Coast bank, miles and miles away from the underwriters and he couldn't get the deal done. He made some crucial rookie mistakes that made it impossible for him to close the loan, and we ultimately had to pull the deal and take it to another Lender. This saga continues and hopefully we'll see a happy ending.
The greater point I'm trying to make is...do your due diligence. If you're not going to go with a Lender that your Agent has recommended, make sure the Lender you are going to use is going to be able to work to your benefit.
Do they have their own funds to lend, not just a line of credit? If they don't, you may find yourself missing your closing date at the end of the transaction. And if you've currently given notice where you live, that can be outrageously stressful. Not only that, the Lender has less control over the transaction if they are working with a bank that's out of state.
Do they have an in house underwriting department? Meaning, can your Lender actually talk to the underwriter and have issues resolved or clarified in a timely manner? Are there accessible managers, etc?
Do they do a lot of purchase business? If they mostly handle refi's, chances are they aren't going to be able to get creative enough to handle a lot of the nuances to do with purchase transactions--particularly those related to first time home buyers.
Don't let rates be the only deciding factor.Sure, we all want to get the best rate, and usually stems from our egos wanting to brag about "oh yeah, I got 3.9%...I'm a rock star!" You're not such a "rock star" if the Lender can't actually do the deal.
If you're really rate conscious, go to this site. You can type in your zip code and get a range of products and rates. If you really do just care about the rate, make sure your loan is everything you think it's supposed to be and that you're not getting charged for all kinds of ridiculous fees. Ask for your "Good Faith Estimate" and look over it carefully! That teaser rate might not turn out to be the overall best deal.
Ask questions and get references! Find out how long they've been in the business, and ask for a few names of folks who've closed loans with this particular Lender.
And to you Agents out there, your life will be so much easier if you can develop a really good working relationship with a Lender. Share information, educate each other, and hopefully you'll see greater successes together.
And finally, when selecting a Lender...take it seriously. This person has probably your greatest financial investment in their hands.
If you're looking to purchase you're next home and you want to work with the MOST AWESOME Realtor/Lender partnership out there....contact me today! We'll get the deal done :)
And as always....Make it a great day!
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