I just went to "My" bank to apply for a mortgage...

Hi Sally K. & David L. Hanson - There is a lot of competition out there and buyers should do some shopping to make sure they have the right partner to help them. 

Good morning Sally and David - there are plenty of horror stories about Banks.  As the Realtor you need to guide the buyer.

This requires due diligence and it is impossibly unfair of you to want people to do their own research.  One size should fit all.  Everyone should get the same all the time.  There are no differences so any bank should give the same to everyone.

Wait, that can't work...

Sally and David it would be a major red flag for me if a Loan Originator or Lender has a copy of the Sales and Purchase agreement and is asking those questions!

Hi Sally, I'm very careful in finding out if prospective clients have received a true pre-approval from "their" bank or just a quick pre-qualification. I always encourage them to speak with a couple of lenders before making a final decision. Just had a client who is looking to refi tell me she was working with her bank and when I asked what rate they quoted her, I almost fell off my chair when she said 4.75% because they told her rates were going up! What? Rates were going down. In any event, I put her together with one of my best lenders and that very day she was locked for a much lower rate which was further reduced because she is a teacher.

Hi Sally... that was a point, I failed to mention. She had an excellent credit score of over 750! I have another client whose locked rate was is 4.25 with a credit score of 680 before rates dropped again recently. I knew someone was trying to "take advantage" of my little teacher.

I don't feel as if I should force anyone to choose a lender that I know and trust, although I always encourage them to.  Currently, I have buyers that went with their credit union and are learning the hard way that they didn't make the right choice.  I think it will close, but they are certainly frustrated with the process and the fact that it has been delayed by their credit union.

Hello Sally K. & David L. Hanson, some buyers feel comfortable working with their preferred lender without asking any questions, others ask for recommendations.   I do provide them with a list of lenders I've personally worked with and have a great experience but at the end of the day, it's their choice. 

Great posting Sally and David. Always go with your local mortgage broker. 

Hi Sally and David- I think that many buyers don't understand the need to shop around for the best rates and packages for them. 

Could it be... do some consumers think that ALL lenders offer the same programs, rates, terms, etc?

Morning Sally.

I tell my clients to at least check with several different lenders.  Most find out soon enough which one they would prefer to work with. 

Very good post! Some local banks do not do many mortgages.

I have always tried to recommend local mortgatge loan officers who offer outstanding service and competitive products.

This is an important issue to help the buy understand.

Many issues can arise from choosing the "wrong" lender.

Rates and their charges can differ. In a tight market the buyer may need quick conversations with the lender to proceed with an offer. If the lender does not offer weekend phone calls, or even evening calls, the buyer could lose out on their dream home.

Thanks for raising our awareness and hopefully the buyers will take note.

Sally and David:

I've had a couple of buyers who tried to work through THEIR banks and it was a mess - but of course some are much better than other. In one case buyers decided to pay cash since after a couple of weeks they were told they could not get the loan they needed but had been told all along there was no issue. They left the bank (and they had a lot of money invested there).

Jeff

Interviewing clients about their lender includes asking the right questions.  Making sure they are pre-approved versus being pre-qualified provides them with the best "ammunition" to get their offer viewed and hopefully accepted.  Finding the one lender that feels right, communicates well, and lays out the groundwork for a buyer is critical. Great post!