In the past, a person who wanted to borrow money went to a nearby bank when it was time to choose a suitable mortgage lender. She would tie her horse up and sashay into the lobby of the bank. The business of lending the money was concluded with a handshake from the bank officer who had checked her financial position and made a decision regarding her ability to pay the loan off successfully.
These days it seems there are banks on every block. You can still meet with a loan officer in person, but that is not a necessity. Loan applications can be made online in many cases. When it is time for the mortgage documents to be signed, a notary may come to visit you in your home or at work. You can get it all done without leaving home.
Get A Mortgage Lender Who Has Good Reviews
If you make your mortgage application online, you no longer have to deal with a bank simply because it is near your home. You don’t have to apply to a particular bank simply because of loyalty if you are one applicant out of millions. The rate of interest on the mortgage or even the cost of the loan is also not the main factor. These days mortgage lenders are very competitive, and they are probably all going to make you a similar offer.
The main thing you need to look for in a mortgage broker is the one who offers the best service to customers. Look for excellent reviews by previous customers when you are shopping for a mortgage lender.
Your Agent Can Help You Find the Best Mortgage Broker
Probably the best person to help you find the ideal mortgage broker is your real estate agent. The real estate agent will be knowledgeable about which mortgage lenders will deliver the goods and which ones do not. Good performance by the mortgage broker is necessary when conducting a real estate transaction. When real estate transactions fail to close on time, it is usually because the lender has been unable to perform.
What To Look For In a Mortgage Lender
The ideal mortgage lender will take responsibility for your mortgage personally. They will be sure to keep in close communication with you, so you receive messages in a timely manner. Important documents will be delivered quickly. They can foresee complications which might arise, and they will take steps proactively to avoid problems. They oversee the entire process for you, and they will meet important deadlines on time.
Nearly every service business these days has an online presence. Often, a third-party website will allow anybody to post a review online, so you can not always tell if a review has been posted by a troll or a person with a vendetta. However, a lot of reviews posted online actually are legitimate. They come from real customers who have used the service. You can check the reputation of your mortgage broker online to determine the level of satisfaction from previous customers.
Even when companies offer a very streamlined mortgage lending process, this is still a business where personal touch matters. It is not only a question of the numbers. The main focus has to be on keeping customers happy.
Location Is Important
Although your mortgage lender does not need to live close to you, you should ensure that the mortgage broker is located in the same time zone.
There can be occasions when tight deadlines must be met, and if you are closing a sale in the state of California, it will be difficult to coordinate schedules if your lender is located in the state of New York. If you are dealing with a cut off time of 11:00 a.m., you might not be able to reach the agent on time. If the lender in New York is finished for the day at 5:00 p.m., you will not be able to contact them from Los Angeles after 2:00 p.m.
Listing Agents May Complain
Online mortgage lenders like to say they offer fast communication and turnaround times, but they face rejection from listing agents frequently. This is often true if there are multiple offers from buyers for a particular home.
A listing agent will often tell the seller to pick the buyer with the best qualifications. An out-of-area broker will carry less weight that a local mortgage lender who is well known. It is not fair, but on occasion, a buyer will lose a dream home because the non-local mortgage broker is not known to the listing agent.
Appraisal Selection
Another possible drawback is how the appraiser will be chosen by the company. Is the appraiser familiar with the area where you wish to buy a property?
Borrowers can have bad experiences with the selection of an appraiser. An appraiser from a different city will not be very accurate appraising a home in an area they don’t know very well. Your appraisal may end up being too low, and thus cause problems that could have been avoided.