When shopping around for a good mortgage broker or loan officer, it’s important to find someone you can trust. You may be applying for a loan with the most reputable, trustworthy bank on the street, but the quality of your experience depends on the guy who picks up the phone when you call.
When shopping around for a good mortgage broker or loan officer, it’s important to find someone you can trust. You may be applying for a loan with the most reputable, trustworthy bank on the street, but the quality of your experience depends on the guy who picks up the phone when you call; not on some faceless entity called Wells Fargo. You have to feel comfortable with your mortgage professional in order for to work.
There are thousands of brokers/loan officers out there, but not everyone deserves your trust. Here are some behaviors that you should be wary of:
Unrealistic Rate: Be wary of a loan officer or broker who quotes a rate that just seems too good to be true. Bait and switch is alive and well in the mortgage industry and many brokers will give you a teaser rate they know they cannot deliver on. Problem is, you may not find out it’s a teaser rate until it’s too late.
Refuses to quote a rate: Many brokers will refuse to quote a rate. They’ll try to get you to hand over your documents and open an account first, claiming they cannot quote a rate without the information. A good mortgage professional can quote a rate with the following information; rough credit score, value of home, amount being borrowed and type of documentation (full doc, stated, no doc). As a mortgage consultant I could always quote a rate my prospective clients could bank on, within twenty minutes of receiving the call. You do have to understand that if some of the variables are not what you have said, like your credit score, things may change. For example, if you have a 30 day mortgage late and do not disclose it, you cannot expect to get a realistic rate quote. Even if you have a very high score, in the high 700’s for example, a mortgage late may disqualify you for prime borrowing.
The New Guy: There’s nothing wrong with being new on the job, but inexperience can mean the difference between your loan funding and it getting turned down. It’s all about the packaging. How you structure the loan will be the determining factor on whether the loan is accepted and funds or it is delayed or even turned down. You can take the very same loan and give it to an experienced loan officer or broker and a new one and you may very well get two completely different results. This is especially true when it comes to non- prime lending. Prime loans are structured basically the same and they don’t take the creativity and finesse that non- prime loans rely on. If you have a particularly challenging deal, maybe due to your income picture or the home itself you’re going to want someone who knows the tricks. Once the underwriters have seen a loan package there is no going back. If your loan officer makes a mistake, an honest mistake it can cost you the loan. Choose experience when refinancing your non- prime loan.
It’s the Man, not the Organization
When you’re shopping around for a lender it’s not just the organization that is important, but the person who picks up the phone that really counts. You may be calling on the most respected bank or lender on the street but it’s they guy/gal who answers the phone that will either make or break your loan. Large companies like Wells Fargo and Bank of America are only as good as their sales force, the mortgage consultant or loan officer who structures your loan package.
The more information you give him/her up front the more likely your loan will fund and the faster it will go through the system. Help your broker or loan officer help you. Pick a company, then pick your mortgage consultant’s brain; you’ll be glad you did.
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