Mortgage Shopping- A Different Approach

Ever begin shopping for a mortgage loan and then realize the mortgage company you selected isn’t the right fit for you? If yes read on….

Everyone wants a combination of the best interest rate, fees and terms available on any given day for their mortgage loan scenario. Whether a purchase scenario or a refinance scenario, consider shopping the mortgage loan based upon the loan officer, not the mortgage company. For example consider working with a big mortgage bank if you have a personal relationship with the loan officer at the bank. If you know that loan officer that can perform for you then work with them.

Where folks get into trouble mortgage shopping, is they make a decision based upon the company, not the person.

No matter what mortgage loan company you hire to handle your mortgage financing, you’ll be working with loan a officer representative which should have a vested interest in making sure your loan closes on time. The mortgage loan business is based upon relationships. So shop your mortgage loan based upon the person you feel can handle your mortgage loan the best.

Following is some questions you can ask your mortgage loan officer when doing your mortgage loan shopping.

1. What is happening with interest rates?

2. Are your bank or broker or both and why should I use you?

3. What is your mortgage interest rate lock policy look like?

4. How does my debt affect my ability to qualify for financing?

5. How do you get paid on my loan?

Be mindful of the fact that your loan officer is going to be looking at your complete financial profile, this means your tax returns, pay stubs and full credit report. This should be a person that you trust, somebody who understands mortgage finance like the back of their hand.

Interview loan officers and their business models to determine which one makes the most sense for you. Most loan officers that work at the big banks such as Wells Fargo or Chase, work banker’s hours, and have so much loan volume going through their pipeline that communication could play a factor in your ability to actually get your mortgage loan closed. Nothing is more important in a mortgage loan transaction than communication with your lender, especially during key points such as when the appraisal comes back, when the loan is reviewed by an underwriter ,when docs go out and when your loan funds.

Work with loan officers that provide you mortgage loan numbers up front and in writing. If the loan officer that you are speaking with is not willing to give you numbers up front with no obligation move on.

By mortgage shopping, the person, not the company you are in better position to be working with a true professional.

Here’s a hint: most of the true mortgage loan professionals out there do not advertise rates, they don’t have to because they have a book of business built upon solid relationships. Sometimes you’ll find them in Google hint, hint or otherwise through a real estate agent or a friend or colleague.

Seek out quality.

Working with the absolute lowest rate nine thinnest margin lender out there could negatively affect your loan and your experience because this is usually, not a place where you’re going to get service, an item critical in today’s credit environment.

Here’s a mortgage shopping scenario to illustrate our topic:

Lender A offers you a 30 year fixed-rate mortgage at 4%, with no points, seems too good be true right?

Lender B offers you a 30 year fixed-rate mortgage at 4.25% with no points.

Lender C offers you a 30 year fixed-rate mortgage at 4.375% with no points.

From your phone conversation you get the feeling that Lender A is extremely busy, but his pricing is so great. Communicating with this lender is sometimes difficult and they almost never return your telephone call.

Lender B is pretty responsive, friendly and offers you thorough analysis of how the loan will play out moving forward.

Lender C is also very busy, they are responsive to you and make sure that your questions are answered in a timely manner.

When you’re done doing your mortgage shopping, which lender do you go with? Well, consider the first offer, thin company margins, this lender more than likely is a volume-based lender and customer service is not there focus. Lender B’s rate is slightly higher however they are responsive, answer your questions and they communicate well with you and they want to make sure that they give you a combination of rate and service. Lender C is also responsive, and they also communicate however they are priced out of the market.

The answer is Lender B because they have a combination of service and rate. They’re not so far out of the market that they are uncompetitive and they can offer you the service/communication you deserve.

For your mortgage shopping, it’s difficult to go wrong, basing your search upon the right loan officer.

By shopping for the right loan officer, followed by shopping competitive rates and terms, you are in lockstep position to getting a mortgage loan that will actually close. In the meantime,why not get a complementary mortgage interest rate quote to begin your shopping?

There is always a different approach to mortgage shopping when searching rates with a local Santa Rosa mortgage lender.
























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  1. […] a competitive combination of rate and  associated costs in their purchase or refinance loan. Comparing mortgages, doing true apples to apples comparisons can be quite time-consuming and nonetheless […]

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