Not all mortgage companies are the same. What type of lender or mortgage professional you work with can make the difference between you being successful in your home-buying endeavor or not. You want a lender, or someone working on your behalf who has the “whatever it takes” approach to helping you with financing. No matter how hard or how “vanilla” your loan is, you want someone in your corner who understands the intricacies of mortgage finance. If you’re searching for a mortgage or will be in the future this article is for you.
Most mortgage companies work off mortgage volume. The more loans they originate, the more that company earns. The same goes for independent mortgage loan originators. The more loans that they originate, the more that they earn. You want to work with a mortgage professional who has at least 10 years of experience, more is always better. Having 10+ years of experience means they’ve seen different markets. The more markets that person has seen, the better they can advise you about locking in interest rate, when to purchase a house, and when to refinance. So, experience in the mortgage professional that you select matters. You also want a mortgage professional who has a book of business. Working with a mortgage professional at an independent bank is not typically the type of lender or mortgage professional that you generally want to work for you. If your property is complex and unique, or your financial profile is extremely technical. Such a relationship might be very beneficial. However, if you don’t have anything associated with your financial mix that would pertain to having a portfolio lender, then you want someone who has an independent book of business. Someone who understands that the value of the relationship between the mortgage professional and the borrower is paramount above all else.
Here’s why all these matters. This person, just based on how they’re paid is going to be someone who will find a way to make your loan work. You want someone who not only understands the intricacies of mortgage finance but also is a unique problem solver and has a “whatever it takes” approach to helping you get through the lending maze. This person generally can help you as it relates to your loan. Not only getting pre-qualified and or pre-approved to purchase a home, but also watching your loan over time. A seasoned mortgage professional’s business would look something like this. They help you purchase a house, then they help you refinance that house to lower the interest rate or get rid of PMI in the future, and then they do multiple loans for you over time. This person is watching out for you and your best interest. Then refer that person to more business over time. That is the perfect type of mortgage/borrower lending relationship that you should seek as it pertains to purchasing or refinancing a home.
Working with a mortgage lender who you will never talk to again after they close your loan, is not something that you want. You need to remember the way a mortgage originator’s business works is directly tied to the origination of new loans. Based on the very foundation of their loan, they’re going to proactively look out for your loan and help identify opportunities for you to chip away at that mortgage loan over time. It might mean making you aware of the fact that you have an additional 25% or 30% home equity in your property that you could use to fix up your home or pay off consumer debt. It also might be the right time for that person to reach out to you to make you aware of an opportunity to refinance your mortgage at no points, no fees, and help you chip away at that loan over time. The reality of it is that you want someone interested in the long-term approach. You want to run away from someone interested in the one and done. The one and done, is not cultivating, and taking care of the business they already have. This is something to think about as it relates to purchasing or refinancing a home next time, you’re in the market.
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