Tuesday, September 7, 2010

Why I Refer a Mortgage Broker to my Buyers

Home purchase loans can be found all over. Internet, Banks, Credit Unions, and Mortgage Brokers. My top choice is a Mortgage Broker. And, not going to lie, I do have a favorite....for good reasons.

Internet loan processing, or pre-approvals are common place. They offer rock-bottom pricing, what's not to make a buyer want to go there? But, do they come through in the end? Not as well as we'd like, not without a few challenges. The last buyer I had that used an Internet lender did save a chunk of money, but the lender was in another state. Although he said he did many California transactions, he still thought that the phrase 'Close of Escrow' meant the day the buyer signs their loan docs in escrow! Yikes! Thank goodness for the fact that myself and our escrow officer were diligent in educating he and his processor to the difference. I think they were in Colorado....is that their program over there? Or, really, was the Internet lender just stupid and trying to cover up? Don't know, don't care......got it closed, but with maximum headache!

Banks are another lender of home loans. Checking with your local branch is great. Maybe the manager is a personal friend. But, how many choices do they offer? What different types of loan programs do they have? How competitive are they with themselves and if you're a circle that doesn't fit in their square peg, then what?

Credit Unions, local usually. Great source of monies for home loans. Similar to banks though, if you don't fit in their program, where do you go?

So, the Mortgage Broker is the one that can provide loans through many different lending institutions. Ones' we never heard of and certainly would never, ever have found on our own. So they do work harder for the best loan for you. They do have to have an in with all those money givers. They do have to know, pretty dang quickly, which lender is offering the best rate, price, fees.....etc. And, they are usually local to the area where the buyer and chosen property is located.  Knowledge of local custom....vital. Fitting the circle in a circle and a square in a square, that's what they do.

I've got a favorite, not naming names here, that I've known for 20 years. Never let me down, even in a really tough situation, still closed the deal.  Priceless, as the commercial goes.

I always tell buyers to check with two or three. Let them know you are shopping around, sometimes a little break can be had. But, what's that old adage? You get what you pay for? Very much so, right on the money!

And when you are about to close escrow on the home of your dreams? You want to be sure the right lender is getting you your right money at the right time.

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