Over the last few months I have had numerous inquiries about what is the most advantageous way in obtaining a mortgage and how to go about picking and choosing a lender.
One who will guide them through the sometimes arduous and burdensome paper producing process of borrowing money for that most valuable asset that the typical homeowner will call home for many years.
Similar to hiring a qualified, knowledgeable, service oriented Realtor, one must always be cognizant of the same “facts of life” that some will do the right thing and many will not. What I mean is that there are so few “top producers” out there, that the old, 80/20 rule went out the window many, many years ago; it is more like a 95/5 rule, that 95 percent of the money is earned by only 5 percent of the professionals in all businesses.
I believe the reason for this unfortunate situation is that business has gotten, extremely complicated and mind boggling with all that one has to do, to keep even or ahead of the curve and crowd, but in many ways easier with all the amazing technology and at the same time, if one knows how to utilize it .
Any mortgage person (or matter of fact any business person in any business) that isn’t using technology to grow, expand and excel in their prospective businesses, is surely left behind, even from a few years ago.
Yes, referrals are the lifeblood of any successful and profitable enterprise; however, one who just relies on one stream and source of business is probably not at their optimum production. This is where technology comes into play.
You can always ask a friend, business associate who they had or are currently using to borrow money; or you can go and visit your local banker too.
However, will you obtain the lowest current rates available, most economical costs to secure your mortgage, superior customer service, regular follow up communications. Some will get a good rate with poor customer service, some will not.
As they say, “Caveat Emptor” (buyer beward!).
Finding a mortgage broker who will provide both low rates combined with an excellent customer service experience, is many times hard to come by. I have experienced this with homeowners, who I ask, “do you know who sold you your home”?
Many times they do not remember or they say, “I would never use that person again, nor would I recommend them either.
Well, lo and behold, the same is true in almost every industry and the mortgage business is not immune from the same effects of, “poor quality of service and lack of caring and concern” for those seeking a fair deal with the need for great customer service.
It’s not just about the lowest interest rates, and of course, we all want that, but it is truly about superior customer service that we strive to seek out and locate both at the same time. The only way to accomplish this, is to interview two or three mortgage individuals and ask them the following questions:
1. How long have you been in the business?
2. Can you provide the names and numbers of some of your customers that you provided mortgages to when you first began (or if in the business five years or longer) as well as some current ones, to determine what kind of service they provided, “Before, During and After the Sale.”?
3. How many mortgages have they secured and closed in the last one to three years?
4. What kind of mortgages and rates do they offer?
5. Is your mortgage company in more than one state and if so, which states are you licensed within?
6. What is the normal time of securing a written commitment w/o conditions?
7. What are the required documents that the mortgage person need up front to begin the process, e.g. issuing a pre-qualification letter) and how long will it take to receive it?
8. How many sources do they have to seek out the lowest rates?
9. Do they offer “receivables,”asset backed type and foreign national mortgages?
10. Do they provide mortgage loans to those who may have the majority of their income in another country?
11. Will they come out to your home or will you have to go to them?
12. Do they accept cosignors or guarantors for the mortgage?
13. What is their minimum out of pocket requirement (usually 20 percent), to avoid private mortgage insurance and when and how is it removed from the loan?
If you have never owned a home, home owner asssociation, condo or co-op, these are some, but not all of the questions you might consider asking, assuming some or all are important to you in obtaining a loan to purchase.
Those that are from another destination have to be extremely careful, unless they are paying outright for their purchase, and not subject to any financing.
One must ask the lender, do I need a social security number, a federal I.D. number, if for a business and what income, credit and debt/income requirements might they need. In the end you should have a clear and concise idea, which mortgage broker or banker (direct lender, who has their own sources of money to lend) that you want to hire.
Ask the right questions and you will hopefully receive the answers and responses that make sense to you and will then provide you way to come to a conclusion in picking the right lender to assist you.
We have several lenders to choose from as well as attorneys, inspectors and a title company too!
January Bonus Information for our Readers:
If you would like to receive a digital copy to print of a “Sellers Guide, Things to Consider When Selling, Millennials & Buyers Guide to Purchasing a Home, see the links below and click or copy and paste into your browser:
http://www.simplifyingthemarket.com/en/sellers/?a=28598-a5c8d945f1821b690c117ac4508ba040
http://www.simplifyingthemarket.com/en/millennials/?a=28598-a5c8d945f1821b690c117ac4508ba040
http://www.simplifyingthemarket.com/en/buyers/?a=28598-a5c8d945f1821b690c117ac4508ba040
Phil is the owner of Turn Key Real Estate at 7 Bond St. in Great Neck. He can be
reached by email: Phil@TurnkeyRealEstate.Com or by cell (516) 647-4289 to answer any of your questions.
To search for any type of properties or to see what your home is
worth or homes that have sold in your area, go to:: WWW.Li-RealEstate.Com or if you desire a free, no strings attached customized comparative market analysis to see today’s market value, just call me for an appointment.
