When you’re in the market for a new home, having a good lender is essential. In a seller’s market or at entry-level price points, where many first-time home buyers are also submitting offers, the information in this blog becomes even more critical.
I like to have a buyer’s lender call and speak to the listing agent when I submit an offer. I want to know what their qualifications are, and more importantly, the lender’s ability to close in the time stated on the residential purchase agreement. This is where a local lender becomes very important; it is unlikely if you go with an out-of-state lender or one where you have to speak to somebody different each time, that they’d be willing or able to make that call to the listing agent.
However, if the listing agent has worked with the lender before (odds increase if they are local) and had a good experience, the buyer is one step closer to getting their offer accepted over others. Simply put, people like to work with people they know they can trust.
Another question to ask your lender is if you’ll be completely underwritten with a complete file in hand. This prevents surprises. If you walk into a bank and give them the basics, oftentimes they will give you a pre-approval for a certain amount, or for the amount you stated you would like to have (provided you qualify).
This is fraught with land mines – once you are in contract, that lender is now asking for additional paperwork and, surprise! Something comes up under Freddie and Fannie guidelines that won’t allow you to get the loan for that amount, or at all. This is not a happy situation for anyone involved, so it is also helpful if the underwriter is somewhat local and they work closely with the lender on a daily basis. Communication is key!
One of the many benefits of working with a mortgage broker is the appraisal managment company most likely has better quality appraisers, who know the neighborhood they appraise in. They can’t select who will appraise the property, but they can choose who is or isn’t in the group.
Finally, if you are shopping a loan, make sure you are comparing apples to apples. If you get a quote for a condo, make sure the other company is also quoting a condo and not a townhome. I know some great lenders – contact me if you would like their names and numbers.