Mortgage And Loan Officer Tips
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It’s been a while since I have made note of this: we own a small mortgage company. I bring this up as the industry has gone through tremendous change both nationally and in Washington State.
I provide you a list of important tips for you.
1– Mortgage Company Loan officers are generally independent contractors. They often pay a flat fee and/or a file fee to their broker, keeping the bulk of the fees for themselves. This gives them the ability to charge what they want on your loan.
2– In these times of greatly reduced business, some loan officers want to make a killing on one loan (like yours) while others are building a reputation of being competitive.
3– My experience is that online mortgage companies aren’t your best source of loans, even if they quote a good rate. Many just sell your name as a lead, taking a piece of the pie. They care most about closing you and least about you as a source of referrals.
4– Using a lender referred by a real estate agent is the best way to keep the loan officer in the mode of being competitive. It also places your loan as a high priority. The reason, the loan officer wants to look good to the real estate agent, hoping to deserve a steady stream of mortgages from the agent. I built my career as a loan officer on this concept. I had agents that trusted me.
5– This is a bad time to use a part time loan officer. Even me. People that want me to do their loans don’t get me. I know it is in their best interests to have me refer them to a competent loan officer. The lesson is important here, don’t use a loan officer that is part time.
6– In many cases, especially first time home buyers you may be best to use a loan officer that can quote FHA loans. Actually, use one that is very familiar with FHA.
7– Don’t go with the cheapest rate quote lender. Rates these days are volitale. By the time they take your ap rates will have changed. You are prey in the waiting if you choose a lender by rates. The chances are almost 100% you won’t get the rate you are quoted if you shop and pick that way.
8– Don’t be afraid that rates are too high to buy. They are higher than in recent months. However, prices are buyers market prices in most of the Puget Sound.
9– Don’t go shopping without a full loan approval. That means they have drawn your credit report and submitted you to an underwriter.
10– This may seem to contradict #9 – don’t go get a mortgage approval without having done some window shopping. You should know what neighborhood and price range you are happy to own. Do drive byes, pick up flyers, drop in on open houses (tell the agent you have an agent so you don’t get high pressured too soon), search the local webisites that have MLS search. Then talk with an agent for a lender referral.
