Not all mortgage companies are the same. The type of lender or mortgage professional you work with can make the difference between whether or not your home buying project is successful. You want a lender, or someone working on your behalf, who has the “all it takes” approach to help you with financing. No matter how difficult or “vanilla” your loan is, you want someone in your corner who understands the intricacies of mortgage financing. If you are looking for a mortgage loan or if you will be in the future, this article is for you.
Most mortgage companies work on mortgage volume. The more loans they issue, the more this business earns. The same goes for independent mortgage originators. The more loans they issue, the more they earn. You want to work with a mortgage professional who has at least 10 years of experience, more is always better. Having over 10 years experience in lending means they have seen different markets. The more markets this person has seen, the better they can advise you on locking in interest rates, when to buy a home, and when to refinance. So, the experience of the mortgage professional you select is important. You also want a mortgage professional who has their own business portfolio. Working with a mortgage professional at an independent bank is usually not the type of lender or mortgage professional you typically want to work for you. If you have a relatively simple file, if your property is so complex and unique, or if your financial profile is extremely technical, such a relationship could be very beneficial. However, if you don’t have anything associated in your financial makeup that would relate to a portfolio lender, then you want someone who has an independent business portfolio. Someone who understands that the value of the relationship between mortgage professional and borrower is paramount above all else.
Here’s why it matters. This person, just depending on how they get paid, will be someone who finds a way to make your loan work. You want someone who not only understands the intricacies of mortgage financing, but is also a unique problem solver and has an “all it takes” approach to get you through the loan maze. This person can usually help you with your loan, not only to get pre-qualified and/or pre-approved for a home purchase, but also to monitor your loan over time. A seasoned mortgage company would look like this. They help you buy a house, then they help you refinance that house to reduce the interest rate or get rid of the PMI in the future, and then they give you multiple loans over time. This person is watching over you and your best interests. Then refer that person more business over time. This is the perfect type of mortgage relationship you should be looking for when it comes to buying or refinancing a home.
Working with the mortgage lender who cold-called you or sent you a direct mail solicitation, someone you’ll never talk to again after your loan closes, isn’t something you want. You must remember that the operation of a mortgage business is directly linked to the granting of new loans. Based on the very foundation of their loan, they will proactively research your loan and help identify opportunities for you to reduce that mortgage over time. This may mean making you aware that you have 25 or 30 percent extra equity in your property that you could use to repair your home or pay off consumer debt. Now may also be a good time for that person to contact you to let you know about an opportunity to refinance your mortgage without points, at no cost, and to help you reduce that loan over time. The reality is that you want someone who is interested in the long-term approach. You want to run away from someone who is interested in this one and it’s done. Both usually have less than stellar communication because their business is all about new business and not growing and caring for business they already have. That’s something to think about when it comes to buying or refinancing a home the next time you’re in the market.
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes, vacation homes and investment properties. Learn more at www.sonomacountymortgages.com.