Yes this article is prompted by the heavy advertising going on by various national mortgage companies and their loan officers. I hope that you follow my advice of choosing your lender. The person whom I recommend you use for the best mortgage experience is the loan officer recommended by a real estate agent you are working with or know.
Your chances of having a bad experience comes from an online lender, a radio ad lender, or someone who only has you to please. Does this make sense? When an agent connects you to a lender that lender has not only your experience to take care of but this loan officer risks losing all possible referrals from that agent.
I am hoping to share facts so that you understand two important things: 1- lenders have little control over how much business comes in and when it comes in. Usually new business comes in waves. As a lender I have had times where I had to work almost 24 hours straight to manage my files. Many times I woke early, real early going through my files if not directly, in my head. These surges cause some lenders to have to work on the most important files to them first. You want your file to be that most important file. 2- Some lenders don’t keep their word. The most grievous case I experienced was with the largest lender in Seattle. This bank is now out of business. They quoted a rate I couldn’t compete with. Actually I knew this was a fake rate and told both the client and the agent representing the client that that rate was not possible. They gambled and guess what? At closing they were forced to take a different rate to close the loan on time.
Most lenders are competent. Almost all lenders are honorable. My message is to tell you to take no chances. Use a loan officer that sends more than your file to their lender. Use their lender.
Another thing to consider is about your quoted interest rate. Rates can change several times a day. If you aren’t locking your loan at that very moment you are likely to be quoted a rate than you will never get. My first employer as a loan officer was the largest bank at the time from Milwaukee. They would run a rate advertisement on Sunday. They had to put their quote in on Wednesday to make the Sunday issue.
Monday the phone calls started coming in, and in a volatile market we had no way of honoring the Sunday, really previous Wednesday, interest rate that they had advertised. I hated it and finally refused to work the phone leads coming in. I suggest you give up If you area building new construction just pray that we don’t have a run away surge in interest rates. We haven’t had that in years but I have lived through those types of market conditions and they are not fun.
My summary statement is this: if a lender wants to keep the continued business of a real estate agent or company they will never be found to be non competitive. That is what you should consider on interest rates.