Finding A Great Mortgage Lender In Phoenix, AZ

Find A Great Realtor and A Great Mortgage Lender Call Nancy Laswick 602-793-1627 www.northphoenix-homes.net

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Finding A Great Mortgage Lender

The purchase of a home is often the largest financial decision many of us will ever make so it pays to be informed about the process and to ask questions about anything you’re unsure of and that is certainly true when it comes to finding a lender and applying for a loan.

Q.  Who should I choose first a Realtor or a lender?

A.   Both are critical to a successful home buying experience but choose a Realtor® first. They’ll be with you through every step of the home buying process, the lender will only be involved with the loan itself.

Once you’ve decided on a Realtor® ask them for a referral to two or three lenders they’ve worked with and trust.

Q.  How can I trust a lender that is referred by my real estate agent? Aren’t they just drumming up business for a friend who is probably giving them a referral fee?

A.   Your real estate agent will only be paid if you are successful in buying a home and there are at least fifty different ways to drop the ball during the loan process. Your agent wants you to work with a professional who is honest and capable of getting your loan closed.

The lenders they refer are people they have worked with for many years. And the only reason they continue to refer them is because they get the job done. Your Realtor® wants you to have a stress free transaction.

As far as the referral fee is concerned the Real Estate Settlement Procedure Act (RESPA) a federal law enacted in 1974 strictly prohibits a real estate agent from accepting and a lender from offering kickbacks or other unearned fees for referrals.

Q.  Aren’t all mortgage lenders alike? Isn’t it just a matter of who has the lowest interest rate?

A.  Not so much. First of all there are three basic groups that you as a buyer can use to secure your loan. There are Banks, Mortgage Bankers and Mortgage Brokers. They have certain things in common and quite a few differences between them.

The details of those differences can save you time, frustration, money and sometimes literally mean the difference between owning and not owning the home of your dreams.

Banks – are the most familiar lender for most of us. They are usually businesses within our communities and offer checking and savings accounts, personal loans, auto loans and a variety of other financial products.

Mortgage Bankers – as the name implies are federally licensed commercial banks that focus entirely on mortgage lending. Typically they employ underwriters and loan processors so that everything is done in-house.

Mortgage Brokers – are federally licensed individuals or companies who sell loan programs on behalf of a large variety of lenders. Mortgage brokers search for the most suitable mortgage product for you and structure your loan to suit your particular needs.

Q.  What’s the advantage in using a local Mortgage Broker/Consultant instead of an online mortgage company?

A.  First off they’re local, you can meet with them in person. You can deliver your paperwork in person rather than upload it online. Typically a local mortgage broker will offer the widest variety of mortgage products and can find a product that fits your needs.

In my experience local mortgage brokers deliver a very high level of service, much more so than banks and far better than online lenders.

Q.  I’ve seen really low rates from online lenders and my local bank, can a local mortgage broker compete with those rates?

A.  Don’t be fooled by online or TV ads showing incredibly low interest rates. The truth is that most lenders draw on many of the same pools of money to fund their loan products and you may qualify for a particular interest rate with several different lenders.

The rate you end up with is determined by many factors but just because a certain rate is available doesn’t mean you will qualify for it. There is a fair amount of “bait and switch” that goes on with certain lenders.

Keep your eyes on the prize. Mortgage rates are still incredibly low. Your main concern shouldn’t be chasing the lowest advertised interest rate to save another 1/4% but rather finding an honest, hard working mortgage broker. One who is genuinely interested in finding the right loan product for you and making sure they can close the transaction. The interest rate is only meaningful if you actually close the loan.

Q.  Shouldn’t I get my mortgage from the bank where I have my checking and savings, they know me and if I have a problem or questions they’ll be there to help.

A.  In my opinion, no. Bank mortgage advisers are limited to the mortgage products their bank sells. They are not required to hold a Federal Mortgage License and because they work on a salary they may be inclined to sell you a mortgage product that works well for their bank but not as well for you . And that whole “we’ll be there for you”, isn’t reality. The chance  that your mortgage will stay with your bank is pretty low. Most banks will sell your mortgage to an investor in the secondary market shortly after you close on your home.

Q.  The Loan Adviser at my bank told me that they will be servicing the mortgage so doesn’t that mean that my loan will be there?

A.  Not really, it’s common for you to get your mortgage and then after closing you make your payments to another company—typically this other company or other bank purchased the servicing rights to your loan, but did not finance the full amount. The financing still came from the secondary market, an investor, whether from Fannie Mae, Freddie Mac, or another source. The investor pays the servicer for collecting the loan payments, but the interest income on the loan is paid to the investor.

As you move through the buying  process rely on your Realtor’s guidance and referrals, good agents have been through the process hundreds of times and their experience is incredibly valuable, so ask questions about anything you’re unsure of especially when it comes to finding a great mortgage lender.

If you’re thinking of buying in the Phoenix Metro area I’d like to help you find the home that’s just right for you and if you don’t have a lender I’d be happy to refer you to several outstanding mortgage consultants. Text or call me, 602-793-1627 or email Nancy@NancyLaswick.com

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