Your Mortgage Lender: The Difference Between A Good & Bad Real Estate Transaction

By: Eric Bramlett

As a Realtor and Buyer’s Agent, the most visible part of my job is searching for real estate, negotiating the property, and then contracting the property. Most people think that my job ends there. However, if I want to make sure that I continue to receive business referrals from my past clients, I have to make sure that every aspect of the transaction goes well.

Because of this, I have to be knowledgeable about every aspect of a real estate transaction: contracts, inspections, insurance, title, and most importantly, financing. The right financing can make a successful transaction, and a bad lender can turn a successful transaction into nightmare. I have long-standing relationships with many quality lenders – I’m highly selective about who I work with, and very wary about outside lenders that find their way into my clients’ transactions.

The Mortgage Brokers & Lenders who I know and trust make a habit of making promises, and keeping them. A bad mortgage broker will either choose to make no commitments to their client, or make promises that they have no intentions of keeping. Oftentimes, this has to do with interest rate – which makes a huge difference in a buyer’s monthly payment. Imagine contracting a home for a certain price that you were assured would mean a specific monthly payment, then being told that the price of the home was still the same, but you would pay hundreds more per month for the home. You wouldn’t feel that the transaction went well, and I wouldn’t receive business referrals from you.

Good Mortgage Brokers & Lenders create deadlines for themselves & the transaction, and they keep those deadlines. A bad mortgage broker will avoid making any commitments and will not respect your closing date. Buyers always assume that their lender knows and respects their closing date. However, when dealing with unknown lenders, I have seen bad lenders close 2-3 weeks late – and sometimes not at all. When asked why the transaction won’t close on time, it’s typically “due to underwriting.” This excuse is invariably used because the buyer & buyer’s agent are not permitted to contact the loan underwriter.

Good Mortgage Brokers & Lenders maintain an open line of communication and contact their clients regularly. A bad mortgage broker will “disappear” for extended periods of time and has no set contact schedule. Many times, there is little to no news to report. However, clients oftentimes need the reassurance that everything is still on track and that nothing is needed of them. Good lenders understand this, and they make sure that clients hear from them on a regular basis, from first contact to closing.

There are small differences between good & great mortgage brokers & lenders – lenders who attend closing, go the extra mile to make sure that their clients understand every detail of the transaction, etc… While a great mortgage broker can help to make your transaction great, avoiding bad lenders will help to make sure you’re happy at closing. The only way to make sure you avoid a bad lender is to use someone who has been referred to you and who has an established track record.


About the Author:
Eric Bramlett currently manages his Austin Real Estate Guide, his Tulsa Real Estate company’s website, & his San Antonio Real Estate Guide.

Read more articles by: Eric Bramlett

Article Source: www.iSnare.com