Whether you are buying, selling, building or remodeling a home, it pays to work with a compatible mortgage banker — one who suits your needs and with whom you will be comfortable working during the process.
Many a mortgage decision has been predicated on price, but balance that component with the service you want and expect. What you want is someone who will get you to the closing table with the fewest problems.
Regulations in the new economy have added layers to the mortgage process, so it is worth taking the time to interview a few mortgage professionals to see who will listen well, set appropriate expectations and, most importantly, customize your mortgage solutions.
For example, many homebuyers may want to consummate the purchase of a new home while still owning their existing home. That buyer would need a mortgage banker who understands “bridge financing” and can structure both an interim loan as well as a permanent mortgage.
Or, if you are undertaking a significant renovation or ground-up construction, you must have a banker knowledgeable about construction lending and the “draw” and inspection process. Not all banks are set up for every mortgage scenario — or every borrower.
Because the economic landscape has changed so much in recent years, it is important now more than ever to do due diligence on the bank as well as the banker. There are independent firms such as BauerFinancial (www.bauerfinancial .com) or Bankrate (www.bankrate.com) that will tell you the health of the bank you are considering. A sick bank or one with regulatory restrictions on real estate lending is not where you want to find yourself.
There are a number of mortgage banking scenarios from which you can choose. There are standard banks — from the big-name banks to community banks. There are mortgage brokers who are not affiliated with a bank — though this sector of the market has diminished in the past few years, so you may find fewer of the stand-alone mortgage choices. With that market shift you will see more hybrid mortgage lending models in which a bank has partnered with a mortgage company or brought one inside. Don’t be shy about asking around and checking references on your potential banker.
And finally, be open to establishing a relationship beyond just the mortgage transaction. You may find the service and rates are improved if you are in a position to establish depository accounts and other financial services with the provider of your mortgage financing.
