How to Choose your Lender? Ask your REALTOR®!

Early in my Real Estate Career I had a new client who was starting the process in buying a home. I advised him that he should use a lender that was with a name-brand bank; with a local office. I even gave him a short list of Lenders whom I had met and was establishing relationships with.

I failed to be convincing and he used an "On-line" Loan company. He said this mortgage lender was saving him about $40 a month. Well that may not be a lot of money; but for a family - it can add up.

Still I strongly advised him to use a local - proven lender. He insisted his lender would be fine. After working through a difficult contract for 5 weeks - we were 8 days prior to closing when his lender told me there was a "problem". Well the "problem" was that their company was not licensed to lend in the State of Maryland. Moreover; there seemed to be no way that he would able to qualify for the loan. The numbers didn't add up - there was no way he could get the loan! The loan officer; um "made a mistake".

At this point my client decided to listen to me and contact the local lenders I had advised all along. It was too late. The deal died. There were no winners. No one got a home - no one got paid - no one was happy.

Since then; I have become a little more "Encouraging" when discussing which lenders to use when working on a purchase.

This is just one story of many I can tell about Lenders that have done less than an Excellent Job. As with any profession there are good Loan Officers working for good lenders and there are terrible ones. So how should a Home Buyer pick a Lender?

ASK YOUR REALTOR®!

A good Realtor has established relationships with good - trustworthy lenders. A Realtor has a lot to lose; like a Happy & Loyal Client along with a Sale; should the Lender not deliver the loan and terms promised. Any loan officer or mortgage company where a Realtor may benefit financially (either personally or through his broker); must by law be disclosed to a buyer in writing.

As a Realtor; I am always re-evaluating my list of "preferred lenders" that I recommend to clients. The Lenders I send clients to know that as long as they deliver excellent service to my clients - they will continue to get business from my buyers. If they fail to deliver - they will never get business from me again. They have a VESTED interest that goes beyond ONE loan or ONE payday for them. The lenders I recommend - are the same ones I use on MY personal mortgages.

A few more tips when choosing a Good Lender:

-Use a well-Known Company. This is especially important when negotiating with a seller. Listing Agents are VERY weary of 'unknown' lenders and it may cost you a home purchase (especially when working with multiple offers.)

-Use a LOCAL lender. They should have local office and understand your states laws and customs. If I can't drive to their office when an issue arises - I worry.

-If the lender won't put everything in writing - or you feel 'PUSHED' into 1 loan type; run the other way.

-Use someone you feel good working with. This is an important relationship - you need to feel comfortable working with the lender.

Lastly, as I said before; use a Lender that comes recommended!

Here is my list of Preferred Lenders.

Call James for all your Real Estate needs and questions; servicing Washington DC, Virginia and Maryland.

RE/MAX Allegiance - Georgetown
1720 Wisconsin Ave NW
Washington DC 20007
202-338-8900 Main Office
Licensed in DC,MD,VA