Why picking the wrong lender can hurt you – Lake home buying tips

When buying a lake home you want to pick the right lender too.   I am going to explain why picking the wrong lender can hurt you.  Many of my clients pick the lender before I even see them.  I don’t care who you use so long as they are good and know what they are doing.  If you are satisfied with the rate and fees who am I to challenge that.  The key for me are they going to do the loan and get it done within the contract period.  Are they going to make it painless as possible for you the buyer?  Not all lenders are equal. Some lenders will run you through the wringer. The best advice I can tell you is: ask for referrals from friends, co-workers, family, and also from your realtor. Weed out the referral because it is a family member or friend that is in the industry. You want the referral from somebody that has used the lender. Not because nephew Joey works as a loan officer. The experience is what we are looking for.

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Lenders and banks sometimes go through phases where they are good or bad. They may have a help shortage that creates time delays. Sometimes they are at one time bad and now are good. Sometimes the big stodgy bank on the corner is a nightmare to deal with.

Over the years I have had clients call me crying over what their lender is making them do. I have seen just about everything. I have seen loans cancelled by lenders because of a change of course in their lending. I have seen many loans denied for good reasons. Some of the keys is a knowledgeable loan officer asking the right questions upfront to make sure the loan is truly qualified. A good knowledgeable loan officer can spot the problems up front and sometimes can figure out how to solve the problem before the underwriter spots it. So an experienced loan officer is a very big plus. Sometimes going to a big lender who has a huge number of loan officers answering the phone and not really know about how the whole process works can hurt you.

A good rate is good for you, but if you are stressed out or the loan doesn’t close it does you no good. I prefer to give my clients a few lenders to chose from. As a realtor we know who is good. We work with so many lenders. We see them up close and personal.

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Like I said it’s about both the loan officer that you initially deal with and their back room.  If the back room underwriting staff is slow or is going to drive you nuts then it may cause you problems.

When I talked about big banks they all differ. I haven’t had much luck with Bank of America lately. I had a deal about a month ago where the night before closing at about 8 o’clock at night my buyer and I were informed that the loan now was not closing the next morning at 10 am. Of course everybody was gone for the day so we couldn’t get answers. Things like that drive everybody nuts. Everybody is inconvenienced when something like that happens. I couldn’t recommend Bank of America to my clients at this time because of the last three deals I had with them were not smooth. We need companies that get the deal done with the least amount of problems for us and our clients. Whereas I am liking Flagstar Bank right now because their system and closing has worked for a couple of my clients lately. Like I said sometimes who we like and use changes.

So ask your friends, co-workers, real estate agent, or family on who they used.  That is one of the best ways to find a good lender. If you have several then you can shop the rate and fees because they do vary too. It doesn’t matter whether it is a lake house in Commerce or a home for sale in Troy be a smart buyer!

Russ Ravary your metro Detroit realtor!

If you have questions about buying a home feel free to call me at (248) 310-6239

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