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Keep Your Lender Local
A recent conversation with Larry Morris, a mortgage broker with Integrity Lending and fellow blogger, led to a discussion about how we can best serve our clients in this Internet-charged, competitive real estate environment.
I think we both agreed that while consumers are becoming more informed than ever, and that while the Internet is a great enabler of information, it isn’t so hot at cultivating trust or providing individual, personalized attention.
From Larry’s recent post at www.pdx-mortgage.blogspot.com:
The Internet is a great source of information and the savvy consumer can get a great deal in many cases–often, at prices that your local business cannot compete against.
This is especially true with commodities, like consumer electronics, books, and clothes…
But what about mortgages? Are they really just a commodity? Is one mortgage just like another? Is the final product really all that matters? Is rate really the most important component? Can a company out of Texas provide just as good of a product or service as a local one? The answers to all of these are….maybe.
But not all mortgages are alike and not all mortgage brokers are alike. The wrong mortgage at the best rate can cost you a fortune. A good mortgage broker can show you why. An average one doesn’t even know what I’m talking about.
Despite the apparent ease-of-use of online mortgage programs, I counsel all buyers I talk with to work with a local mortgage professional. Many home buyers I talk to use the Internet-based lenders because they are convenient…. but only to a point.
Then issues like time-zone differences, inexperience with the local Portland real estate market, and timely communication become REAL issues…and, therefore, not very convenient. The personal relationships developed between a local real estate agent and lender can really keep a transaction together and on time.
Another value to having local lender, according to Larry:
After reviewing my business, I’ve decided to take it even further by making a commitment to my local clients to be at the closing whenever possible. Why should I put the burden on the Realtor or title officer to answer questions about the financing?
Right. As a real estate agent, it’s no fun explaining the lender’s fee structure to the client at the closing table.
But what about those great rates posted on the Internet, or the mantra, “Everyone wins when banks compete”? Most of the sites on the Internet that advertise mortgages are nothing more than lead generation companies. If you complete a form to have someone contact you, expect to be bombarded by lenders who pay anywhere from $150 for a live transfer to $5 for a 180 day old lead. Other sites post rates from different lenders who are paying a fee to get in front of you. They will often post rates that are inaccurate just for the hopes that you will contact them.
My advice. Use to Internet to educate yourself, and to get an idea of what you want. (But remember that what you have spent a few hours, days or weeks learning, a good mortgage broker has spent years doing.) Then ask around for a recommendation from your family, friends or co-workers. Or try your Realtor, insurance agent, CPA, financial planner, minister or other professional.
You need to weigh the cost of initial convenience with what will serve you best between what happens between loan application and closing.
If you’re a Portland-area buyer, contact Larry Morris at Integrity Lending by calling (503) 924-1438. At least you know you can bang on his office door if you need to. It’s hard to do that when your lender is only available by email or 800-number.
[tags] mortgages, loans, housing, local, referral, lender, broker, officer [/tags]
Photo by Askance. Used under Creative Commons license.
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[...] A recent conversation with Larry Morris, a mortgage broker with Integrity Lending and fellow blogger, led to a discussion about how we can best serve our clients in this Internet-charged, competitive real estate environment. I think we both agreed that while consumers are becoming more informed than ever, and that while the Internet is a great […] Read more… [...]