Finding The Right Mortgage Company:
Mortgage on your new property is one of if not the most important parts of the process. Having the right mortgage company could save you time, hassle, and grief at the closing table. Some mortgage companies might not even collect the right documents from you ahead of time, so you could be looking at houses that you aren’t even approved for. Could you imagine finding your dream home, falling in love at the showing, then finding out after you’re not approved? That is why finding the right mortgage company is so important.
Mortgage Companies And You:
Not every mortgage company is the same. It is important to do your research when you are in the market for a new home, or if you are a first time home buyer. There is underwriting, pre-approvals, deals for first time buyers, and much more involved when dealing with a mortgage company. Most people don’t understand or realize all that is involved or the importance of hiring a reputable company. We went out and interviewed a few different mortgage companies, as well as a few Realtors® and asked them about the importance of hiring the right mortgage company. And here is what they had to say..
From The Agents:
“You want to choose the best lender when buying a home because you want to make sure the lender is putting you in the right program. There are many lenders out there to choose from. The best thing you can do is choose the lender that has the best program available for what you are looking to do. Allow you may qualify for many different programs, a good lender will tell you about each program and the benefits of each program. It is important also to make sure you are not in over your head and that your mortgage payment will be within your budget. It never hurts to shop lenders. From experience, larger banks are harder to work with when getting a loan and the approval process. When you use a more private lender, they are easier to work with and have a shorter approval time. Large corporate banks can sometimes take longer and require more in underwriting. A good lender will also give you a pre-approval for the best program fit for you and the area you are looking to buy.”
Kristie U. Agent – Agent
“Probably best to deal with a lender that you bank with or have a history with. Compare rates and type of mortgages. FHA can let you put less down, but there are a few hurdles to jump. MSHDA is good for first time buyers that don’t have much cash—but you have to take a class. I’ve had a lot of trouble with Rocket, seems appraisals come in low. I’ve used John Adams, Prime Lending, Dearborn Fed CU & Flagstar with good results. It’s best to shop around & work with a reputable rep that you feel comfortable with.”
Patrick H. – Agent
“I personally look for someone that collects all of the potential buyer documents upfront before a potential buyer looks at homes. I use Mortgage One with David Mitchell, he is amazing. He collects all of the documents up front, so I’m confidentiality showing homes to someone that can actually buy one.
Benjamin W. – Agent
From The Mortgage Companies:
“We are brokers not a bank. We can shop rates for our borrowers because of this. Brokers generally have better interest rates and cheaper closing costs than banks.Three main types of mortgages: Conventional, FHA, and VA. Conventional is best for people with good credit. Minimum down payment is 3% for first time home buyers, and 5% for everyone else. FHA is best for people with sub-par credit, minimum down payment is 3.5%. VA is for veterans. 0% down payment, really cheap home insurance. Mortgage brokers also tend to close deals faster which is important when working on a purchase. Since the purchase agreements have expiration dates that are usually 30 to 45 days out from the day of signing. I also suggest working with a smaller local company to have more personable relationships during this process as opposed to working with a larger company like Quicken.”
Daniel S. – Loan Officer
“Brokerages are fastest and have the best rates besides banks. Banks are “traditional” mortgage lenders so the name is all they’re operating on. I’m not aware of any bank that can close in less than 30 days. Plus banks can fudge the rate provided you are willing to transfer funds to their institution, which is unacceptable. They should just give you the best rate regardless. Your loan officer can be the difference between closing on time and having a good experience, or closing 3 weeks late and having a bad experience. Loan officers who know their stuff and how their company operates will ask for items upfront that are not needed until later in the process. Many of these items require additional documents, so the officer asking for them earlier in the process as opposed to the time that they normally would be asked, will help you close sooner than expected.”
Michael M. – Loan Officer
“A bank will be tied only to their individual company policies and overlays above regulations or guidelines. A mortgage company will likely have multiple investors that they can get a loan bought by which will allow for the broadest possible outcome in terms of guidelines. Making sure that you choose the right company to work with up front allows you to work comfortably throughout what can be a stressful process. If you choose a company that can’t get your loan closed it doesn’t matter what the rate is. Most lenders are in the same range with 10% higher than normal and 10% lower than normal. The more you pay doesn’t always mean better, the cheapest is also not always the best or worst. You usually get what you pay for.”
Christopher D.– Loan Officer
In Conclusion:
As you can see from both sides, they both agree on the importance of hiring the right mortgage company. A mortgage company can make or break you in your home buying process, so making sure you have the right one on your team is crucial. Take your time to shop around and compare apples to apples. You wouldn’t want to be stuck with a 30 year mortgage on a house that is going to put you under water. If you have recently closed on your home and had great luck with your mortgage company, we would love to hear from you below.