Okay, here’s the deal: you can find a lender pretty much anywhere. From your bank or credit union or from an online lender. The fact is that almost every mortgage company offers the very same suite of loan options. There are exceptions, of course, some lenders don’t issue ‘conventional’ mortgages but instead provide specific, niche-like offerings. These lenders are called ‘portfolio’ lenders. They issue loans targeted after a specific group and keep the loan internally until the loan is paid off.
Most mortgages issued today are of the ‘conventional’ variety. These loans are made by lenders who then turn around and sell the loan on what is called the ‘secondary’ market. Selling the loans frees up capital to allow them to make even more loans. Still, though, most mortgage companies offer the exact same loan. There will be differences in rates and fees, but loans are pretty much standard. So how do you choose the best lender? The truth is it’s the individual loan officer that makes the difference, not the lender. You can find a very competitive lender but if the loan officer is a bit lax, it won’t matter. What matters is the skill of the loan officer.
First, get some referrals from those ‘in the know.’ This means referrals from those in the industry such as real estate agents. Agents who refer out loan officers do so because they know the loan officer isn’t going to screw up a deal during the approval process. Get these names. Also, get some referrals from family and friends. When a few names keep popping up, you’ve got some solid leads.
A good loan officer has been in the business for a while. Not to say a newbie won’t make for a good loan officer, it’s just that you need all the help you can get and a loan officer with some longevity has proven their aptitude. You can’t be a bad loan officer and stay in the business for very long.
You want someone who stays in contact with you. Good loan officers are busy, but they can also have assistants who help with communication along the way. You also want someone you’re comfortable with. Sometimes it boils down to a personality thing and you want to work with someone who is responsive as well as knowledgeable.
There you have it: longevity, communication, and someone who ‘fits’ your personality.
