Hold Your Lender Accountable-The Top 5 List

Other lenders don't enjoy my posts very often. They don't want you to know this stuff, or even think about it. They want quiet little consumers busily attending to their daily activities, relying on their loan officer to safely keep watch over what is likely their biggest financial asset. Huh?

More than ever, knowledge is power. It's pretty much a given that in today's world, the wrong mortgage loan can be pretty devastating. Please be careful and please make informed decisions. I'll cover this for you a bit down the line in this post.

There's plenty of regulatory stuff hanging around, enforcing the law for big banks on down the line to Johnny Joe Corner Mortgage, that causes these folks to develop a severe case of the yikes; here comes another mortgage zombie ready to rip off another piece of flesh! Yeah, that's painful and all, but who has empathy for guys that think they're suffering when they're down to only one new beemer and (gasp!) a now ancient 2 year old Audi? Really?

Good thing my car is 8 years old...hey, it still looks and runs great. Do you really care if these people suffer for all of the market issues that have contributed to one of greatest real estate debacles this country has ever seen? While the great majority of folks who do what I do are 100% above-board, and hate this mess as much (or more) than anyone, there are those (there are always going to be "those") who should be put in jail. Enough of that.

This post is for those who seek a good and honest loan; one that does what it's supposed to do. Yes, there are still loans that fit that definition; I do them often.

What should you watch out for? Even though the mortgage loan officer ranks have thinned considerably, believe me when I tell you there are still some mortgage idiots out there. People that have no more business transacting a loan with you than a kindergartner. Anyway, it's time to let you know what to watch out for. Here's the list:

1. Lenders and loan officers that manipulate the APR (Annual Percentage Rate). It's designed for loan cost comparison; it doesn't always work out that way. Here's a commentary that addresses this fun little adventure into APR-land.
2. Loan Officers/Lenders that provide inaccurate cost and/or rate estimates, just to get your business, then provide a different set of numbers when you get to escrow.
3. Lenders requiring you to be pre-approved by them when they own the house you want to buy. The excuse is they want to be sure your chosen lender knows what they are doing....when in fact it's an obvious marketing ploy. Do you really want to do business with lenders that practice organized crime? Tell them to take a hike.
4. Loan officers that are late for appointments, are dis-organized, that interrupt your meeting with phone calls, that provide mis-leading or false information, that provide inaccurate promises based on costs or time lines, that rely on "assistants" to do their job for them while they are out having fun....spending your money.
5. Finally, do some comparing and be careful not to focus too much on introductory on-line stuff, or on  lender fee and rate promises that just sound too good to be true. We all know how that turns out. Find an experienced lender that provides service. Not lip service; real honest to goodness careful attention to detail (the actual loan officer, not their assistant). One that provides advice based on what's best for you, not what's best for their own checkbook.

The simple fact is that all mortgage lenders have essentially the same money sources in these times. The real and true difference is all about the level of service provided. Does your loan officer have access to the modern and necessary tools to get the job done? Are they experienced and can provide real testimonials to the level of service they provide? Does this person transact business the right way? Do you feel that the combination of value and service (real service to meet your needs) passes the test? Are you comfortable with what it feels like?

I really put this post together by request. Many of my clients expressed that the current state of affairs in the mortgage business has left them at a loss as to what to do. Who to trust, what to believe, and simply what is going on and how long will it last? I respectfully submit that no matter what the atmosphere is, if you develop a relationship with a true professional, someone that you can trust, you will be well cared for and will end up with the right loan.

That's it for now. Until next time...