Internet vs Local Lenders

Angie_b_150 This is a guest post from one of my lending partners, Angie DiMauro. Angie has a no-nonsense take on the world of lending, and I thought that since lending often comes up as a hot topic on this blog, it might be fun to throw her into the mix.   – Diane

Time and time again I have heard horror stories from various clients/friends of mine who have gotten as far as the closing table using an online lender just to find that everything wasn’t what it was suppose to be.

For the first time home buyer this can be a nightmare. So many people have signed because they were at the end of their agreed-upon close of escrow date or would have lost the lock on the interest rate. Let’s go a couple of steps further. How about finding out at the closing table that the rate isn’t what was on the Good Faith Estimate or better yet there’s now a 1-3 year prepayment penalty…Yikes!

First off, let me tell you that a Good Faith Estimate isn’t (in my opinion) worth the paper it’s written on unless you have an approved rate lock confirmation and conditions list to know what you need to close the loan successfully.

Okay, now let’s talk about the local lender. Guess what? They could be the same as an online lender. You probably thought that I was going to rave about using a local lender being that I am one myself. Not true. You have to be careful out there.

The best way I think to protect yourself is to establish a relationship with a successful Realtor in the area where you’re thinking of purchasing. This Realtor will currently be working with local, reputable loan officers and knows who closes on time without any hidden cost or hidden agendas. Even if you’re refinancing it would still be extremely beneficial to make one simple call to a local Realtor and ask who do they recommend. He or she will probably give you a couple of different names and phone numbers so you can shop your loan and get the best program and rate that suits your personal needs.

Remember you’re the one in the driver’s seat or at least you should be. In this day and age with all the technology that we have at our finger tips you still can’t beat a live person who is a seasoned, licensed professional, has a conscience and actually cares about their clients. What a concept!

Angela DiMauro
Senior Loan Officer
Northern Nevada Mortgage Services, LLC
775-287-2743

4 comments

  1. Marc Amorelli

    Angela is right on the money… securing a mortgage is a complex process at best, and can be especially frightening for first-time home buyers. A seasoned, reputable Realtor should certainly be able to refer their clients to honest, straightforward Lenders, who will look out for their client’s best interests. It’s imperative that all buyers do their homework, to ensure that there are no surprises down the road. I personally prefer dealing with Lenders face-to-face: the lending process is much too important to leave it to an impersonal, faceless website. Dealing with Lenders personally can definitely result in a gratifying experience for all parties involved.

  2. Jeanne Lobel

    Anglea and I have worked together for the past 2 years. Her judgement and abilities are to be commended when closing loans.
    The lending industry has been under scrunity with a microscope for the past 5 years to no fault of its own. Trying to clean up bad Loan Officers and Lenders has been quite a challenge to decent Brokers, Loan Officers, and Lenders.If you think as a borrower you will be exempt from this, your not. All the cleaning up after bad loan officers and lenders in the past 5 yrs has been quite a challenge in protecting ourselves and borrowers. We have had alot to overcome, but I feel we are in the winning seat. Don’t ever bend to what you can’t afford. No matter if your purchasing a home, getting a home equity loan or doing a debt consolidation. Borrowers should never buy a home if they can’t afford the house payment and all the responsibilites that come with the Investment of your life. Setting borrowers up for failure is unexcusable in any light. I have found that if you treat your borrowers, co workers and lenders with respect and dignity no matter who, what or where they are financially, you will find the right loan,the right account executive, the right realtor and lender. It really is a FOUR way street. The mortgage industry has been the hardest career of my life, every loan is different and it takes time if the borrower has issues that need to be resolved on credit reports. Making sure that I have done all I can in getting a borrowers credit score up is a high priority in my everyday life in this business. I wish there were more Senior Loan Officers that could be as consistent in helping the public.

    Jeanne Lobel
    Senior Loan Officer
    Northern Nevada Mortgage Services, LLC
    Office: 775-828-4600
    Cell: 775-338-1771

  3. jkat66

    What’s the catch?
    I’ve noticed one of the local builders is offering no points, no closing costs and no payments for one year! Sounds too good to be true. Can you tell me what type of financing this may involve, arm, piggyback loan for downpayment, etc?
    Thanks

  4. Reno Ignoramus

    jkat:

    Haven’t you heard? This is the brand new Voodoo Platinum Goldclub Supreme loan. It’s the loan that does not have to be repaid. It is free money!

    As you probably know, housing prices have been dropping for 18 months now, and are predicted to continue their decline. This new loan has been developed by the mortgage industry to kickstart sales. And get commissions flowing again.

    All you have to be able to do to get one of these new loans is provide independent verification that you are alive. The mortgage industry got a bit of egg on it’s face last year when it was disclosed that some dead people were given loans. So now the industry is tighteneing up standards and requiring independent verification that you are not dead.

    But that’s it. So head on down and sign up!!

Leave a Reply

Your email address will not be published. Required fields are marked *