Internet Lenders
Internet lenders. A good thing? A bad thing? Well I guess it may depend on your perspective. If it’s ONLY about pricing, then it doesn’t matter who processes your loan application or who funds your loan. The problem is that there’s a lot of ground to cover between filling out a loan application and getting the loan funded. Internet lenders spend millions of dollars attracting you to their websites and promising you the moon, but not necessarily delivering much of anything… except a loan and only if you fit neatly into their “underwriting box”. You can’t ever have a “real” question because there is no one there to give you a “real” answer. And God forbid you have anything out of the ordinary like a job change/transfer, credit problem, or a divorce. That would take some ‘thinking’ on their part, and it just may not happen. The ‘thinking’ that is. And remember, you’re not paying them to think.
The reason REALTORS put together “teams” and work with one or two (local) lenders is that when one of the many hurdles pop up, we can actually deal with it in a timely manner. We can figure out what the problem is together and come up with a solution (assuming there is one) together. Sometimes there’s a lot of interaction between the buyer/borrower and the lender during the transaction. Sometimes not so much. Part of this depends upon the borrowers level of sophistication. And by that I mean how many loans they’ve applied for and/or received in the past. The more familiar the buyers are with the process, sometimes the more prepared they are to resolve issues before it becomes one.
It’s not a bad idea to know what internet pricing is (and it should be lower, they have no overhead and provide no service) so that when you meet with someone local, you have an idea of what fees might be. But keep in mind, you actually ARE being provided a service and need to pay for it. Let me remind you that working with a lender your REALTOR already has a relationship with is key to a smooth transaction.
Happy house hunting !!!!!!!!
Wallace…
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