There are three people that you want by your side when you buy your next home in Louisville: a great home inspector, a proven Realtor, and a knowledgeable local lender that cares. These three people need to be your expert, your proxy, and your adviser throughout the home buying process. Blindly picking them without doing your own due diligence will create problems for you down the road. Since the financing portion of the home buying process determines whether or not you will even need a Realtor and a home inspector, let’s talk about how to pick a mortgage lender that will service your specific needs.
Lender vs. Bank
You most certainly have a bank where you deposit your earnings. It may even be a local bank. At some point someone at that bank will tell you of all the great loan programs they offer and how much they can save you since you already do business with them. Don’t be fooled by the “closing cost waiver” and other carrots they may dangle in front of you. If they lead off with a discount, they’re selling you, which means that they aren’t necessarily good at mortgages, but instead good at sales. I have found that banks are not that great at mortgage loans, but that there may be specific individuals at certain banks who are great. See, banks offer numerous different services to their banking clients, and mortgage lending is only a small portion of these services. A mortgage lender, on the other hand, provides only one service: lending money to you for the purchase of your home. Does this mean that all Louisville mortgage lenders are good at their job? Absolutely not. It does mean that this is the only service they provide day in and day out, so the really good ones have it down to a science. I’m not saying that you shouldn’t use your bank. I’m simply saying that if you are thinking about using your bank to finance your Louisville home, you will definitely want to meet with a lender for a second opinion. You owe it to yourself to make an educated decision.
Communication is Key
Notice that I keep saying “local lender”? Local is very important. There is nothing more frustrating and more detrimental to communication than straddling time zones. I once worked with a client who used a lender out of Utah. It was ridiculous. The client and I were both in the dark half the time, then all of a sudden we were surprised with a closing date out of nowhere. There are so many moving parts to a mortgage loan that you and your lender both need to be available at reasonable times to discuss what’s happening and what’s needed. Being in the same time zone is helpful. Local lenders and banks also know the local customs and general practice for processing a loan. Techniques and such differ from state to state. Your lender should have a set communication schedule with you so that you know what’s happening with your mortgage. Some weeks it may seem like you speak with your loan officer daily, other weeks might be less, but there should always be at least one day set aside to touch base. Make certain that your loan officer will keep you informed.
Another reason why you should get a second opinion is that some lenders have special programs that may just be perfect for your specific needs. Most lenders and banks are looking at the same rates, but income requirements, credit requirements, and down payment specifications differ in some cases. Certain programs allow you to buy a home with zero down payment, other loan options depend on which county you’re in, and still others can be specifically tailored for someone with more money and less credit. There are plenty of options available, and mortgage lenders typically have access to more creative programs than banks. Either way, you want to make sure that your loan officer is asking all the right questions when you meet them. They need to know about everything going on in your life, and what matters most to you in the financing of your next Louisville home. Once your loan officer knows your story, they should educate you on the different programs available to you, and explain the benefits and drawbacks to each of your options. Loans are difficult to understand, education is a must.
Plan of Action
If for some reason you don’t qualify for any loan programs at the time, a good loan officer will help you understand what needs to be done so that you can eventually buy a home. They should be able to come up with a plan for you. If they tell you that there’s nothing they can do for you, then you don’t want them on your home buying team anyway. You need someone who is on your side that will walk through the entire process with you whether you qualify now or one year from now.
As a Realtor, I have worked with the best of the best, and the worst of the worst. Here are some of the best lenders and mortgage bankers in the city of Louisville:
Jason Hanson – LPK Group at Primary Residential Mortgage
502.648.6117 – firstname.lastname@example.org
Chip DeBardeleben – Statewide Mortgage
502.295.8138 – email@example.com
Jeremy Wetzel – Cross Country Mortgage
502.4197860 – firstname.lastname@example.org
Thinking about moving to Louisville or relocating within Louisville? I would love to speak with you about your next home – 502-509-9278 – email@example.com