I received a call from an agent I work with the other day. She asked me if I remembered a client. Well in this case, it was a client I didn’t end up working with. As we worked through her figures she decided to go with a lender she had used on a refinance. So I wished her well and a month went by.
On her closing day, after she signed the paperwork, she pulled the Real Estate agent aside. She was perplexed and didn’t know what to do. She was under the impression that the lender she chose to work with was going to bring her a check ($495) for the appraisal fee. The reason was apparently the lender didn’t get the appraisal done in a timely fashion. On top of that she told the agent that she had to “buy down” her rate and it cost her an extra $1,800 in fees as well. So in all that is just under $2,300 extra in costs.
She didn’t know what to do or what she could do. Unfortunately for her, she picked the wrong lender. She was under the impression she was getting a better deal going with the other lender.
What could she have done differently? If you are comparing lenders to decide who to work with. You need to understand that rates and fees are going to be competitive. From there, you should receive a high level of service and education from the lender. They should be available as you need in this housing market. That doesn’t mean at 8PM, but they should respond in a timely fashion to your needs. You should be able to find them online. It is 2015 after all, so there should be feedback from others that have worked with them. Don’t select a lender alone on the fact that their fees appear lower. Or if you ask them can they match the deal, they automatically say yes. Truth be told, we have set margins which means we can’t negotiate. So if a lender is, then they are doing something against the regulations.
My team spends quite a bit of time educating and working on structure and strategy. We have a strong passion for the home buying process, and command of the contract to lead to on-time closings. Will my rates and fees be the bar none lowest out there. No, and if any lender tells you that they are lying to you. But if you are going to spend $200K,$400K, $600K ++ to buy a home shouldn’t you want a professional who guides you and you trust? Well if you ask this client, you may get a $2,300 answer to that question.
Keep this in mind as you are looking for your lender~