The Importance of Working with a Good Lender – by Sabrina
Buying a home is serious business; especially on the San Francisco Peninsula where even a one bedroom condo can run about half a million bucks.
And in an industry where time is money and money talks, from time to time I will encounter a lender – that offers great rates and low fees – upfront. And no customer service when you really need it.
Much too often a buyer is tempted to get the best rate – without really considering the whole picture.
Unless you are paying cash – the home loan is the most important aspect of buying a home – aside from the home itself.
So when taking into account that a home is generally the largest purchase of a person’s life – shouldn’t we work with a bank that treats it with the same respect? YES!
There are hundreds of steps from finding the home to getting the keys. The loan is probably the largest hurdle aside from home inspections.
Once a buyer’s contract is accepted by the seller – it’s rush time. Most offers have a time frame – called a contingency period – to have the bank do their appraisal and have the loan/purchase terms reviewed and approved by underwriting. It can be as long as 17 days in a buyers market – or as short as 5 days in a sellers market. And this is where we separate the men from the boys. Some of these out of state or on-line lenders are not located here – where one is buying – and it can be extremely difficult to get information and approvals done when they close shop at 5pm and it’s only 2pm here!
That friendly voice that quoted a buyer a fantastic rate isn’t calling us back anymore…..and when they do it’s often not what we were hoping to hear. For example, they need more time to review the file – therefore we need to push back the close of escrow date – which seems easy – but again – time is money. The seller is expecting the buyer to perform to the terms of the contract and it’s not worth losing a home due to a lackluster lender…..and changing lenders mid way is generally not an option.
So – what can a buyer do to be competitive? Work with a local lender. Once your credit is pulled the first time – a consumer has 30 days to loan shop without hurting their credit score. So do it! Loan shop the whole month and find the best rate, the best fees and make sure the lender is attentive, local and can move at the pace the current market is dictating.
The Caton Team has a list of Client Approved Lenders – so please reach out to us and we’ll introduce you to the team.
Got Questions? – The Caton Team is here to help. What can we do for you?
Email Sabrina & Susan at: Info@TheCatonTeam.com
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Thanks for reading – Sabrina