Things to Look For in a Lender
Do they offer a variety of loans ?
Are they local ?
This variety is important if you need a creative loan. For instance, if you don’t have much cash on hand, want to buy before you sell, or have a high debt-to-income ratio, you’ll need a lender willing to work with those circumstances.
Believe it or not, a lender in a different time zone can cause problems. Lenders have to meet certain deadlines and if they are late, settlement can be delayed by several days. Imagine questions arising at settlement at 9am or 10am EST, and your lender on the west coast is not yet open for business. Your lender is responsible for choosing an appraiser and might think that Richmond is close enough to Alexandria to use an appraiser based there. Local lenders are more incentivized to do an excellent job for you and your Realtor: They live in the community and want to please the client and their agents so they will send referrals. A local lender can help give you an edge in a competitive bidding war if the other Realtor knows and trusts your lender.
Do you like their personality ?
You will be working closely with them, so make sure there’s a mutual connection.
Do they work on evenings and weekends ?
This is a biggie! When we find the house you love and want to write an offer, your lender must step in with a pre-approval letter for that property with the address, offer price, and down payment amount to submit with the offer. We work with you on evenings and weekends, and your lender should, too. Responsiveness is key!
What ’ s their reputation ?
Do they have in - house underwriting ?
Are they experienced? Do they have agents and clients who can vouch for them?
This is not a dealbreaker per se, but it can certainly be very important. Here’s why: Smaller banks are typically better in the lending world. Big banks like Bank of America and even some credit unions, can be very slow-moving. Small, local banks are much more agile, can make exceptions more easily, and typically know everyone they are dealing with throughout the process. At a larger bank, your lender might have underwriters in a different state.
Are they creative ?
Some lenders can easily identify ways to get you to qualify for a loan. For example, paying off one credit card and closing another improves your credit score and makes you more qualified for a loan. Creative lenders can open the door to lower mortgages.
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