I had clients recently who began their home buying process with an 800 number / internet lender based in another state. The online lender asked for authorization to check their credit, and multiple inquiries began appearing that actually damaged their credit.
This story has a happy ending. The Colorado Springs based lender they ultimately used got the issue squared away. They were able to close on time on their new home and are quite happy now.
However, this leads me to the next part of this article. It might not have ended so happily. We recommend you use a reputable, local lender, for the following reasons.
1. Make Your Offer Strong
When you write offers, the lender letter that goes with the offer matters. A listing agent who has had bad experiences with the “800 number” lenders may advise their seller to accept another offer that is backed by a reputable local lender as a result. This is becoming even more important with the tight inventory we have. Well priced clean listings can generate multiple offers in Colorado Springs these days.
2. Make Sure You Are Closing
Long distance lenders are notorious for not asking enough of the right questions, leading to problems in the underwriting process. With rule changes occurring constantly, you want someone who you can count on to stay on top of these changes and get the job done once they say they can do it.
3. Have Rates and Fees That Are Competitive
Long distance lenders like to advertise heavily with low rates, but it is important to remember that rates are fees are relative, and competitive. It is very seldom one of our local lenders can’t meet or beat the complete package when rates and fees are considered together.
4. Are Accountable
A long distance lender can just shrug their shoulders over the phone and say ‘oh well’ when a loan ends up denied. Local lenders, on the other hand, are accountable face-to-face to you (the borrower) as well as us (the agents involved). Reputable local lenders don’t become reputable by issuing pre-approvals for ‘just kidding’ loans. When they say they can do a deal, they do it. Sometimes they have to go to extraordinary lengths to make it happen, but they get it done.
Need a reference to a Colorado Springs area lender with programs that might fit YOUR needs? Call Rick Van Wieren at 719-331-7675 and let’s discuss your situation. We’ll suggest lenders that best fit your needs.