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Ivan Diaz

Choosing a Great Loan Officer

Sunday, October 14, 2012 - Article by: Ivan Diaz - - Message

In the mortgage industry, most consumers shop rate sensitive not knowing what's higher on their priority list: Rate, Product and consider all upfront cost. A Great loan officer will guide you to making the right decision. Here is what you should expect:

Great Rates-

- Most lenders have similar rates...Some lenders may be overwhelmed with application volume and price their loans .25%-.5% above your Regional Mortgage Bank.

- Shop a rate too long and you might miss out.

Get you in to the right product- Save money long term!

- Whether you refinance or purchase....There are many programs out there beyond a traditional 30 yr fixed and FHA. There's a reason why our rate sheets are 18 pages long, not every client is identical to one another. One example would be: 5% down Conventional program vs 5% down FHA. Each product has distinct advantages and savings over one another yet I rarely see both options offered. The savings over the first 5 yrs are significant...Choose wisely.

Manage the process and your expectations- One time Review = Less Stress

-There are Mortgage Consultants and there are Loan Officers who take applications. Both titles are the same just different results. Part of the frustration with mortgage consultants/lenders is sometimes we don't manage the process and your expectations to the highest standard. Typically there is an initial list of documents needed to properly be qualified. Once packaged, a processor will usually tie in the loose ends by adding a list. After underwriting has reviewed it, that department will most likely ask for another round of documents/conditions. A great loan officer will anticipate which documents will be requested. A not so good one will blame their processing for delays!

Save time and money up front!

- Did you know there are shorter lock times? 10 day locks, 30 day, 45 ..etc. Shorter locks are usually cheaper by .25% in price (not rate) of the loan amount. Do the math, it makes a difference. Having said that, lock management goes hand in hand with managing the process and shopping a rate. I do not recommend floating a rate to save on a shorter lock. Rates are just too volatile and we are one day closer to higher rates.

In the 6 yrs I have originated loans, I can honestly say that the Mortgage industry is "Very" complicated and is always changing. Guidelines and Lender overlays further complicate and the grass isn't always greener on the other side. My advice to those shopping for a lender: If you ask your loan officer enough questions, you will get a good feel of competency. If you feel comfortable...then stick with him/her.

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