How to Choose the Best Lender

keep-calm-and-make-informed-choices-6Does it really matter what bank you select to buy a home?

 

 

The answer is absolutely!!! Choosing the best lender is critical to a smooth and easy home-buying experience.

There are a lot of different issues that should go into the decision of which bank is the best fit for you.

Too many home buyers choose their lender based on which bank offers the lowest interest rate.

That might seem logical but the truth is that it’s not possible for a lender to quote a rate until you have submitted all necessary documentation, 2 years of tax returns, paycheck stubs, and a current credit report.

The next step is that the buyer has entered into a purchase agreement to buy a home. This is the only way to lock the rate. Since interest rates go up and down almost every day, you won’t know your rate until it’s locked.

Here’s the truth and what every buyer should know.

All banks are not created equal! The ability to service your needs and deal with challenges that you might encounter are critical to a smooth, easy and stress free home purchase.

These are very important things to know: *These and more are questions you should ask prior to selecting your lender.*

  1. Where is the lenders’ underwriter located?
  2.  How easy is it to communicate with the lenders team?
  3. Will the lender cooperate with the listing agent?
  4. Is the bank you selected so big that your file is just a number in the system?

The lending world has changed a lot in the past few years and there is a lot to know!

The Dodd–Frank Wall Street Reform and Consumer Protection Act took effect in July 2010. 

This law has drastically affected the lending industry for the worse, in my opinion. Dodd Frank has made the loan process much more difficult. Consider for an example Bank of America: This bank is so large that the underwriters are located in Dallas, Texas. This can be an enormous obstacle in obtaining your loan in time to close escrow. It could actually affect the entire process to an extent that a buyer might lose the home they love. Dodd–Frank Wall Street Reform and Consumer Protection Act

The home buyer should know that you don’t have a lot of time to make the correct choices.

Here is my best advice:

  1. Choose your lender before you start looking for a home.
  2. Get fully approved before you start looking.
  3. Go with a local and direct lender!
  4. Once you have selected a lender don’t change.
  5. Go with a proven track record in the local market.
  6. Do your research.
  7. Go over all of your options before you start looking.
  8. These steps will save you time and aggravation. It is always better to be informed and up to date.

Remember the market changes very quickly and what is true today might not be true tomorrow. Choose your loan product, how much down, how long of a term. Etc. prior to looking for a home.
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If you are interested in a free, no obligation buyers consultation or listing presentation please contact The Barasch Group

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About Baraschgroup

The Barasch Group, Inc. is a professional Real Estate firm located in Los Angeles California. Michael Barasch has been the President and CEO of the company since its inception in 2003.Michael has made it his goal to change the public’s perception of the residential Real Estate industry and the Real Estate professional. He believes that education. Information guidance and counsel will empower the potential home buyer and seller to better understand the Real Estate process. Michael truly believes that a Real Estate professional in not a salesman, he is a financial adviser of hard assets. Michael is an award-winning agent servicing the Los Angeles area for over 15 years. He has been consistently ranked in the top 1% of all residential Real Estate professionals nationwide. He has been a guest speaker on numerous Real Estate panels, and he has been a training agent for many prominent Los Angeles area Real Estate companies. Michael brings his knowledge and expertise to help more people get informed, up to date and in the know!

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