Lenders Are Not All Created Equal
Alice Roe of US Bank spent quite a bit of time on the phone with me today after yesterday’s blog post. Alice lives in Arizona but specializes in Alaskan loans. She straightened me out on a few things.
First, I was wrong that a mortgage broker’s compensation is not disclosed. Alice said that it is disclosed on the settlement statement but often no one pays any attention to it because it is not shown as a cost to either the seller or the buyer.
She also pointed out something very important that I should have spent more time on.
That is the fact that it isn’t so much the amount that your lender is paid, but what they can deliver to you that is important. Loan professionals are not commodities. By that I mean that they are not all created equal.
For example, pork bellies are a commodity. If you invested in a shipment of pork bellies from the Chicago Mercantile Exchange, hopefully you would sell them before you actually took delivery. But if you couldn’t get them sold in time, you should be pleased to know that the 20 ton shipment of pork bellies delivered to your front door meets all the qualifications of every other 20 ton shipment of pork bellies. It’s a commodity that you can count on.
It isn’t true that one loan professional is the same as the one in the next office. Some have more experience and can find a good loan for you when others might not. Some will think about the fact that you know people, who know people who will send their friends to them if they treat you right. Some don’t really care and only are interested in the fact that they can make money if they get you a loan.
You should find a lender that can really help you. Ask your friends, ask your Realtor, ask your family about people that have helped them find a good loan at a fair price.
Or course Realtors are not commodities either. If you are looking for someone that will listen to you and not just try to sell you something give me a call (907 232–7900), or drop me a note.