Okay, the last secret I told you about was how to compile a credit and income package for a lender so you could get accurate quotes and pre-approvals. Now, I'm going to tell you how to shop for the right loan originator.
I have always stated that you should be shopping mortgage consultants not loan programs but this double-barreled article will help you do both. Understand this first. You are NEVER going to get the absolute best rate offered on a home loan; it's impossible to determine what "best is:
Instead, you should be shopping loan originators. You should spend some time online and on the phone getting to know the originator before you give her a copy of your "credit" package to receive a quote.
You should get a list of 5-6 loan professionals and spend 10-15 minutes on the phone with them. Where do you find these people? Here are some sources for "leads' on good loan originators:1- Call Brian Brady immediately 858-777-9751! Okay, I'm sort of kidding but I can be a source for you because you have enough interest to read my article this far. My point is that you've already met one originator online.
2- Ask your Realtor for a loan originator whom she trusts. If you don't have a Realtor, yet, use that as leverage in your hiring process. Explain to the 2-3 Realtors you're interviewing that you consider their recommendation of a loan source to be an integral part of their service offering; you'll get a great response.
3- Go into your local bank and tell the teller that you are thinking of buying property. That teller gets paid $25 to refer their in-house mortgage salesperson so he'll be all worked up.
4- Call your CPA or tax preparer and announce that you need a home loan. If the CPA offers to help you with it, get a new CPA. There is a growing trend among tax professionals to provide financial services like mortgages and investments. I can't speak too intelligently about the investments side but there are two problems with CPAs offering home loans: (a) they offer horrible advice. (b) their inexperience usually ends up costing more.
5- Stockbrokers and financial planners are usually good sources. These guys understand investments and leverage so they know a few of us who can integrate your mortgage into your financial plan. I have found that when I work with a stockbroker, the client gets great advice and a loan that makes sense. if you don't have a stockbroker, ask the richest person you know for a name (I'm not kidding about this). Some stockbrokers offer mortgages; again, stay away from that for the same reasons as CPAs.
6- Ask someone who owns more than one property who their mortgage gal is.
7- Ask a small businessperson (with whom you're friendly) who their mortgage source is.
8- Ask your brother or sister (or cousin or parents).
Cool! Now you have a list of 6-8 mortgage originators. Should you print off your package and send it to them? Should you e-mail each of them and ask for a quote? Hold on, amigos ! Remember I said to shop for loan originators and not loan programs? The loan terms shopping comes after you've isolated 2-3 originators with whom you want to do business.
My next article will tell you how to interview an originator in 15 minutes or less and be certain that you have the right people.