Many Do Not Call Back
J.D. Power has found that 21 percent of homebuyers regret their choice of a lender. That in itself is regrettable. But this significant minority might have been able to avoid many of their issues if they had been more careful in picking who they worked with for financing in the first place. Whether dealing with a loan officer who works for a lender that actually funds its own loans, or a broker who works for himself and deals with more than one lender, you should expect him to be responsive, according to the Consumer Financial Protection Bureau, the federal watchdog agency that grew out of the recent financial crisis. Being responsive is a key trait.
But according to a recent survey of some 800 companies by Insellerate, a provider of support services for the marketing and sale of home loans, it took an average of 12 hours for loan officers to answer a client’s query. But that’s just among those who responded. A whopping 57 percent never responded at all, the survey found. And 60 percent of those who did respond failed to follow up with a second call. You also should be provided with a clear analysis of the different loan options that are available, along with an understanding of how they impact you financially, both initially and over time. Even more importantly, you should expect that the choices be explained in a way you can understand.
Choosing a home loan is possibly the biggest financial decision you will ever make, so if you ask for a simple explanation and you don’t get it, ask again and again until you are certain you understand. It’s also wise to make sure what you choose is suitable to your lifestyle and financial picture. Many loan officers qualify people for the biggest loan they can afford. But while there’s nothing wrong with that, you may not be comfortable forking over that amount every month. On the flip side, if you fail to send a piece of requested information, you should expect the officer to hound you for it, or at least be persistent in asking for exactly what the underwriters need to approve your loan.
Source: The Housing Scene, Lou Sichelman
Note: These findings emphasize the importance of working with an expert mortgage advisor and a reputable company to help you with one of the most important financial decisions you will be making.