Why a Mortgage Professional Beats a Banker Every Time -- The Story Tells It All

The best manner to explicate why a mortgage professional person is always better than a banker is to utilize an anecdote. My parents lived in the house I grew up in for 35 years, so it was finally clip to move. They establish a home they liked, made an offer, and signed a purchase agreement. After conferring with me, they decided to travel to a bank – one of the more than well-known mortgage banks in the region. Of course, I thought a good mortgage professional person would be better, and I told them I could follow the deal from start to finish, if they went with a company I previously worked for, but the bank they decided on offered a small better rate and lower fees, so they wanted to travel with them.

I told them to travel ahead, but I was nervous, knowing what I cognize about large banks, 1s that are not wholesale lenders, who work with mortgage professionals. After many trips to the bank (remember, bank loan officers don’t come up to you) that included plentifulness of fusses over paperwork, they agreed on a loan for their new home. The adjacent measure was to sell their house, so they could utilize the return for a down payment and moving expenses. My parents had over $60,000 in equity and wanted to set a good ball down on their new house and usage the remainder for expenses.

Since clip was against them – they had 30 years to pay off the marketer of their new home, and they didn’t have got an contiguous offer on their current abode – they decided to apply for a bridge loan (more on bridge loans later). This would take the equity from their current home and usage it to pay off their mortgage, leaving them enough money for the down payment on their new house. When they sold their old home, they would utilize that money to pay off the bridge loan. Here is where things got very dicey.

Their new lender offered 85 percent of the value of their home for the bridge loan. So, if the home appraised for $100,000, they would get $85,000. They assumed the value would be there. The bank sent an valuator on a drive-by, which intends my parents weren’t notified, and the valuator did not travel in the house. He then wrote up the value for the bank’s loan underwriter. Drive-by appraisals almost always come up in lower than the home’s existent value.

Now one of the three or four loan officers my parents were dealing with called and told them the value they would utilize for the loan, and it turned out to be about $10,000 less than they expected. This meant they would not have got got the money they hoped for, and they would now have to set less money down on their new home. This would, of course, lead to other problems – like a higher monthly mortgage payment and less money for moving expenses. They were, to state the least, devastated.

Being the proactive individual that I am, I decided to step in and phone call their bank. I spoke with one of the many loan officers (you see, you don’t have got just one individual handling you at a bank; you’re just another loan number). I had, of course, already done my ain research and learned that the value of my parents’ house should be much higher. I asked the loan officer to explicate how they came to this very low value. She fumbled through her reply and told me they utilize comparable sales terms in the country and that they don’t make a drive-by appraisal.

She said I would have got to speak to person in their equity department, because she didn’t cognize what other options there were. I was somewhat surprised at her deficiency of bosom knowledge with the bank’s policies, but I certainly wasn’t shocked. This is the nature of home loan trading operations at a bank – one individual go throughs the duty to another and only in rare cases makes one section really cognize what the other is doing. You’ll never have got this problem with a good mortgage professional.

After being channeled through another receptionist at the same subdivision office, I injure up speaking to an investment banker in the equity department. She told me that a drive-by was, in fact, done. I explained to her as I had the other adult female why the value was inaccurate. (I had very accurate comparable sales terms from different resources, given to me by one of the area’s best appraisers.)

I asked the equity investment banker if my parents could have got a complete inside assessment done to give a true value, and she said this was an acceptable option. In the end, my parents got the value they needed, and things worked out just fine. They needed a quality mortgage professional, though, to get it done.