No, your clients don’t need to choose a local lender any more.
What’s important is that a lender is licensed in your state and gives your clients personal service.
As you know, electronic signatures are now recognized as legal, so most of the time they don’t even need paper documents.
I know most agents do recommend local lenders – because many of the giant on-line lenders have given their clients dismal service. They get shuffled from one person to another; they’re quoted teaser rates that change after they’re deep into the loan; unexpected fees get added; calls are not answered promptly; closings get delayed; and on and on.
But independent Mortgage brokers who work remotely are just like your local lenders – they have a reputation to uphold and as independent business people, they have a financial stake in the outcome. They want to do their best for the clients you send – so you’ll send more.
A non-local lender can often give your clients better interest rates, access to more loan programs with terms that suit their personal situations, and lower fees. So before you decide it’s important for your clients to choose a local bank or mortgage company, look around. Find out if there’s someone a bit farther away who might do a better job and might be more agreeable to keeping you in the loop.
I’m thinking of some local lenders I knew when I was an agent. One transaction with them was enough. Two in particular stand out as “lenders from Hell.”
What does giving “Personal service” mean? It means a lender who:
- Is prompt in getting your clients pre-approved (NOT just pre-qualified) and who will put that approval in writing.
- Answers the phone or returns calls and emails promptly.
- Takes the time to answer your clients’ questions and explain anything that seems unclear.
- Takes personal responsibility for helping your clients – and doesn’t shuffle them off to someone else every time they call.
How do I know this?
I write for one of those “remote” lenders who has built a fine reputation in servicing clients all over the state of Texas. Real estate agents he has never met in person send him borrowers, knowing they’ll get personal service, low fees, the best rates and terms possible, and closings within 30 days.
Who is he? Mike Clover, of the Clover Mortgage Group at Homewood Mortgage.
If you’re in Texas, give Mike a call at 1-800-2232-7409.
He’d love to get acquainted with you.
More recently, I personally worked remotely with a lender…
She was local in that I could have gone to her office to meet. It is only about 20 miles away. But I didn’t. It wasn’t necessary, because she was readily available on the phone, answered my emails promptly, and kept me informed along the way.
Image of lady on the phone courtesy of imagerymajestic / FreeDigitalPhotos.net