Shop Local... Especially For Your Mortgage
We have all heard the phrase "Shop Local". Have you thought about how it applies to professional services as well? Insurance, financial services and banking. What about mortgages? Recent experiences for my Buyers with larger, national and very advertised mortgage companies has resulted in very disappointing results. On the other side of things the local lenders are getting transactions done smoothly and and quickly.
Imagine it's a week out from closing and your lender is telling you "don't be married to your closing date". You have arranged the mover, packed the boxes and taken off of work. You can't seem to get past the phone system that doesn't allow you to speak to anyone directly and your not even sure where you are calling at this point. Email is ignored and you can't get answers. Then comes the request for the document that you sent them a month ago and you don't remember which box you packed it in. You get an email... your loan is in with the underwriter. I will let you know when I have an update.
Another 24 hours passes and nobody has reached out to you. The mover that you contracted with is all booked up for the next 7 days. You frantically are calling other movers and the one that should be doing your move is telling you that they won't return your deposit if you don't use them that day. The Seller of the house that you are buying is getting nervous too. They have a house to purchase and they are in the same predicament with movers too. Don't forget about the cable company and the utilities that you have made arrangements to turn on. Oh yeah, there's the washer and dryer that you are supposed to get delivered and the only painter that called you back. Your landlord is expecting to meet with you after you have all of your stuff out. They want to know when you will be giving back the keys. They already have a renter scheduled to move in.
Don't expect to here from that "TOO BIG TO FAIL" lender over the weekend because nobody comes in. The title company isn't able to switch settlement dates either because they are committed to other buyers closings. You're now sweating Monday because if you don't get a closing disclosure back on that date there is no way that closing will happen when it is supposed to. You have no idea how much you are supposed to bring a check for to closing. Your bank is telling you they need 24 hours to send a wire and you still will need to come into the branch. Fingers crossed you start to leave messages and sending emails to random people first thing Monday morning. Monday afternoon comes and it's crickets.
Then you get the email...
Hey, we are clear to close on your loan. Sorry, but we will need an extra day or 2. We will send over the disclosure for you to sign sometime later today.
End of email.
Please, I beg of you. Don't let this happen to you or someone that you love. There are plenty of local banks and mortgage companies right in your backyard. Get a referral from your real estate agent. They have a working relationship with people that do great work and close on time and when promised. Get your loan by shopping local!