Are You Working with the Right Mortgage Lender?
How to Tell when Your Mortgage Loan Officer isn't the Perfect Fit
Mar 9, 2009
The best mortgage loan officers act as trusted financial advisers. They help their clients successfully manage their biggest investment: their homes.
But for this relationship to thrive, homeowners must work with a mortgage loan officer with whom they feel comfortable, and one whom they trust. For first-time home buyers, those buyers who have never taken out a mortgage loan before, finding the right mortgage loan officer can prove challenging.
Fortunately, there are several telltale signs that borrowers can look for when determining whether they've started working with a mortgage officer who isn't right for them.
Your Loan Officer Doesn't Return Phone Calls
Because mortgage loan officers all offer the same basic product -- a variety of mortgage loans -- the best way for them to set themselves apart is through customer service. Those loan officers who provide stellar customer service tend to get the most business. Those who don't? They often don't last long in what is still an intensely competitive industry.
The best loan officers, for instance, return phone calls and e-mail messages from borrowers quickly. They don't make their clients wait days, or longer, for a return call or e-mail message.
Borrowers who find that their loan officers aren't responsive, should look for a new lender. No mortgage loan officer should be too busy to return phone calls or messages in a reasonable amount of time.
Your Loan Officer Pressures You into Products You Don't Like
During the height of the residential housing boom, many mortgage loan officers pushed interest-only loans on their clients. These loans, they argued, would allow homeowners to pay the lowest monthly mortgage payment possible.
That was true, up to a point. Interest-only loans, like adjustable rate mortgages, adjust after a set "interest-only" period expired. Often times, these loans adjusted to levels that were so high, homeowners struggled to make their monthly payments on time.
These loans become incredibly popular during the housing boom. The theory was that homeowners would refinance into more standard mortgage products once their interest-only portions expired and the loans were set to adjust. Problem is, when homes lose value, their owners can't refinance because they'll owe more on their homes than what they are worth.
The interest-only loan craze hopefully taught borrowers an important lesson: Loan officers should never pressure their clients into taking out loans that they're not comfortable with. The best loan officers will also refrain from suggesting gimmicky products like interest-only mortgage loans. Yes, loan officers can and should recommend certain products or programs. But they should never push a product that makes their clients feel uneasy.
Your Loan Officer is Vague about Fees
A trustworthy loan officer won't hesitate to provide clients with a clear, easy to understand list of loan origination fees.
This list will spell out exactly how much a loan will cost. That way, there will be no surprises at the closing table.
Mortgage loan officers who won't provide a list of fees are not to be trusted. Borrowers who work with them might end up with a pricey surprise at the end of their transaction.
Your Loan Officer Doesn't Treat You as a Top Client
Loan officers should put all their focus on their clients when meeting with them or talking with them over the phone. It's not fair for lenders to take calls from other clients, interrupt their clients to answer an e-mail or take a break in a meeting for a personal phone call.
Borrowers are making a huge investment when they take on the burden of a mortgage loan. They have every right to expect their loan officers to treat them as the center of the universe.
It may take time and research for borrowers to find the right mortgage loan officer. But it's crucial for borrowers to feel comfortable with the person who is handling what might be the biggest investment of their lives. By doing their homework up front, borrowers can help guarantee a smooth mortgage transaction.
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