North San Diego County Real Estate News

Hiring the right team when buying a home is essential in getting the best home and the best loan for your situation. Finding the right lender is where the home buying process begins.

Several years ago I was refinancing my home and I went to the Escrow Company to sign my loan documents. I was so fortunate to have an Escrow Officer that took the time to go over the closing statement and answer my questions regarding the charges. What the Loan Officer quoted me for lender fees he was actually double, when compared to the closing statement.

Another concern for buyers and their agent is selecting a lender that over promises and under delivers. In some transactions there is a per diem fee if you do not close on time. In one case a buyer decided to use his own mortgage broker because he wanted to help out a friend. The lender under further investigating had never closed a loan and it cost the buyer $3000 in extra fees for being 30 days late in closing.

In most Residential Real Estate transactions the seller and the buyer are represented by their Real Estate Agent. In those situations, there is a fiduciary relationship created that requires the agent put the client's interests above their own.

There is generally no such relationship between buyers and lenders. Some of the housing crisis issues may have been avoided had the lenders been more concerned for the buyer's best interests.

The following are a few warning signs that should cause a buyer to do much closer investigation:

Claims that bad credit is not an issue
Prepayment penalty
Larger than normal loan charges
Rate gouging by brokers
Loans without escrow accounts for taxes and insurance
ARM loans that only go up and not down
Initial loan to secure property with plan to replace it later

As a real estate professional, I can recommend a lender who is experienced in your market and has a history of providing good service. A real estate professional can be a good intermediary between you and the lender.

Respectfully,