On a tangent, It's interesting to see the answers to the "shop for rates" mentality now (some posts below) vs five years ago before regulation in our industry went into overdrive.
For those agents "still" advocating your borrowers shop lenders to death, keep in mind, NAR's influence will one day wane and you will have people writing similar articles about shopping you for the lowest commissions. P
Something I just chuckled about... A small savings over the life of the loan (let's say 0.125% in rate) vs a big up-front chunk of money (the "un-shopped" part of your commission) compounded annually for the life of the loan also adds up to a big chunk of money, some food for thought. =)
Having said that, I don't think the sole decision factor should be the rates. Of course they are important, but you should also consider how you feel about the person. Buying a home is usually a stressful process. The last thing you need is to have to deal with someone you don't like.
By the way - I would give the same advice if you were asking about real estate agents. I believe it is in the client's best interest to shop around until he finds a good one.
Jose Dias, REALTOR | (623) 418-5700 | Jose@MyFirstHouseAZ.com | http://www.MyFirstHouseAZ.com
Shopping around banks is like comparing walmarts in your town to the next. The difference maybe pennies if any. Lets be honest, banks are governed all by the same agencies. All you would do is waste your time looking unless your comparing lenders wich are different than banks.
What matters is the person your are dealing with. Are they knowledgable, experienced and truly care about you and your financial ability for the now and the future.
It is always good to get to know your Mortgage person and or Realtor. Do they work as a team for a common goal which is thier clients needs? Ask questions, ask for direction and ask to meet.
Rates, fees and terms are important unless you are into a specialty program or niche product.
Once you have made up your mind, be prepared to move forward and be committed to the process and your team working for you.
For a personal detailed conversation, please contact me at 480-783-6798 or e-mail me at Manuel.Amaya@BBVACompass.com.
BBVA Compass Bank
Your loyalty is to be admired, but your bottom line - and what you will pay over time - needs to be your primary consideration. The time to "stick with your bank" is only when they 1) offer a competitive rate AND closing costs and 2) offer excellent customer service during the entire loan process. Will they give final approval and get your documents done so you can close on time? The answer to this question is critical.
You'll find personable loan officers at nearly every bank, credit union, and mortgage brokers... they are the people who meet with you initially to take your information and get you pre-qualified for a mortgage loan. But that "initial nice person you meet with" is only step one - and that person has very limited control over what comes next. There are many people and departments involved in the loan process, and if your loan isn't handled properly and efficiently every step of the way, through closing, it can be a nightmare.
Best advice? Ask your Realtor for recommendations. Which lenders are giving the best deals and the best customer service? Ask a title company... which lenders seem to get things done right, on time, over and over? Then get your loan quotes - and be sure to compare closing costs, which can vary greatly.
A little extra time spent in the comparison process will be rewarded many times over. Good luck!
And how do you know who is going to close a loan until they either close it or don't close it? In the meantime, all you have to go on is reputation, rates, and fees. That's my humble opinion, anyway.
Brian Cardenas, Sr. Mortgage Banker
AmeriFirst Financial, Inc.
NMLS # 183143