Depending on the severity of your house fire you may need to purchase a new home … or following completion of the repairs you may want to refinance your house.
One important consideration that many people don’t pay appropriate attention to is the selection of the mortgage banker for the deal.
The truth is the selection of a mortgage banker is extremely important to getting the best deal after a house fire.
In fact, if you select the wrong one, you could be paying for the mistake for the next 15 to 30 years.
Why Selecting the Right Mortgage Banker is so Important
Selecting the right mortgage banker after a house fire is important for a number of reasons, including:
- Your mortgage banker controls the purse strings and is responsible for getting you the loan amount you need
- Your mortgage banker’s level of service and responsiveness often determines whether you are a happy homeowner or a disappointed would-be buyer who just missed out on their dream home or dream loan
- Your mortgage banker helps you get a good interest rate
- Your mortgage banker is responsible for ensuring the whole process goes smoothly and your loan is closed on time.
Select a bad mortgage banker and you could miss out on a house or an interest rate because he or she didn’t act in time or you could find yourself paying a number of questionable fees.
But Aren’t Mortgage Bankers Even Worse to Deal With Than Used Car Salesman?
Over the years, mortgage banking has become something of a distained profession.
Actually, there was a report recently where mortgage bankers were ranked below used car salesmen on a trust and likeability scale.
However, there are mortgage bankers who strive to be as transparent as possible with their clients. The biggest reason mortgage bankers have become so unpopular is due to image.
Mortgage Bankers are in Desperate Need of Image Rebranding
Remember when McDonalds was being “accused” of making American kids’ fat? Well, they changed their menu and added scrumptious salads, fresh milk and fruit. They in effect rebranded themselves.
In a similar vein, mortgage bankers need to do something similar. Most mortgage bankers are caring professionals.
Many have found their way into the profession from other financial services jobs like accounting and commercial banking.
Long gone are the days when mortgage banking was all about order taking. Now it is about listening to the client and helping guide them to their end goals.
Also long gone are the days where a mortgage banker was a bartender on Friday and selling mortgages on Monday. The field just doesn’t allow for this anymore. The business is too difficult and those folks have moved on.
Over the Past Several Years, Two Things Have Happened
- The guy or gal who joined the profession to make a quick easy dollar moved on. The truth is tending a bar is often more lucrative for most folks than mortgage banking.
- The folks who just weren’t that great moved from the smaller shops to the relative safety of the big banks.
Today, your friendly neighborhood mortgage banker is a hard working, highly educated individual who can provide much needed objective advice to his or her clients.
So What Should You Look for When Selecting a Mortgage Banker After a House Fire?
- License – In order to originate loans it is a federal mandate to have a license through NMLS. There are various requirements a Mortgage Professional must meet in order to register with NMLS. The originator must be licensed in each state where they are conducting business. They must also hold the Federal license. Your mortgage professional should be easily able to communicate their NMLS ID to you. It should be on all correspondence you receive from them, including their business card.
- Industry Knowledge – Ask your mortgage professional what type of loans they offer that are suitable for your situation. Most professionals out there today know every program that is offered. They may not offer it but they are aware of it. If they do not offer you a product you think meets your needs ask the lender why.
- Responsiveness – Ask your mortgage professional what kind of access you will have to them. Typically, a professional returns a call within two hours. This may be personally or by another member of the office staff. If you expect to have access 24/7 it probably isn’t going to happen. A good mortgage professional explains everything upfront. They should be able to explain in detail all the disclosures you receive. They should review the final settlement numbers with you a minimum of 24 hours before settlement. If your settlement is at a convenient time and place the mortgage banker should attend. Remember, some loans do close at 10 p.m. at a truck stop because that is what is most convenient for the client.
- Reputation – The mortgage lending business has changed for the better. Folks who were shady and not “customer-centric” have left the business. The best referrals come from family and friends who have had good experiences. Listen to them. If someone tells you they had a bad experience find out what went wrong. Don’t discount the mortgage professional involved. When you listen to folks sometimes you will find that they had “expected to fail” and their expectations led to exactly that.
- Community Familiarity – You should look for a mortgage banker who is familiar with your community. It doesn’t have to be someone you see in the grocery store buying cabbage, but it should be a person who has an office that you can easily visit when you have questions or concerns about your mortgage.
- Trustworthiness – Maybe most importantly, you must find someone you can trust! Find someone that listens and someone that can provide real world results. Don’t believe everything you read, question the facts and find some solid footing. Your home and your family is probably what you are working for. Don’t trust it all to someone you have never even met because they gave you the cheapest rate quote.
Sell Your Fire Damaged House
Before you engage the services of a mortgage banker, you need to put your fire-damaged house up for sale. One of the fastest and easiest ways to sell a fire-damaged house is to sell it in as is condition to We Buy Fire Damaged Houses.
We pay all cash so you can get your money fast and get that new house that you have your eyes on. Fill out the form below to learn more.
Photo by Tierra Mallorca on Unsplash