Choosing The Right Lender
One of the most important decisions in home buying is which bank or lender to use for financing. Very often the bank you have accounts or auto loans with is not the best choice. Consulting your Foxfire Real Estate Broker is the first step in choosing the right lender.
At Foxfire we know which banks will loan on what types of homes (stick-built, log cabins, modular, double-wide, etc.); which banks are known to be speedy in closing on a transaction; and which banks use competent underwriters and appraisers and also those that will allow for appraisals to be transferred if for some reason a particular lender cannot produce the needed loan.
Banks vary greatly on the rules they apply to the structure of homes. For example, many banks will not provide a 30-year mortgage on double-wide homes. Others will if the double-wide is newer, and has a permanent foundation. Some banks consider a permanent foundation to be blocks and mortar around the outside, and others consider concrete or block and mortar piers underneath to constitute a permanent foundation.
Information such as this is important to know before wasting time and money on the wrong bank. Your Foxfire broker is the person who is “in the know” on matters such as these.
Some banks are preferred for vehicle or personal loans but should be avoided when it comes to mortgages. Some banks are encumbered with self-inflicted red-tape, or assign loan officers who lack the necessary knowledge and skills to see a loan through to closing.
A good lender should be able to go from start to close in 22-30 days on a home loan, regardless of the new and ever-changing banking rules. A good lender is providing not only timely service, but the lowest interest rates, and the most inexpensive fees. Which banks can deliver on these criteria? —Ask your real estate broker.
The appraisal process is where many buyer and seller dreams are smashed, contracts fall through, and both the buyer and seller end up losing money.
Some banks have a list of appraisers in which they randomly assigned to a home, and others more commonly use an "appraisal management company" which chooses from a list of appraisers for the bank.
Neither the buyer, the real estate broker, nor the loan officer can choose a particular appraiser due to banking laws, but your Foxfire broker can certainly advise as to which banks or lenders continually use notably bad appraisers.
The buyer pays for the appraisal, thus its disposition should be up to the buyer alone. If a lender fails to come through with a loan, and the buyer wants to proceed with a different bank or lender, then the lender that ordered the appraisal should release it to the other lender in order to save the buyer from having to purchase another appraisal. This is an important question to ask a potential lender before engaging their service. Your real estate broker can advise you as to which banks do not allow this, and thus which ones to avoid.
Once the right lender is chosen, that lender should be communicating regularly with your real estate broker and the closing attorney in order to ensure that the loan proceeds with a few issues and all haste as is possible.
Most real estate brokers have a vast amount of experience with lenders, good and bad alike. While no real estate broker can make a 100% guarantee regarding the use of certain banks and lenders, your Foxfire Broker certainly serves as one of the best tools in your arsenal for making an educated choice for financing.