Dennis Norman
By: Dennis Norman
Today we pick up where we left off yesterday with my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. here in St. Louis.
If you missed part one, two, or three, there are links to both at the end of this post. And now, the final part of the E-View TM:
Q-This is a good time probably to address the Internet. There appear to be hundreds of lenders on the Internet for the consumer to choose from in addition to their local lenders.
Do you think there is cause for concern for a borrower in dealing with an Internet based company that does not have a physical location in their market? Or should they treat that type of company the same as a local company when checking them out to consider as their lender?H. John Frank, Jr., President, Paramount Mortgage Co.
A-When you deal with a local lender or someone you have previously dealt with, you can always go into their office and discuss the problems or hopefully a local representative will be at the closing to go over the numbers with you and correct any mistakes or changes that have occurred.
Q-I have heard many horror stories about buyers not being able to perform on their contract because of selecting a lender that ultimately could not deliver what they promised or at the last minute required additional information or items that were going to delay the process. Since a home is, for the average person, their largest single purchase it would seem they should be very cautious and selective about choosing a lender. What are your suggestions here?
a. How do you find a good lender?
b. What homework can a buyer do to confirm they have made a good choice?
c. What should they “look out” for or avoid in a lender or loan officer?
A- I believe that selecting a lender is the most important thing a home buyer can do. Reputation is the key. If a lender has been around for many years and people you know (friends, family, co-workers) have used them and have had good experiences with them, that’s the direction I’d lean towards.
Rates are surely important, but having someone you feel comfortable asking questions about the many pitfalls of the lending world, making sure the fees that are charged are typical and reasonable for the area, and feeling that your lender is honest is critical.
I believe that having your loan officer attend (and better yet perform) the closing is very helpful. Having a lender who brings their own money to the closing, so you’re not waiting for a wire from an out of town investor who may, or may not, deliver the funds for the closing is also critical. When you can look your loan officer in the eye, if something changes in the last minute, and ask him/her “why?” in very important.
This business is all about trust, honesty and looking out for our client’s best interest.
When you deal with an Internet lender, you’re just a ‘phone call’ and a title company closer is there to strictly go over the paperwork with you. They have no control of the numbers and no chance of changing them on their own. In other words, you’re on your own!
I want to thank John for sharing his knowledge about the mortgage industry and giving us this great insight and advice.
To contact John for help with your financing needs, or with questions, you can reach him by phone at (314) 372-4300, email at hjfrankjr@paramountmortgage.com or you can visit his company website at http://www.paramountmortgage.com/.
To read part one of this series click here.
To read part two of this series click here.
To read part three of this series click here.
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