Lisa Wells with CrossCountry Mortgage shares what to look for in a lender.
As Lisa Wells, branch manager at CrossCountry, can attest that homebuyers usually call up lenders and only ask basic questions like, “What’s your rate?” and “What’s your fee?” Those aren’t the most constructive, comprehensive questions, but people ask them because they really don’t know what type of information they should be gathering.
According to Lisa, the No. 1 thing homebuyers should be asking a lender right now is, “What is your process for getting me pre-approved?” Oftentimes, clients will get a pre-approval without truly understanding how much they’re approved for, or how much the fees, rates, and cash-to-close will cost them.
In her initial conversations with clients, Lisa focuses on the time frame of the financing process; right now, the market is hot, and people have to be able to act quickly. Her job is to give homebuyers the confidence of knowing that, when it comes time to make an offer on a home they love, they can afford it.
Buyers need a responsive lender that can provide a timely close in a market like this. Lisa is the loan officer that responds to my text messages at 10 p.m. when we’re in a multiple-offer situation and I need a pre-approval letter. She can close deals within three weeks, which is relatively fast given how swamped appraisers and title companies are right now (for reference, the average closing window has been around 30 to 45 days). A loan officer who isn’t doing everything in their power to move the process along quickly can quite literally be a deal breaker.
Sellers aren’t just looking for the highest offer, they also want to make sure that their buyer is pre-guaranteed, and the offer they accept has a closing guarantee. The Lisa Wells Team at CrossCountry Mortgage, for example, has a $5,000 close-on-time guarantee; if something on their end inhibits the loan from closing on the date specified in the contract, they’ll pay the seller $5,000 for the inconvenience.
Keep in mind that a buyer’s pre-approval is valid for 120 days. “A lot of times, clients will say, ‘We want to lock in our interest rate,’” she said. “Well, you can’t lock in your interest rate until you actually have a purchase agreement. We lock properties, not people, so you can shop around all you want up front, but no one’s going to be able to lock you in until the rubber hits the road, which is when you have an actual contract.”
What if you’re a homebuyer who wants to get a second opinion from your bank on interest rates, or some other variable? Will additional inquiries hurt your credit? According to Lisa, buyers are typically safe making multiple inquiries so long as they’re all within the same two-week window, and they’re all the same type of credit inquiry (mortgage, in this case). She encourages buyers to shop around for the best product and to never settle for something that it isn’t the right fit; ultimately, the best lending professionals do what they do because they love helping people.
“Don’t be afraid to show us what you have, because if it’s a better option, I’ll tell you,” Lisa said. “Then you should know and feel confident … but if it’s not [a better option], I’ll point out why it’s not, and explain what we’re doing versus what they’re doing.”
Borrowers can get the process started by applying online or calling Lisa and her team at 612-42-2752. A huge thank-you to Lisa for dropping by and helping us empower homebuyers! If you have more questions about purchasing a home or anything else pertaining to real estate, don’t hesitate to give us a call here at The McPherson Sisters Real Estate Team!
