The Importance of Local Lenders
Today, I want to talk about the importance of working with a trusted, local lender.
First, let's discuss what this means as far as getting your offer accepted. In this kind of crazy market, one major factor that a listing agent and seller will look at is the strength of the lender. Quicken, AimLoan, Bank of Kansas City?? Forget about it! Working with people from anonymous banks across the country is asking for problems. The listing agent wants to make sure they have good control of all the key players, especially the buyer’s agent and lender. We can usually tell within the first 5-10 minutes of a phone conversation with a lender if they’re going to be rock solid or a complete nightmare. Typically, when we encounter problems in the middle of an escrow, it's because there is a problem with the loan for different reasons. And that’s why it’s critical to have someone that knows their stuff, knows what SF is about, and can be counted on to take care of any issues that come up.
If you're getting a loan, you're frequently competing with a high number of all-cash offers, or at the very least, other qualified buyers who are getting loans as well. So in order to stay competitive, not only do you need to make it up in price, but you need to find a lender that can remove the financing contingency in 7-10 days and close in 15 days. Remember, all-cash offers have NO financing contingency and can close in 3-5 days (depending on what they do with inspections). In San Francisco, any good listing agent will call the lender to ask them questions and make sure they're on top of things.
Secondly, let's talk about why having a skilled and responsible mortgage broker should matter to you. Not only are you buying a home, you're buying a very expensive financial product -- a mortgage loan. So not only should you shop around, but you should also make sure the loan agent they’re working with is competent, knowledgeable, responsive, and local.
Some people might think that the best lender is the one who offers the lowest rate but there might be additional costs to get that low rate. You should treat it like you're looking for a financial advisor to handle hundreds of thousands of dollars of your money. I feel like great lenders can give you their thoughts and analysis of the current lending AND financial markets. Both are so woven together that it’s critical to have a loan agent that understands both markets and can advise you on the impact of global macroeconomic factors.
Feel free to get in touch with any questions, and to discuss what’s possible for you in the San Francisco real estate market. It all starts with a conversation.
