It doesn't take long to find and read through multiple heart-breaking and unsettling stories here on ActiveRain regarding the handling of lending transactions, loan modifications, foreclosures, short-sales, credit repair, mortgage applications, and more. It's a sad fact, but true.
It also doesn't take long to find and read comments left by agents and brokers on AR expressing their loyalty and thanks for the relationships and trust they have forged with their favorite preferred lenders ... proving the extreme importance of those relationships.
I focus this article on the buyers, newer agents, sellers, attorneys, etc. that have not yet found and established that type 
of relationship. I strongly urge those in this position to take the time to do this. Then, if at all possible within the framework of upcoming transactions ... get actively involved in the choice of lender utilized within those transactions.
A decision made regarding a lender may not only effect whether the transaction is successful for the clients on both sides of the sale, but for all the professionals involved too. For agents/brokers, future or upcoming sales/transactions involving a repeat buyer/client could also be effected, as well. A bad or poor decision regarding lenders can come back to haunt many people ...
Just ask many of those folks in foreclosures, modifications, short-sales today. Do they have regrets about their initial lender decision made at purchase?
At the risk of sounding like a broken record ... I repeat ... get involved in the choice of lenders when possible. Do not be afraid to offer your opinions and choices and offer multiple experienced and trusted names to your buyer/client. You are their trusted source of information and guidance. I understand you cannot directly insist, but a smart, strong agent or other real estate professional can definitely provide subtle direction. (The same can be said (and expected) in return from lenders regarding agent/broker referrals, when possible.)
I hear so many times when agents are speaking of new client/buyers ... "they are already pre-qualified". When asked by whom ... an answer cannot be provided. Who are these mysterious pre-qualifying sources?? Now is the time to take the reins!
Never has there been a time when the choice of lenders has been more important ... not only to the client/buyer ... but to the professionals involved within the deal. Taking a hands-off or cavalier attitude towards this important decision is n
ot prudent or wise.
I try to stress when speaking to clients, that yes ... interest rates are extremely important. Of that, there is no doubt. But, a lender that offers you a cheap rate, no points, and etc., AND DOES NOT POSSESS THE EXPERTISE AND ABILITY TO DELIVER YOUR TRANSACTION TO THE CLOSING TABLE AS PROMISED ... IS OF ABSOLUTELY NO VALUE TO YOU AND CAN COST YOU TIME, INTEREST RATE, MONEY, AND POSSIBLY THE PROPERTY YOU ARE HOPING TO PURCHASE.
Perhaps one of the biggest clues to trouble on the horizon ...is a client/buyer that cannot find or communicate with a lender quickly and easily. It's a big problem for the client and everyone else involved in the deal.
Especially right now when interest rates are volatile and seemingly on the rise ... time can truly be money!
Experience, expertise, knowledge, background, support, rapport with underwriters, REPUTATION ... all should enter into a buyer's decision when it comes to choice of mortgage lender. The same can be said for those professionals looking to forge a referral relationship. In the long run, working with a lender that embodies all these talents and abilities will save a deal from faltering and everyone from aggrevation throughout the processing of the loan. Money savings will be realized ... not only now, but in the future
.
A good lender serves as their client's ally and advocate from first communication, through processing and closing, and into the future. A good lender will continue to monitor lending and financial scenarios to their client's advantage and benefit way beyond the initial closing table. Client and lender become a team. Without a doubt, the choice of a lender is a decision that should not be made lightly, in haste, without referral, or without real thorough and thoughtful consideration.
For those agents that have established and built good referral relationships with reliable experienced lenders ... you do your clients a great service. You safeguard your client's financial futures and homes as best as can possibly be expected in these challenging times.
For those agents and real estate professionals that still need to discover and establish a relationship ... now is the time to take those important steps. Build a strong referral team. It's never been more important!
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Skype! 630-219-1316
Gene, the part about mortgage rates caught my eye because it is not about getting the best mortgage rate quote. It is about getting the best mortgage lender! And THAT is how to avoid financial heartache. :) Kate
Kate: Don't you and I know it!!! Exactly the message I was trying to convey ...
Gene
Lender's are such an important part of the process of buying a home. I am amazed when my buyers stay loyal to a lender that is really not doing a good job for them.
Gene - AMEN! BRAVO! You're singing to the choir, my friend. I couldn't agree more that buyers need to work with someone who not only knows what they're doing but someone who they can trust to do what's best for them.
In response to Terri's comment though, I am amazed at Realtors who try and get their buyers to use their own preferred lender when the buyer is loyal to someone else who was referred to them that they like and trust and who is doing a great job for them.
Most of my clients come to me through a referral they got from someone they know who told them about me and how knowlegeable and experienced I am and what a great job I did for them.
I spend a great deal of time preparing my clients for the loan process, educating them and pre-approving them and then some Realtor who doesn't know me and has never worked with me goes and tells my client that their preferred lender is better and that they (the buyer) would be better off with their preferred lender. TOTALLY PISSES ME OFF!
Anyway, sorry for the long comment, but that comment just kind of struck a chord with me.
On another note, the greatest compliments I get from my clients is when their Realtors do try and get them to use their (the Realtors) preferred lender and my clients will tell their Realtors "no thx, I like Donne and she's doing a great job".
I also love it when LA tell my clients or their Realtors that they can't buy a particular property unless they use the LA's preferred lender and my clients will tell their Realtors that they're going to pass on the property. Its to the point that many of my clients will even tell their Realtors, "I'm not interested in seeing any properties where I have to pre-approve with some other lender".