Local! Local! Local!
Mortgage companies offer home mortgage refinancing and new mortgage loans. Negotiating a mortgage loan application with an out-of-town company, be it over-the-phone or internet, may pose difficulties and delays which you, the customer, may not have anticipated. Unforeseen pitfalls will not only delay the loan process and the construction, but you may find yourself back to square one months after initiating the loan application. All of our customers who applied for mortgage loans with companies out of town, found themselves in this dilemma. Contact a local mortgage loan company before going elsewhere.
Common problems afflicting customers who applied for a mortgage loan over the internet or over the telephone with an out of town mortgage company are virtually predictable.
The majority of the contact with the mortgage company is via emails and faxes. A recurring problem is that the requested documents sent are “lost”. You discover that the person you initially contacted at the mortgage company, handed over the application documents to someone else. This new agent will request the same documents anew, only to request them multiple times, because they “never received the documents” and/or additional documents are required to complete the application. This agent then submits the package to a loan processor, and again, it’s back to square one—documents are lost. Our office ends up re-sending documents multiple times.
To complicate matters, after the home is built, the mortgage company hires appraisers unfamiliar with the geographic area where your home was built. A secondary appraisal is in order since the mortgage company cannot complete the loan application process to forward to the Title Company for closing—all the while the Lender is charging the Customer interest on the interim loan. Additionally, the Mortgage Company may place the burden on the customer to obtain real estate comps—the responsibility of the mortgage company!
Closings are bumped to many months after completion of the house because the mortgage company failed to request the required documents at the start of the loan application. (One of our customers is still waiting to close, which won’t occur until AFTER January 2017, seven months after the home was completed, because the mortgage company did not know that the customer needed to have at least two years of employment history.) Meanwhile, the home builder is unable to collect the final draw on the completed home due to the delays caused by?….the mortgage company! Hope that the general contractor you hired to build your home has indeed paid his/her subcontractors and suppliers–otherwise prepare for the barrage of mechanic’s liens! And by the way, do not move into your new home prior to the Title Company closing. You will open up a Pandora’s box, since this constitutes buying a “used home”—a whole other ball of wax.
Customers feel like “a number”–their closing and moving into their new home is not priority. This builder has yet to see a closing realized from a customer who dealt with an out of town mortgage loan company. One customer, frustrated with the mortgage company losing documents and having to make several trips to our office to submit “additional” documentation, made the wise decision to negotiate with a local mortgage company instead. She is excited that the mortgage loan process is advancing.
In light of these recent experiences, this home builder advises that you walk in to a local mortgage company and speak face-to-face with a representative who is knowledgeable of all aspects and types of available mortgage loans. Ask your home builder to recommend a reputable company who knows the builder, the appraiser, the attorney, the banker–a team who will work hand-in-hand with you to expedite your loan, the construction of your home, the final closing, and the much anticipated moving into your new home.
New York City?! Get a ROPE!