Blog.LiveAnnapolis.com

When an agent advises a client to use one of a certain set of lenders, the client would be advised to use one of that certain set of lenders. Why? Because experience has shown the agent that those lenders are worthwhile to work with. It is legally not possible for there to be a financial relationship between the lender and the agent. If you report that there is such an illegal relationship, the agent and the lender can both face criminal charges.

So why would an agent recommend certain lenders—because the agent is looking out for the best interests of the client.

There are of course predatory lenders to avoid, (even in Annapolis) but just as important, there are incompetent mortgage brokers out there. And I would never recommend using one of the on-line lenders, or non-local lenders. Why? Because accountability and experience. On-line lenders make there money from the massive number of loans that they attempt to handle. If something goes wrong, and it does more often than is comfortable, does the unnamed customer service agent at the other end of that impressive website have any accountability to you the buyer or seller? NO.
What kind of experience does the on-line lender or non-local lender have with the ins-and-outs of local laws and customary ways of doing things? Almost certainly—none.

So you get the worst of all possible worlds, someone who may or may not know anything about Maryland state law, local customary usage and who has no accountability. Does that make a recipe for something you want to get involved with? On the most expensive and important financial decisions in your life?

Of course, you may say and accurately, but I have local lenders here who are accountable and reasonably knowledgeable—and you would be right. It is just that the risks are greater when you can’t walk into the office the day before closing, when you can’t shake their hands, look into their eyes and say good job, I’ll recommend to my neighbors that they use you.

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