Most Important Mortgage Factor

 The Most Important Part of the Mortgage Process

By: Ted Lyons

There can be no denying that the mortgage process has become significantly more complicated in the last several years.   The real estate/mortgage bubbles and subsequent collapses made clear that there the envelope had been pushed too far when it came to mortgage products that were available.  The industry joke in mid-2000s was "You only need a Social Security Number and a pulse to get a mortgage - and there's even some flexibility when it comes to the pulse."  As the ruins of the bubble era mortgage marketplace were surveyed a flurry of government regulations ensued.  All well-meaning, some flawed in their execution, but each of them needing to be taken into account as we walk through the actual work of obtaining a mortgage.

As a result of all of these changes and the alphabet soup of regulatory agencies and regulations that resulted (CFBP, MDIA, HVCC, QM, etc) the most important part of the process has become not who can make the most outlandish rate pitch - but rather which originator and which company can guide you through the experience intact.  The sad truth of the matter is that for all of the regulatory changes there still isn't much to stop a large boiler room of a large mortgage bank or lender from promising one rate, and then at the end of the process delivering another.  Their advertisements are littered with enough fine print to choke a horse and the process can be so overwhelming that at the end of it, one doesn't even necessarily remember what was promised at the beginning of it.  This doesn't mean that an individual shouldn't examine the market and make sure that the interest rate, terms, and costs of a given originator and company aren't in line with that market.  But many of the most severe self-inflicted wounds while getting a mortgage can be from chasing that Holy Grail of a one-eighth lower interest rate or going with a company that says they will give you $50.00 off your costs because you have an account with them.

The demands can be tough in the mortgage world these days.  My customers often times vocalize that the process has become mind numbingly intrusive - and I can't argue with them there.  So my job is to be their Sherpa, guiding them through unavoidable challenges at all times. I am also their Gladiator, fighting for them so that they can buy or refinance their home when the going gets tough.  That's why the most important part of the mortgage process today is having a champion originator who works for an organization that can be trusted.  If you've had a great experience with an originator in the past - stick with them.  Seek out the advice of colleagues, friends, and family who have had GOOD mortgage experiences.  Finally, look your originator in the eye and determine for yourself if they look like they have the intelligence and the guts to help you get your mortgage - even if the process turns out to be challenging.  Because it's possible that it will.