Should You Use an Online Lender?
I’m Sean Reynolds, the owner of Summit Properties NW
and Reynolds & Kline Appraisal. And today with me is Mr Dan Chapman
of Fairway Independent Mortgage. And we are talking about when is it a
good time to use an online lender and when do you recommend people use a lender
that’s got a physical location like yourself? Well, I would never recommend an online lender
and there’s a few reasons for that. Number one, they often will advertise really low
rates to get your foot in the door. And then a lot of times if
it’s too good to be true, it’s too good to be true, right?
That age old saying, yeah, that, that age old saying. And many times I’ve had clients where
they’ve gotten a down the road with an online lender and they get their estimate
and it’s got a bunch of closing costs they weren’t planning on right. Uh, with, with a little bit got brought in with a
teaser rate and then they actually get to closing and they’re like, oh my
gosh, this isn’t what I signed up for. It helped me, Dan. So, um, right.
That happens all the time. Um, number two reason is if you’ve
got a complicated situation, um, maybe you’re self employed, maybe
you have multiple tax returns, maybe you have maybe file k ones, things
like that. Um, we can look at that, me and my team and, and know pretty quickly if this
loan is going to be approved or not. And online vendors, a lot of times they’ll just throw out a
preapproval letter and you get down the road and you’re not going to close.
So if you’ve got a unique situation, if you’ve got something slightly
outside of the bar outside of the box, I wouldn’t recommend an online
lender. Yeah. That would, that could be dangerous. Um, you get
down to closing and it may not close. Right. And that happens a lot. And I get a lot of clients that come to
me that way. Help rescue me. Right. Um, and the third reason I
would say is, you know, I’ve been doing this for
going on 19 years. Um, experienced loan officers don’t
go to work for online lenders. Um, we have brick and mortar
facility, online lender. You may be across the
nation somewhere. Uh, we will advise our clients as
a mortgage professionals and, and give them the advice that, uh, that
you’re not gonna get the full advice, that full spectrum kind of like a
financial planner that you guys have a physical office to. Clients
can walk into, bars, can walk into see you face to face.
Make that connection. Exactly. Whereas an online lender just doesn’t
have, yeah, there could be in Florida, in New York. How does your pricing compare to an
online lender when it comes down to it? When you compare it at the actual
truth of what you’re getting? It’s very competitive. Um, you know, especially on the mortgage guys
are kind of within the same, they’re usually within an eighth and rate. You’re usually going to be
within an eighth in rate. You shop rates with a
bunch of different lenders. Nine Times out of 10 it’s within an
eighth in. Right. Okay. Okay. Excellent. Yeah. Well Dan, thanks so much for sharing
that information and if you
are a borrower out there, I would highly recommend Dan Chapman,
fairway independent mortgage. Dan, thanks Sean Appreciate so much. Again, I’m Sean Reynolds from Summit Properties
NW and Reynolds & Kline Appraisal. We’ll catch you in the next one.
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