When it comes to mortgage rates, there’s a perception that borrowers can shop for the best rates. The truth is there is little difference from one lender to another. And since closing costs in New York are highly regulated, it’s virtually impossible for a lender to save you anything significant on your costs! Yet some borrowers can’t help but be drawn in by the hollow promise and false allure that their credit union will somehow save them money.
“Willie” was referred to us by his Realtor. We welcomed him to our office, answered all his questions, guided him through our intake process, and pre-approved him. We helped him obtain a winning bid on his new home, he went to contract, we communicated regularly with his team, and within 30 days, we were ready to close.
However, Willie was a member of his credit union. And their Siren Song of saving money kept calling to him. Week after week he kept comparing our disclosed costs to theirs. And week after week I would explain – even show him – how the costs at his credit union were within about $200.00 of our costs. “When you’re buying a home and paying over $20K in closing costs, are you really going to make one of the biggest decisions of your life over a 1% difference in fees??”
Nevertheless, Willie pulled his application and applied with his credit union.
Three months later, I found out Willie had not yet closed on his home purchase! The process of getting his mortgage at the credit union had taken a lot longer. And in the 11th hour, the credit union demanded a truly inconsequential title issue be rectified before they would allow the closing to take place. The seller’s attorney was pissed. Even the buyer’s own attorney admitted it was trivial and the credit union was nitpicking.
SIDEBAR: My office reviews every title report as soon as it is received. Issues that are important to our clients, we point out for their attorneys to resolve. But most are not issues our lenders require to be addressed.
After the fourth month, the seller had resolved the title issue. However, Willie’s lock had expired and rates had risen. He was now subject to a higher rate, higher fees, and he’d used up all the goodwill his seller was willing to give. To add insult to his injury, at the closing, he realized the closing costs he and I had discussed were exactly as I had explained. His perceived savings was a charade.
In this crazy lending environment, it’s critical you work with the right people who know what they’re doing and can get the job done. Don’t fall for those ‘Big Bank’ shenanigans. At Mortgage Wealth Advisors, you’ll receive accurate information, valuable advice, and a concierge experience. Working together, we can ensure your transaction goes smoothly and stress-free.
And guess what?
The mortgage rates and fees you’ll receive
are probably the same as “the deal” you think you’re getting at your credit union.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.