Where should I get a loan?

I am getting a lot of loan questions lately, so I thought I'd spend a few minutes on the frequently asked questions around mortgages and mortgage professionals.

1. Does it matter who I work with as long as I get the best rate?
Yes. I want you to get the best possible rate too, but more than that I want you to be able to close on your house. If you can't close because your mortgage guy dropped the ball, it doesn't matter how good of a rate he quoted you. If you can find someone who offers a guarantee about your closing date and good faith estimate, that's a good sign that they won't drop the ball.

2. I like my bank/credit union, can't I just use them?
You certainly can. Include them in the short list of people you call to compare rates. In my experience, banks and credit unions are your best choice for short term loans for cars, home improvement projects, etc. Mortgage bankers do better with the long-term loans.

3. I don't want to compare rates, just tell me who to use.
I like Fairfield Mortgage, and James Williamson and Robbie Crozier in particular. They have a $1000 guarantee about closing costs and closing dates. They are always up to speed on the market, what new loans programs are out there, and what the current rates are. They always take time to answer my questions. Plus, I have a good relationship with them, so if we hit a snag with your closing I know how to get in touch with them quickly and easily.

4. I got qualified online. Can we go look at houses now?
No. This answer has three parts.
A. Unless this online service checked your credit, and considered loan programs specific to your situation and location, you are going to need to talk to a lender. You're so close! Just take 10 minutes and call a lender, then give them my phone number and have them call me. It's that easy!
B. Why are we such sticklers for this? As a Realtor, I have made a commitment to be fair and honest. If there isn't a real chance that you can buy a particular house, I can't show it to you. Think about it from the seller's perspective... you get a call from an agent, saying that she wants to show your house on Saturday morning at 10 am. So you spend Friday night getting it clean, you make arrangements for the neighbor to walk the dog, and you take your kids to McDonald's for breakfast so that the house will be empty. Then when your Realtor calls the other agent to ask how the buyers liked the house, the other agent says, "Well they can't actually afford to buy it, but they wanted to look around a little." As the seller, how would you feel about making all of that effort, with no chance of it selling you home? I have an obligation to the home-owner to make sure that you can buy her house, before I take you into it.
C. You are going to have to submit either a proof of funds exhibit or a pre-qualification letter with an offer, so you might as well go ahead and talk to someone now. If you submit an offer with an on-line qualification, they will laugh at you, and me. And I don't like to be laughed at.

If you have a mortgage question I didn't answer, send it my way. If I can't answer it, I'll ask James and Robbie.