First time real estate purchasers will typically ask for a mortgage person recommendation, which I suggest they speak with three individuals. I also emphasize the need for the mortgage person to be at the closing. In the current mortgage/banking environment I also believe it is critical…and in the purchaser’s interest, to work with a bank or mortgage person who has offices in Illinois or Chicago.
I am finding that younger clients usually go to the internet to check mortgage rates, and in many instances will decide to use an internet based company that may be located out of the West Coast with no offices in Chicago. The results at the closing can be troublesome at times.
Here are the issues you may run into: The contact at the mortgage company may not be aware of the Chicago/Cook County Stamp Tax. The mortgage lender may ask the realtor to obtain an appraiser, or suggest one, which is a conflict of interest in my opinion due to the current mortgage crisis. The interest rate you thought you were getting is different from the one listed in the closing documents. The money wire transfer may not have arrived due to the time zone difference between the West Coast and Chicago. A company voice mail menu or voice mail is the primary way of getting in touch with a mortgage processor during closing.
And finally, who is at the closing table to help with any of the issues? You need a mortgage person physically at the table to facilitate the process should any issues come up during the closing.