Top Issues with Internet Lenders

Are there any differences between lenders? Are there any risks? Anything to be wary of?

Securing the right loan at the best rate is a consultative service where a knowledgeable, experienced professional can make a significant difference. Unlike an interchangeable part you can pick out of a catalog and can return if you don’t like it, a loan involves a large amount of your money, has long-term consequences and costs, and involves contractual deadlines if purchasing property.

When you work with us, we are here to meet with you in person, we attend the signing and verify that the loan papers are exactly correct, and we respond to any last-minute issues. If you are making a purchase offer, the seller and their agent are often much more comfortable working with a local professional who is accountable and compensated for getting the transaction closed just like they are, versus an hourly employee in a call center who has no incentive to close your loan on time (we know this because we ourselves are real estate brokers).

When buying commodity items, go ahead and browse online. When hiring professional services, use someone whom you can look in the eyes.

How Online Lenders Operate:		How Steve Rumberg Operates:
Online lenders usually have a call center which routes your call to whomever is next in line to take the call. You have no idea if the person is qualified or just a trainee reading off the screen.	vs.	We don’t have a call center. When you have questions, you are speaking directly with the person handling your specific loan. We are experts — no trainees here!
Have questions? Your call is randomly assigned to the next available rep who will not be familiar with your your financing goals or even your financial profile. Or, you might just get the voice response system and not be able to talk to anyone at all.	vs.	You deal with a specific person who knows your situation and will tailor the financing to help you accomplish your goals.
Internet lenders advertise the "cream of the crop" rates for highly specific loans that very few borrowers actually use. So, if your credit score isn’t 800, with 30% down and 12 month’s of reserve mortgage payments, tough luck.	vs.	We don’t suggest any rate at all until we know your financial profile and your goals. We develop a financing strategy tailored to you, explain it, discuss your rate options, and answer any questions you have.
They offer a tantalizing teaser rate to get your phone call or email, but you can’t get any details until you provide your private information such as social security number, birth date, and name. Once they have your info and have run another credit report on you, the rate is "no longer available" or "not for your credit profile" and your private info is then sold as a "hot lead" to other lenders.	vs.	We don’t offer what we don’t have, so no teaser rates. We don’t take any private information until you offer it. We have never sold a "lead" to another lender. We do have introductory rates which feature a low initial rate, but we let you know that your final rate will be higher in exchange for the initial intro rate.
When online lenders have trouble getting the loan docs to the title company, your closing can be delayed. If you are in contract to purchase a property, gambling on whether your loan will close on time can be costly.	vs.	We monitor the processing of your loan step-by-step and make sure that everyone is working together in unison. We stay on top on your loan and all the other people involved to make sure that your loan closes as scheduled.
The online representative probably won’t review the closing papers, however, often there are oversights on the closing statement. Since they have no stake in that — why would they care if you overpay? And they certainly won’t be flying out here to attend the document signing meeting with you!	vs.	We provide you with a detailed settlement statement before the sign off appointment and we review for accuracy. And, we will be at the sign off meeting with you to verify that the loan documents are exactly correct.
Online lenders typically pay their call center reps a salary and your loan is just another file number on a computer screen, so whether or not your loan closes on time has no effect on their life.	vs.	As a mortgage broker, we get paid only after your loan has closed successfully. Our results depend on getting YOU results. You are very important to us.
Internet lenders close only 10% of the loan applications they take.	vs.	We don’t even take a loan application until you are sure of how you would like to proceed. We close our loans or we don’t get future referrals from satisfied customers. We don’t like doing business with firms that have a 90% failure rate.