Stovall Realtors

We depend on road signs to tell us where to go, but sometimes they don’t point us in the right direction. There’s one intersection near where I used to live that became my pet peeve. It’s the intersection of Robertson and Buffalo Gap Road. The problem is that Robertson does not line up exactly with the road that goes into the Mall. In order to go straight into the Mall you have to be in the left lane on Robertson directly facing oncoming traffic. Since most people have an aversion to head on collisions, they stay in the left lane and try to go straight. There is a small sign by the signal light but it is not very obvious. The problem is that the right lane is for right turns only, and the green light to go straight doesn’t come on unless you are in the left lane. Sometimes people sit through 2 or 3 green arrows waiting for a green light to go straight. This causes much distress to those of us parked behind the poor unfortunate souls who don’t realize that they are in a turning lane. I think there should be a big sign that says "Right Turn Only, Stupid!" But they didn’t ask me.

A mortgage lender can be much like a street sign. A good local lender can save you from embarrassing delays and roadblocks, while out-of-town lenders, such as those you may find on the internet or television, can take you down a painful road of detours.

One problem with using an out-of-town lender is they don’t know the market. Even though you may be getting a standardized government loan, local markets vary widely. The choice of an appraiser is another item to consider. Local lenders know which appraisers to call for various types of loans and are familiar with comparable sales. An out-of-town lender may not even have a local appraiser on their "approved list."

Another problem with out-of-town lenders is that you never know what you are getting. Promises of cheap rates may be offset by fees that are higher than are customary in our market. Be sure to get all of the facts in writing on a standardized "HUD-1" which is a federally required Good Faith Estimate form. Usually our local lenders can meet or beat any "deal" you can find elsewhere when you compare apples to apples.

One other problem with the out-of-town lender is that you may never be able to speak to the same person. Often you are just a number while your loan gets passed from clerk to clerk. Many times important terms of your contract, such as the projected closing date, may be ignored, causing delays and friction between you and the seller of the property. Sometimes lenders can actually cause buyers to be in default and risk their earnest money. With a local lender you can discuss your loan with an actual person that, if necessary, you can reach across the desk and strangle if there is a problem. Usually problems can be worked out in time for closing or at least in time to get the closing date extended.

Lastly, our local lenders support our community. I believe that whenever possible we should "Buy Big Country." Not all out-of-town lenders are bad and not all local lenders are good. It’s a good idea to listen to your Stovall Realtors team member and choose a lender who is an affiliate member of the Abilene Board of Realtors. Seek the advice of your agent. We does this every day. Like a good road sign, a good lender will take you where you want to go.

 Steve Stovall