Most people looking for a home loan look first at the interest rate when looking for a lender. While it is normal to want the best deal on any transaction, the lowest rate options may not be the best value or even the cheapest when it comes to who you choose for your mortgage. Many borrowers, especially first time home buyers, have never had the pleasure of experiencing the stress and anguish of a loan process gone bad. Because of this, most people only know to compare mortgage options by the rate. While you will likely live with the loan rate you get for a significant amount of time, the actual difference in payment may not be significant with small changes in interest rate. The companies with the lowest rates usually have inferior processing and slower closing times. This can create significant issues for the home buyer, the seller and real estate agents. These companies often have big names and high visibility in the market.

The actual costs for a loan that goes late can be significant as well. Aside from the emotional misery that a buyer experiences when a loan does not close on the promised date, they are also exposed to financial implications. Here is a list of a few potential issues:

1. Violating lease agreements if the property is not vacated on time. Some properties will charge the out going tenant if the incoming tenant cannot move in on time. If a loan closes even a few days late a renter may have to pay another full month of rent on their current residence.
2. For buyers who are selling a home at the same time you can add the additional stress of a buyer needing to move in to your home. All of that buyer's issues regarding their living situation come crashing down on the seller and the agents if they cannot move out on time. Threats of law suits and breach of contract are not uncommon.
3. Moving twice is a common problem for those whose loans do not close on time. This adds additional costs and extremely inconvenient life disruptions. If a home buyer has to be out of their residence on a certain date for any reason, they can be faced with moving their possessions twice. They may have to move their belongings in to storage and then in to the home when the loan closes late. This adds costs for movers, the storage unit or at least rescheduling friends to help with the move.
4. Violating a purchase agreement can expose a home buyer to expenses. Not meeting a closing time can jeopardize Earnest Money deposits if he seller chooses to be uncooperative with an extension. This can happen especially if a seller has a back up offer that is higher than what you have agreed upon. If you are buying from a bank or savvy sellers you could have a per diem penalty of $100.00/day for every day late you close on the purchase.
5. On top of hard financial costs, the emotional costs of closing late are usually very high for most buyers. This can be for a variety of reasons depending on the buyer's circumstances. The simple possibility of losing a home that they have searched hard to find is probably the most common.

Lenders do not usually refund or compensate borrowers for problems that they cause. As with any transaction there can be high value proposition for a small increase in costs.

As a mortgage origination team, Eastside Mortgage Professionals has the option to go to almost any mortgage company to serve their clients. In choosing a Seattle Home Mortgage company we placed the highest value on the experience the borrower will live through in closing their loan. Loan pricing was the next parameter. Bellevue mortgage rates and Seattle mortgage rates are very close between most lenders. In choosing Guild Mortgage, we went with a team with the most experienced processors, underwriters and office managers. We also chose a company that is specifically structured to close loans quickly with great service. With the option to choose from among many different lenders and our own in house loans, we have very competitive options regarding rate and fees.

We are confident that we will give you the best combination of good rate and the best loan closing experience in the industry. Give us an opportunity to help you close your next loan.