Jamie Dimon, CEO of JP Morgan, once wrote in a memo to shareholders that: “…mortgages are offered as a benefit to customers, not because it's a sound investment for the bank." In a recent article by CNBC, one-third of consumers surveyed complained about how their mortgage was handled by banks – and two-thirds of the complaints related to how banks handled all loans in general.
The excitement you experience during your first real estate purchase quickly dwindles when your bank demonstrates their apathy.
There are so many ways for banks to make the mortgage experience much less frustrating, yet “quality service” and “follow-up” tend to be forgotten. For example:
- You were told that your loan application would be reviewed before the end of the week [But then you call your bank for an update and find out the underwriter in charge of approving your loan is out of the office]
- You compile all back-up support to evidence your income and property insurance [But then you call your bank for an update and find out three of these items have been misplaced, and were never seen by the underwriter]
- You go to the closing to sign documents and get the keys to your new property [But then you call your bank for an update and find out you need to wait three hours before they approve the documentation and authorize the loan disbursement]
The way some bankers handle mortgages for consumers is certainly not the way they would handle their own mortgage!
Here’s the Point: There are plenty of mortgage lenders who understand the importance of service – just make sure to pick the right one.