Ridgefield buyer ditches online mortgage lender for local banker

Mortgage banker: Dave Stambone Home value: $ 750,000 Property type: Single-family purchase in Ridgefield

Loan amount: $ 601,000

Loan terms: Conventional, 30-year fixed, 4.125 percent, no points

Backstory: A couple was interested in purchasing an antique home and relocating to Fairfield County from New York City. They had been visiting potential properties regularly each weekend, until they found the perfect fit in Ridgefield.

The couple applied online and received a pre- approval letter instantly from an internet lender, who assured them they were well qualified. Their real estate agent suggested they speak with someone local and recommend they have a conversation with Stambone. Initially, they declined.

The couple narrowed their search down to two homes and made the decision to place an offer on their favorite. However, their internet pre- approval letter was short of the asking price.

Frustrated, they were unable to contact the online lender to determine if they qualified and to obtain a properly revised letter.

Concerned about losing the home to a competing buyer, they decided to give Stambone a call. After a 10-minute conversation, Stambone was able to pre- approve them for the asking price and issued an updated, revised letter directly to the agent who then submitted their offer.

Impressed with Stambone and his team, the buyers decided to pursue financing through his bank. Twenty-four hours later, they obtained a loan commitment, which guaranteed a 21-day closing. This provided confidence to the seller who agreed to their offer.

Although the buyers were excited about closing on their new home, they worried about the property appraising since it was an antique.

Large national and online lenders will typically access an appraiser through an Appraisal Management Company (AMC). The AMC acts as a third party in sub-contracting work out to appraisers at bid.

The issue in using lenders that utilize an AMC is the uncertainty of how familiar the appraiser may be with an area and the overall quality of their work. If the appraisal does not meet or exceed the contract price, the buyer may have to come up with the difference, which could be a deal breaker.

Stambone explained his bank offers a private appraisal panel that is operated by a Director of Valuations at his company (There is no third party AMC). The director is responsible for vetting appraisers to ensure total quality and how privy they may be to their respective areas covered.

This service adds major value to the loan process to ensure an uninfluenced, but accurate evaluation of what a home may be worth.

Finally, the home was appraised and they closed without a hitch.