Relocation Pros: Are your transferees getting the best experience?
Employee relocation financing should be easy, stress-free, and financially prudent. The financing should involve a great customer experience and value throughout the process, whether the employee has home purchase or lump sum benefits. For this reason, preferred lenders are chosen carefully.
However, relocating employees with a lump sum benefit often choose a non-preferred mortgage lender and struggle to maximize cost savings and service.
Our team talks with thousands of relocating employees each year. We know when employees compare mortgage offerings between a preferred mortgage lender and non-preferred mortgage lender, they quickly identify large differences in total costs and service levels. This may be confusing and frustrating for employees.
Second Opinions on Loan Estimates
We are a resource to all our partners and are routinely asked by relocation counselors and employees to review Loan Estimates (LEs) from non-preferred mortgage lenders. They question the number or sum of the fees being charged. What we find is that the employee will be paying fees that would have been reduced or eliminated by a preferred mortgage lender. The out-of-network provider might charge multiple fees that a preferred mortgage lender would not. For employees with no home purchase benefit or lump sum, a preferred mortgage lender can minimize out-of-pocket expenses for your relocating employee.
In one instance, we reviewed an LE for a relocation consultant whose transferee was closing shortly and using an out of network lender. Our loan officer identified charges that as a preferred lender Premia Relocation Mortgage would not charge. They included:
• Application fee - $85
• Origination fee - $1200
• Underwriting fee - $450
That adds up to $1,735 in extra fees that the employee was going to be charged. In the end, this transferee was able to switch to Premia Relocation Mortgage, save money and meet their closing date. However, in this competitive market, changing lenders midstream might not be ideal. Making employees aware of preferred lenders that have been well selected is critical in today’s market.
Each year Bankrate.com publishes the average fees charged by mortgage providers. In 2019, the average national mortgage lender fee for home financing was $2,540*. At Premia Relocation Mortgage, we saved our borrowers on average $1,865 in lender fees.
Educating Employees about Going Out of Network
Bottom line, a preferred mortgage lender can provide a lower interest rate, reduced fees and more importantly - relocation expertise. When an employee looks elsewhere, they may regret it. Even if an employer is not offering home purchase benefits, being a relocating employee means something at Premia Relocation Mortgage. Our business model is built to successfully serve this niche market with:
• Competitive rates
• Discounted fees that have been negotiated with the employer
• No application fee, origination fee, commitment fee or underwriting fee.
• A processing and underwriting team understanding the nuances of relocating and necessary higher service level.
Relocation teams work with various departments including accounting, finance and supply chain management to create value around the relocation program. You have done your due diligence with high quality offerings, a wealth of resources and best-in-class service providers. Let us prove you right. At Premia Relocation Mortgage, we are committed to earning the business through exceptional service and cost savings for all employees.
*Bankrate.com’s 2019 average national mortgage lender fee for home financing was $2,540. Premia Relocation Mortgage charges $675 in lender fees. The difference between the national average and Premia Relocation Mortgage is $1865.
- By Mark Britt, VP of Business Development,
Jul 09, 2021