Should I Accept Lenders Recommended by Realtors
Real estate agent often makes a suggestion for a lender. You may think that they are suggesting accepting the offer of one of their friends or family members. But this is only true in very rare situations. Be sure to talk to that lender because most realtors make recommendations for very good reasons.
First they will recommend someone reliable. Reliability is important to any hone buyer. But Reliability is also important to the seller, the agents, and everyone involved in your transaction because is the deal does not close, everyone walks away with nothing. Second with recommended lenders by agents, you will be able to cut through red tape and get something done quickly, especially if you need to close the deal quickly.
If you are buying a brand new home, dealing with a recommended lender is even more important. The main reason is that there are a lot of intricacies involved in new homes that do not exist when buying resale. If you "shop" around to find your own lender, you may end up with someone who quotes a great rate and is great with refinances or resold houses. Perhaps he has no experience with new homes. This can lead to problems or delays.
For one decade, real estate companies have built up their own mortgage brokerages n order to remedy to these situations. Package services like this make sense because it adds another profit center to the company. This is useful because it helps real estate companies to offset higher commission splits with their agents. However, because this is captured business, sometimes these lenders do not have as much incentive to offer you great deals or lower rates. All you have to do is let them know you are also shopping rates and they will probably work toward accommodating you as much as possible. If you shop around, you will also know the interest rates of the market, and you not accept higher interest rates.
As a conclusion, you should not automatically disqualify a recommended lender. But be sure to ask questions about any relationships between the lending company and your builder or real estate agent's company. Besides shop rate by yourself and be vigilant not to accept any rates.
|
