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Where to find a mortgage loan
Local banks, credit unions, and private
financing companies offer mortgage loans.
However, the majority of homebuyers choose to
use the services of a mortgage broker.
Mortgage Brokers do not fund your
loan, but work on behalf of the lenders. The
broker checks your credit and work record,
arranges for title search and hires the property
appraiser. When all the research and paperwork
is completed, they pass it along to the lender
for final approval.
A mortgage broker
does not represent a specific bank or lending
institution and has the flexibility to access
available programs from hundreds of lenders.
They will identify what lender can best fit your
special needs and work like a matchmaker between
you and the lenders.
When Your Realtor Recommends a Lender
If your Realtor makes a suggestion for a lender,
be sure to talk to that lender. There are
several reasons for making the recommendation.
Realtors make suggestions because they want to
recommend someone reliable. Reliability is
important to you, so that you won't end up with
a horror story to tell. Reliability is also
important to the seller, the Realtors, and
everyone involved in your transaction...if the
deal doesn't close, everyone walks away with
nothing.
Over time your Realtor has developed a rapport
with lenders who have done good work. By sending
a serious amount of business to them, the
Realtor has developed a certain amount of
"clout" in dealing with those lenders. This can
help in a situation where you need to cut
through "red tape" and get something done
quickly.
When buying a newly-built home, dealing with a
recommended lender is often very important. This
is because there are a lot of intricacies
involved in new homes that do not exist when
buying previously owned home. If you "shop"
around to find your own lender, you may end up
with someone who quotes a great rate, but has no
experience with new homes. This can lead to
serious problems or delays.
Realtors receive no money or gifts for
recommending specific lenders. What they receive
is assurance that the offer they are presenting
to the seller includes sound financial backing.
 Beware of the Predatory Lender
Most
mortgage lenders and brokers have their
customers' best interests in mind but there are
some who may try to take advantage of consumers
by using "abusive" or "predatory" lending
practices.
Shop around and
compare different lenders' loan products. Ask
for written Good-Faith Estimates that include
all points, fees and closing costs. Avoid loans
that sound too good to be true. If it seems too
good to be true, it probably is. If the loan
being offered is really interesting...get it in
writing!
You may have
doubts or questions about your mortgage loan or
the lender's practices. If so speak with your
Buyer Agent. Realtors who have been in the
business for a few years have had the
opportunity to sort the "predators" from the
"good lenders".
Realtors are only paid after the closing
of the purchase. Realtors know that it makes
sense to work only with responsible mortgage
brokers.
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