As a real estate agent, one of the most important decisions a client can make during the home buying process is choosing a lender. A lender is responsible for providing the financing for a home purchase, and the right lender can make the process smooth and stress-free. However, the wrong lender can cause a host of problems and delays.
Track Record
When choosing a lender, it’s important to consider their reputation and track record. A lender with a good reputation will have a proven history of closing loans on time and providing excellent customer service. Additionally, it’s important to look for a lender who is knowledgeable and experienced in the type of loan that you’re looking for. For example, if you’re a first-time homebuyer, you’ll want to find a lender who specializes in first-time homebuyer programs.
Interest Rates and Terms
Another important factor to consider when selecting a lender is the interest rate they offer. Lenders often have a range of interest rates available, and it’s important to find the best rate that fits your budget. However, it’s important to remember that the lowest interest rate isn’t always the best option. Sometimes, a lender may offer a slightly higher interest rate but with better terms and conditions that can save you money in the long run. If you need more information on lending terms and the difference in lending programs, check out this article by consumerfinance.gov.
They Can Make Mistakes
Choosing a lender is also a big decision because of the potential consequences if something goes wrong. For example, if a lender makes a mistake on your loan application, it can cause delays in the closing process. This can be frustrating for everyone involved and can even cause the sale to fall through. Additionally, if a lender doesn’t disclose all the fees associated with a loan, it can lead to hidden costs and surprise expenses.
A Real Estate Agent Can Help
As a real estate agent, I often work with a variety of lenders and have a good understanding of their reputation and track record. And due to this intimate knowledge of lenders, I often can provide valuable insight and recommendations on which lenders are the best fit for my clients. So when choosing your lender reach out! I’d love to provide you with a few great recommendations. And I never profit from referring my clients to any lender. My only benefit is the peace of mind knowing you will get the service you deserve and the loan will be funded on time. If you want to hear a couple of horror stories where the lender caused multiple deals to fall though, check out this Instagram post. I talk about a couple deals where the lender (that I did not recommend) ended up killing a couple transactions within days of closing!
In conclusion, choosing a good lender is crucial in the home buying process. It’s important to do your research and find a lender with a good reputation, who specializes in the type of loan you’re looking for, and who offers the best interest rate and terms. Remember, if something goes wrong with your lender, it can cause delays, added expenses, or even you to loose out on a home! So it’s important to make the right choice from the start.
If you wish to learn more about lending programs, common types of mortgages, or down payment assistance programs that are available, check out my webpages: Home Mortgage Loan Types or Down Payment Assistance Programs