It’s all about the rate, right? “I mean, as long as my monthly payment is the lowest – what else could matter!”
A lot, actually! There are a few components to lending that Buyers don’t often think about. The first and most important from an agent’s perspective? A level of care and devotion to the transaction from the lender. Savings, sacrifice, emotions and frustrations can go into a real estate transaction. The lender’s role is just as important as yours, and everyone else involved in the transaction. They can lose this for you at any time, for a multitude of reasons, too. Being an agent, I can say that the second most important relationship to a transaction, aside from the buyer, is the relationship with the lender. Afterall, no loan = no house.
Three Things to Look for In a Lender:
1. Information
We don’t do this every day (or maybe you do). Homebuying, I mean! The average person will purchase between 1-3 homes in their lifetime. It will also likely be the largest investment you will make in a lifetime. Great information allows us to make great decisions. If you aren’t receiving a wealth of information from your lender…it may be time to look elsewhere.
2. Options
Interest Rates aren’t always what they seem, especially with all the various loans products out there. Some rates cost money; some give back. Some lenders charge origination fees (also known as Points), Underwriting/Processing Fees, other fees, and some do not. Sometimes you think you are getting a great deal only to sit at the settlement table reviewing your closing numbers and everyone looks as if they’ve seen a ghost! Ask questions, get estimates from a few and certainly, consult your real estate agent.
3. Availability
This one is HUGE!!! Picture this, you and your agent are out on Saturday afternoon, just soaking up the warm summer sun and suddenly…. "This is it! This is the perfect house! We finally found it!” You decide to write an offer. Well, that offer will likely need a lender letter, or you need confirmation that your offer is within your budget. You and your agent call the lender only to receive, “Hi this is _______, I can’t take your call,” (you know that one!). Sunday rolls around and nothing. What about Monday too? On Tuesday, you run to your phone to check the property (just to be sure you love it as much today as you did yesterday) and IT'S UNDER CONTRACT. How does that make you feel?
Having a reliable lender is so important and suddenly….
It's NOT just about the Rate.
We’d love to hear from you if you would like more information and some referrals to great lenders in our area. As always…. we look forward to speaking with you soon!