Why do realtors want you to use their lender?
Some agents choose their preferred lenders because they get deals closed quickly and reliably. That’s also good for buyers, but the missing element in this equation is the loan cost. The in-house lender may feel that they have you “buttoned up” as a customer. They may feel they no competition for your business.
Can you be a mortgage lender and real estate agent?
Your mortgage broker can also be a licensed real estate agent. Although some people prefer the idea of a one-stop-shop service, others prefer keeping their mortgage choices and real estate shopping separate, to ensure they are being given the right advice with the best possible intentions.
Why you shouldn’t use the builder’s lender?
The referral fees, or kickbacks, they engage in with the “builder’s lender” is not okay. It costs you money and it’s illegal per the The Real Estate Settlement and Procedures Act (RESPA). … Settlement costs are as swollen today as ever and referral power of builders remains unchecked.
Can seller dictate buyers lender?
The seller has no right to dictate these terms
It is their home, they can dictate pretty much whatever they feel like (within legal limits of course). A seller can dicate that they will accept only cash offers. … If a seller wants to dictate that a buyer must be pre-qualified with a specific lender, so be it.
Do lenders or realtors make more money?
Loan officers work in the financial industry while real estate agents, also known as real estate sales agents, work in sales. Loan officers require more formal postsecondary training, earn a notably higher salary than real estate agents and currently have better job prospects due to a faster job growth rate.
How do mortgage brokers rip you off?
The Lender Charges You Upfront Fees Before Pre-Qualifying or Pre-Approving. … In some cases, lenders accept your application and then charge you fees even if you cannot qualify for the mortgage. This is a way lenders rip off unsuspecting borrowers.
Can a builder force me to use their lender?
A builder can’t require you to use any specific lender, nor can they charge you more for the home you are buying for not using their preferred lender. They can, however, make it appealing to you to use their lender by offering incentives.
Do lenders offer incentives?
Mortgage lenders offer incentives
Whether it’s for a first home mortgage loan or for a second mortgage, the idea is boost mortgage applications by offering incentives. Some incentives, like green mortgages, offer to waive closing fees if you plan to make energy-efficient changes.
Do sellers prefer local lenders?
Sellers and listing agents typically prefer when buyers use local lenders. They know the norms of our market. If you’re in a competitive situation, using a respected local lender may just tip the scales in your favor.