Question: Should I use the lender my realtor recommends?

Should you go with a local lender?

Local lenders have a better reputation for closing loans on a timely basis. If the closing of a loan has to be extended by a week, and then extended again after that week is up, this could cause a certain amount of stress and uncertainty.

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.

Does it really matter what mortgage lender you use?

When it comes to rates, there’s no hard-and-fast rule about mortgage lenders vs. banks. The rate you’re offered has more to do with your qualifications — credit score, down payment, loan amount — than the specific lender.

Why do realtors prefer local lenders?

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.

THIS IS IMPORTANT:  Why is it so hard to buy a house in 2021?

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.

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.

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.

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.

Is it better to go with the builder’s lender?

The bottom line: Should you use your builder’s preferred lender? Truth is, your builder’s preferred or in-house lender may provide the best loan deal that saves you the most money and time. They may offer incentives, a longer rate lock, and/or a lower interest rate than competitors.

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.

THIS IS IMPORTANT:  Do REITs qualify for Qbi deduction?