Should I Use My Agent’s Preferred Lender?
Deciding which lender to use when purchasing a home can play an important role in some of the financial aspects surrounding the home buying journey, as well as the transactional aspects like processing time and how smoothly a client gets to closing.
What’s The Difference?
As a buyer, you’re entitled to choose the lender you entrust with the processing of your home loan. However, its not uncommon for a buyer to feel unsure which lender is best for them, or what criteria even to consider when selecting one. In these cases, the buyer’s agent will suggest using their preferred lender- someone whom they’ve likely worked with regularly in the past and trust with their client. So, what’s the difference? How do you know when to use your agent’s preferred lender, and when to use someone else?
The Benefits Of Preferred Lenders
There are a couple of built in benefits or using the preferred lender. First, this is someone your agent has worked with before, and if referring them regularly, obviously trusts them to uphold the same reputation with you. Your Realtor is also going to be familiar with the work ethic and communication style of the lender, and enjoys working with them- this is likely to lead to a smoother transaction overall. Lastly, a preferred lender can often provide a quicker pre-approval turnaround, giving peace of mind to everyone involved.
Be A Smart Buyer
On the other hand, buyers are always smart to do their own research before defaulting to the lender of their real estate agent’s choosing. In fact, you should be researching lenders and thinking about your selection long before even contacting a realtor. This allows you to come to the table with a pre-approval letter in hand- a gesture that shows you’re serious about your home search and ready to shop. Even after you’ve got a pre-approval in hand, you always have the choice to opt for your agents preferred lender, should they be able to beat the interest rate or offer other incentives that may coax you to make the switch before going under contract.
Do Your Homework
Regardless of the route you ultimately go, doing your homework before making a selection can potentially save you thousands of dollars over the life of your loan- a decision consumers rarely regret. Bottom line: education is key. You can easily review your mortgage options and access an index of helpful tools and homebuying resources in any state with ReviewMyMortgage.com.