lender recommended by my realtor

Guest

Hi,

I had some troubles in the past which delayed my dreams of a home getting fulfilled. Now I am planning to buy a house. Almost, every thing finalized. My realtor has recommended a lender. Do you feel anything wrong in going for it?

dave

Samantha · Posted: Sat Nov 26, 2005 4:08 pm Post subject:

Hi Dave,

It's good to see you coming out of your troubles and making a positive move towards your dream. Purchasing a home is one of the major decisions in a person's life and I would like to see you through all its processes smoothly.

So far your Realtor is concerned to help you select the home of your dreams, it is quite ok. But blindly choosing a lender as per his recommendation will not be a wise decision. It involves a lot of money, possibly the majority of a person's earning gets involved in the process of buying a home for him.

You should always consider the fact that a realtor is not a financial expert. He may know some processes as he is in a related business but he may not be aware of the best mortgage lender for you.

Also, a realtor may see his own interest which is quite normal as faster the loan closes, sooner he get his commission from the house closing. So, he may recommend a lender who is fast in closing down the loan. But he is not necessary to be the lender with the best rates for you.

It may also happen that your lender is referring you to a friend of his from where he can earn some commission too.

Even if he is well-known to you, then also you must make a search on your own and contact at least 3 to 5 mortgage companies before taking a decision. This will protect you from paying higher rates and may help you to get the best lender who is most convenient to you.

So, I shall recommend you to do your own homework before taking such a major time and money involved decision.

God bless you.

For MortgageFit,
Samantha

Guest

Hi Samantha,

Yes I understand your point. Actually I was in a hurry to enter my home when one my friend suggested for a second opinion.

I think it is better to give some more time to choose the best mortgage lender for me.

Thanks,
dave

blue · Posted: Sat Nov 26, 2005 4:55 pm Post subject:

Hi dave,

I think these are some points which I feel should be considered in selecting the best mortgage lender instead of believing on anybody's recommendation -

He should be able to approve a kind of loan that fits your budget
He should charge simple interest and nor penalize you for early payments
he should have the attitude of rewarding people who make successful repayments in time by lowering the rate in need
He should maintain reporting the credit agencies monthly

I shall be happy if these points become helpful to you.

Regards,
Blue

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