What’s in it for my Realtor?
It’s human nature to be cynical, but thanks to the Real Estate Settlement Procedures Act of 1974 (RESPA), you can rest assured that your realtor’s mortgage lender recommendation is sincere.
Realtors, by law, cannot receive monetary incentives for their lender recommendations. In other words, there are no kickbacks. Rates and lender fees are a large part of the conversation when financing a home, but they are not the only consideration and a good realtor knows that.
Cut-rate lenders are notorious for creating headaches, delays, and in some cases, completely killing the transaction. Your realtor’s recommendation is most likely based on their experience with the lender, an effective working relationship and the expectation that your loan process will go smoothly and close on time.
What about the costs?
Mortgage lending is a competitive industry and at the end of the day the difference in cost is probably negligible.
Promotional mortgage rates advertised online are very likely not the rate you will be offered at the end of the loan application process. Even if they aren’t based on an ideal scenario that disqualifies most borrowers (and they are), mortgage rates change multiple times a day.
Until your loan is locked, your final rate is not guaranteed.
Lender fee discounts and closing cost credits are nice, but saving a few hundred dollars over the course of a 30-year mortgage amounts to very little and may not be worth the trade-off.
You get what you pay for.
It’s an age-old adage and it’s true. A mortgage lender who answers the phone at all hours and gives you complete, accurate information probably will cost a little more than the consumer bank that closes at six o’clock every night.
A quality loan officer who considers your long-term goals and takes the time to consult with you about your best options is providing value beyond what an online loan application and automated phone system is capable of.
You are never obligated to use the lender your Realtor recommends, but when you know you are working with a quality lender you can trust that you are well informed and your home loan experience will be as seamless and hassle-free as possible.
Bay Equity Home Loans – Boles Group is a team of lending professionals located in Gilbert, Arizona and licensed to originate home loans for purchase or refinance in nine states (AZ, CA, CO, ID, MN, NM, NV, OR, WA). Boles Group lending professionals have the knowledge and experience to create solutions where other lenders create problems. The team prides itself on responsive, accurate communication and is highly regarded by clients and business associates alike.