Realtors and mortgage lenders go hand in hand. It’s almost like what came first, “the chicken or the egg?” Agents can’t survive in the real estate business without a good mortgage lender or two, and where would a lender be without real estate agents?
There are several opinions on whether you should find a real estate agent or a lender first. Real estate agents advise that if you are looking for Deer Valley homes for sale and you are a first-time buyer, find a real estate agent first. Mortgages are important, but a real estate agent is just as or more important if you are not experienced in finding and buying a home. Realtors know competent mortgage lenders, and many have lists of recommended mortgage lenders.
Still, if you hire a real estate agent and start looking at homes without being preapproved, no one knows what you can afford. Without a preapproval letter, it is almost impossible to make a valid offer on Deer Valley homes for sale. Interesting dilemma!
A real state agent will be with you from start to finish and involved in all areas of your home buying experience. Once you have found the home you want, a mortgage lender handles the financing – which is important. A realtor-recommended lender can be very important. Realtors know what lenders will help you with paperwork and some may know what lender is quick and efficient. Before you ask, however, do note that realtors do not receive kickbacks for recommending a mortgage lender. It is against RESPA rules to give kickbacks for referrals to real estate agents.
Choosing a Mortgage Lender
One of the most important factors to consider when choosing a mortgage lender is not the interest rate or the fees. The bottom line is most lenders charge about the same rate. Lenders have access to the same bags of money, and some lenders are limited in the types of loans and terms they can offer. They often only quote in-house rates.
A mortgage broker, however, has access to larger pools of money from a wide variety of sources. Until you lock in your loan rate, interest rates can vary since rates change more than once a day. A rate promised in the morning might be higher by the afternoon.
Mortgage lenders advertise special deals like free appraisals for your Deer Valley home for sale, the cost of the appraisal might be buried somewhere else in the loan. A mortgage lender might offer you a free home security system, or a poured patio. Great. The cost of these add-ons is absorbed into the monthly fee you pay to the home security company or the cement contractor. Believe the adage; there is “no free lunch.”
When choosing a mortgage lender, listed are five tips for finding the best lender.
· Get your credit score in shape. The higher your credit score, the better off you will be.
· Know what types of lenders are available. Check out credit unions, mortgage brokers and bankers, savings and loans, correspondent lenders and mutual savings banks. It’s a good idea to read through their registration. Your mortgage lender needs to be registered in the state where you are purchasing real estate. For example, Deer Valley homes for sale are best served by Utah lenders.
· Get preapproved
· Compare rates from different mortgage lenders
· Ask the rights question and read the fine print.
Ask for lender referrals from friends, family, and your real estate agent. Read online reviews and do your research.
Your real estate agents want your mortgage to close smoothly and without any surprises. When you are financing your Deer Valley home, many things can go wrong from mistakes on paperwork to misplaced documents. Real estate agents who have routinely closed many homes have experience working with a variety of mortgage lenders. They know which lender keeps their promises and delivers. They know which lenders are not detail-oriented. Mortgage lenders who are on lists held by real estate agents know that if they fail to perform up to expectations, the agent will not refer business to them. “A referral from a real estate agent to a mortgage lender is earned business; it can’t be bought.”
When searching for a lender for your Deer Valley home for sale, look to Utah Luxury Real Estate Group. They are based in Park City, Utah, have the experience to find you the best home value in Deer Valley, and they know what lenders will be best for your needs. “We live, work, and play in Park City, and we’d love to share our enthusiasm for this amazing community with you.”