Best answer: Why does my Realtor want me to use a local lender?

Do Realtors 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.

Why is it better to use a local lender?

Local lenders know the market in your area better than anyone else. That means they have a better understanding of property values and the local economy. When you work with a smaller, local lender, you’re paired with a licensed loan officer and team of professionals who are experts in the region you’re buying into.

Should your lender be local?

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.

Does it really matter what mortgage lender you use?

Today’s mortgage rates from mortgage brokers and bankers are highly competitive. To get the best deal on a home loan, experts say you need at least three or four quotes. In the end, it doesn’t really matter which type of lender you choose as long as you know you got the best deal available to you.

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Can a seller tell you what lender to use?

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. Heck, they could dictate they will only accept a sack of nickels if they really wanted to.

Do I have to use a preferred lender?

First, remember that using a preferred lender is always optional. You never have to use a real estate agent or builder’s preferred lender, even if they claim others “always use them.” You have every right to use the lender that works best for you.

What would be the advantage to the lender what would be the advantage to the borrower?

On the borrower end, it’s obvious that the advantage lies in obtaining the funds to complete the home purchase. On the lender end, the advantage lies in obtaining income in the form of the interest and finance charges on the loan. … The borrower could pay all or some of these charges.

Is it better to use a local mortgage broker?

Your local lender may not offer the most competitive mortgage rates around, but if you find a lower rate elsewhere, they may be able to match it. Keep in mind: As little as 0.25% difference in your interest rate can translate to thousands of dollars saved over the life of your loan.

Are big banks better for mortgages?

Because of their size and financial resources, big banks may offer lower mortgage rates than other types of lenders. Paying a lower rate reduces your monthly payment and saves you money on total interest expense over the life of your loan.

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How much do mortgage lenders make on a loan?

Mortgage loan officers typically get paid 1% of the total loan amount. We explore the reasons why loan officer commission is bad for consumers. And we offer an alternative — Better Mortgage has loan officers who don’t get paid commission, ever.

Do mortgage brokers get better rates?

They will probably save you money. Mortgage brokers either have access to thousands of lenders and they can find you deals, or they are tied to specific lenders and they may be able to get you an exclusive deal. Ultimately, you are probably more likely to get better rates with a mortgage broker than without.

Do mortgage brokers go to closing?

Real estate agents are not required to be at the closing, but may choose to attend to make sure that the closing transaction goes through.