Filed Under Buying, Lending · Tagged: Inspector, Lender, Recommendations · Print This Article
This is something that comes up a lot with my buying clients. “Why should I use the people you recommend?”
I typically have two types of buyers. People who like having a recommendation from me and choose to use a lender, inspector or other contact I typically work with; and people who become skeptical and choose to find their own, often because they are convinced they might find a “better deal.”
First, buyers must be aware: your agent does not receive any benefit from recommending a professional to you. It’s illegal, unethical, and will not happen, and if you’re working with me I can guarantee the accuracy of this statement. Buyers are required to choose their own partners — I am not going to require you work with a particular individual or company — this is also unethical and illegal for an agent to do.
So, why does a Realtor reccomend a lender or inspector to you?
Every day we work with lenders, inspectors, title companies, or even repairmen or other contractors. We develop a relationship with these partners, and know and trust their work. My job when hired by you is to get you to closing successfully. The best way I can do that is help you assemble a good team.
And because I work with these individuals and companies repeatedly, they provide me with continually good service because they don’t want to lose the business that I often send their way. And the reason I keep recommending the same people is because they continually provide this good service and continue to help me get my buyers to closing successfully.
We’ll discuss lenders aa an example, which is an important selection. The lender is involved in every step of the closing process, and determines so many factors. When working with lenders I am familiar with, there are certain things I can expect. First of all, I know the lender will work quickly and as efficiently as possible, which matters a lot in this current economic climate. Remember, new appraisal laws and other factors are making your loan take longer to come through.
I can trust that the lender will carefully review your finances and give you the most realistic information regarding your potential for final loan commitment. I know that when you or I contact the lender for information, he or she will respond to all questions in a timely manner. These things can make the difference between closing and not closing on your house!
Many buyers want to ‘rate shop,’ but that may not help you. Rates change by the hour. Any lender can promise you a lower rate, but that doesn’t guarantee you’ll get it. Also, while you may receive a small difference in rate (these differences can be in the tenths of a percentage), you may get no guarantee on service. A rate that is lower by one tenth of a percent does not help you if you are unable to close on your home because of a lender’s slow responses, poor follow up or incomplete review of your qualifications. You will have a relationship with this lender for a long time, good service matters!
If your loan doesn’t come through at the last minute, you will either lose your house or have to find a last-minute loan somewhere else, which could result in unattractive mortgage terms. This happens! My sellers are also affected when a buyer uses an irresponsible lender. A buyer with no loan cannot buy a house!
Lender selection can also affect title company selection. These are the people that prepare your HUD and all final paperwork that closes your sale. Their attentiveness, attention to detail and responsibility also affect your closing.
The bottom line: I don’t recommend people for my benefit — I recommend people for your benefit! Always know that a buyer has the power to choose anyone for their team, and never has to take my recommendations. However, my recommendations come from years of working together on many, many home sales. When choosing your partners, you really must consider your chances of getting to closing smoothly and successfully! And no matter who you choose to work with, I am on your team and have your successful closing as my main goal.
In addition to lenders, other key people I will recommend to you include: Inspectors, Title Companies, Home Owners Insurance, Staging Professionals and Home Warranty companies. Here’s some more blog articles about my contacts. You can ask me any time for a recommendation!
Wells Fargo: One of our Safest Banks
What is a Good Faith Estimate?
Your Credit Score
Your Inspection
Staging your Home
Homeowners’ Insurance
Title Insurance
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