Home buyers typically look to their real estate agent for a lender recommendation. Real estate agents often refer their homebuyers to a specific lender and vice versa, allowing both parties to naturally promote each other. It’s important that the buyer understand the benefits of this lender-agent relationship, as it can make a big difference in their home buying experience.
As you may know, at The Urban Dog Group, we work closely with Michael Dean, a local loan officer and branch manager for CrossCountry Mortgage.
For today’s blog post, we’re thrilled to share a Q&A with Michael about the benefits of a lender-agent relationship.
To start, can you tell us a bit about your job as a mortgage lender?
To me, being a lender means breaking down the barriers between a seemingly complicated process and the consumer. It’s caring enough to understand each question being asked of you and placing context around your answers.
A large part about my job is understanding that most customers and realtors are intimidated by the mortgage process. After all, they don’t do this every day! Simplifying and explaining things in a way that makes sense to each person as an individual is the difference between a good lender and a bad one. I always tell customers that, although our interaction may only last 30 days or so, I’ve dedicated my entire life to this very process. Purchasing a home is supposed to be exciting, but if you use a lender with a bad process, you’ll quickly see that excitement fade.
What is the difference between a bank and a lender?
Both banks and lenders offer mortgages. Structurally, a bank is a depository institution that also offers mortgages. They typically lend with their own depository funds, and due to their large presence and exempt federal status, loan officers who work for banks are not typically licensed mortgage loan originators.
Now, let’s compare this process to a mortgage lender. Mortgage lenders only offer mortgages. They specialize in them because it’s the entirety of what they do. Loan officers must be licensed to work for a mortgage lender. It’s important to understand that mortgage lenders were not always an option. They were created out of demand within the market. Consumers demanded a better process with licensed loan officers who were accountable to their local market.
Shifting gears a bit, why is a pre-approval letter helpful to the home buying process?
Obtaining a pre-approval is important for many reasons:
Your competition (other homebuyers) have already obtained one.
When you place an offer on a home, the seller and listing agent are going to request a copy of your pre-approval letter. They are also going to call the loan officer directly to verify the strength of your financing.
The market moves quickly!
The last thing you want is to arrive at a showing and realize you found your dream home, but now, you must compete against buyers who were prepared and can show the seller that they have the financing to support their offer.
Your budget is important.
Purchasing a home should be an exciting experience, but if you have regrets about the monthly obligation, it might not be. Obtaining a pre-approval means that you can receive realistic estimates based on your finances before you find your dream home.
Your time is important too.
When you are pre-approved before you begin shopping for homes, you satisfy the paperwork required of you up front. Scrambling at the last minute is not efficient, and this approach will ultimately be a more time-consuming and stressful experience.
You want the best deal possible.
There are often details about your financial profile that we can coach you on while you are out shopping for homes. Usually, there is enough time for us to give you an action plan that can help you achieve a higher credit score and therefore better loan terms.
How do you work with Christine and the Urban Dog Group?
With so much involved throughout the home buying process, it’s important to have a committed and connected team behind you. We work with Christine and The Urban Dog Group by leaning on each other's strong suits throughout the transaction. We are unified by our shared goal of helping to create the best experience possible for the homebuyer.
Realtors work hard to gain the trust and satisfaction of their clients. And in turn, they expect to work with a capable lender who recognizes the importance of that and provides the same level of service. The lender/realtor dynamic comes down to accountability. Because we as lenders need the trust of agents to earn referrals, we simply must demonstrate exceptional service to their clients to continue working with them.
Why is a local lender particularly valuable for the home buyer?
I have lived in Central Florida since birth and worked here for my entire career. Local lenders are 100 percent referral-based, meaning my reputation is held accountable on every transaction.
Additionally, listing agents will contact me to verify the strength and validity of buyer’s financing. Because we fully review your credit, income, and asset documentation up front, I can do this with confidence to give you that competitive advantage.
If you obtain a ‘pre-qualification’ from an out-of-town or online lender, you might want to have a local lender take a second look. There is a reason why listing agents verify every pre-approval. The reputation of your lender matters. Having a local lender that is accountable to the local market matters.
A big thank you to Michael for sharing his expertise and advice!
Let The Urban Dog Group help you with your real estate needs. Contact Christine Elias at caerealestate@gmail.com.
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