I already have a lender, why do I have to talk to the seller’s lender?
When buying real estate, it may be that you need to speak with another lender also.
Sometimes, the agent you are using to buy a home, has their own “trusted representative”.
Maybe you are buying a new home from a new home builder. They all have their own lenders and require you to qualify with them too. Even if you are going to stay loyal with your lender
If you are buying a resale home, in some cases, the agent representing the seller has convinced the seller it’s going to be necessary to have all buyers be double checked by another lender of their,(the seller’s agent’s), choosing.
I Don’t Steal Clients!
I don’t “steal” any of my clients from a lender they like, they found or one they have been referred to.
I believe this practice is bad for business and is equated, by me, to taking food from someone’s mouth.
I protect and serve our clients
Having said that, if the lender one of my clients is using, even my own, is taking advantage of my clients, I will be quick and relentless in throwing the “flag on that play!”
Buying a resale home
When it comes to buying a home, sometimes the “seller’s Realtor”, if they are savvy, experienced and knowledgeable, will explain to their seller that they are going to have every buyer “double app” or prequalify with a lender of their choosing. They also make this part of the MLS criteria for the agent’s writing offers to do before their offers will be reviewed.
This could also, be part of a counter offer, “Buyers to double app with Lender ______________ with ________ Lending Company, within 72 hours of offer acceptance.”
Double Application(app) – Filling out another loan application and submitting all required paperwork to another lender. One other than whom the buyer is currently using and pre approved/qualified with.
This helps in the real estate process with “I could not get a loan” issues that come up, more often than they should!
New Homes – New Construction – New Builders
This is where the “double application” process is really adhered to like glue.
In most cases, the lender associated with the New Home Builder, can offer much better incentives than any private mortgage company, mainline bank or credit union.
Recently, I ran into a New Home Builder that did not offer anything special for the buyer’s working with their lender. I thought that was interesting and maybe a breath of fresh air!
When you want to buy a New Home, you need me on your Side, watching the process!
Side Note for All Real Estate Buyers
If you are speaking with a real estate lender and if they have provided you a “pre approval” letter without requiring you to send in any financial documentation – Run…
Some lenders may be able to generate a pre qualification letter with a phone call, but a pre qualification letter cannot compete with a Pre Approval Letter.
Also, a Pre Approval Letter cannot compete with Full Underwriter Approval.
Full UW(underwriter) Approval – you have already had everything scrutinized by the trier of fact within the Lending organization. All Documentation that is required has been held up to a microscope in order to provide this “high level” of approval!
Reach out to me with any questions, concerns or comments. I will be here for throughout all of the real estate processes. From considering to buy and or sell – to all future transactions!