After finding a home and the sales price has been negotiated, now comes the time to choose a lender. So what should the home buyer do when a realtor or a builder recommend a lender?

Realtors usually recommend a lender or mortgage broker because they have been reliable. Realtors like working with brokers they trust and communicate well with. Today, many realtors have in house lending which helps the home buying process go so much smoother. There are a lot of benefits when realtors work in house with there lender. For one, the realtor can remain updated on a daily basis on a loan for their client. Two, having an in house lender makes it more convenient for the borrower as well, especially when complicated issues come about. Lastly, communication between all parties can remain consistent and easy. If the home buyer trusts their realtor then the borrower should trust the lender that the realtor has recommended. Over time when a realtor has developed a professional relationship with a lender, the lender will be more lenient when any problems come about. Provisions can be drawn out without any problems and exceptions can be made.

On the other hand, when buying a new home, builders tend to have preferred lenders, mainly because of all the intricacies that are involved with new builds. While shopping around for a lender, some of these lenders may offer competitive interest rates, but builders may offer no closing costs and other incentives in exchange for higher interest rates. Again, the borrower must do their homework to see what is best for them. Either way when realtors, builders, and mortgage brokers work together they have a network that is streamlined so the closing process can run smoother. Never disqualify a recommended lender, but don.t shy away from asking questions either.