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The Best Advice for Home Buyers is to Know Your Lender
If you’re thinking about buying a home, yet recent news stories about the national housing market have you wondering if you should hold off, you’re not alone. Potential buyers throughout the country are trying to understand what the current market means for them.
While many experts agree that it’s a great time to buy, only you can decide if this is the right time for you and your family. If you are shopping, the single greatest piece of advice anyone can give you is to know your lender. There are many reputable lenders in every community; the key is to find one that’s right for you. Here are a few tips to assist you.
Take your time.
Every potential home buyer has options. Don’t believe companies who say they’re your “only hope” or try to pressure you into completing an application before you’ve had a chance to shop around. You are in the driver’s seat, regardless of your financial factors. If you qualify for a loan today, you’ll qualify in a few days or weeks so be cautious of someone who pressures you to complete an application with them if you’re not ready.
Choose a reputable direct lender with capacity.
In turbulent times, protect yourself by going to the source for your loan. There are two compelling reasons why it’s best to work directly with a lender, rather than a broker.
- First, a lender will not share your information with additional companies before the loan closes, as they are the company that actually makes the decision. A broker will pull your credit and share your information with one or more companies as they look for a lender to essentially “buy” your loan.
- Second, all lenders and brokers are subject to market turbulence, but when a direct lender commits to lend you money in writing, you can trust it will happen. There are many reputable brokers, but they’re not actually funding the loans. Brokers must take your information and shop for a lender. Limit the possibility of encountering problems by going direct to the source for your loan.
In most regions there are as many brokers as there are lenders. If you want to know the capacity of the company you are considering, simply ask if they approve and fund their own loans. If the answer is yes, they are a direct lender. |
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