Absolutely!If you, as a potential homebuyer, have not yet been prequalified with a lender (or even if you have been), your REALTOR’s first objective is to get you qualified with a lender who
- will be likely to approve you
- is likely to close the deal in timely fashion
- will be credible in the eyes of the seller’s agent
- has a reputation of providing timely, helpful customer service during transactions
Many people think that if they bank with “Bank WF” or “BankBA” or “BankC” that they will get better service, or better rates, or that it will be easier somehow, to get a home loan by using that bank. This is not the case.
Sometimes buyers think that being prequalified with one of the Big Three holds more clout and means more to sellers. Truth is, the Big Three are more likely to ultimately deny funding at the 11th hour to someone who they had prequalified when searching for a home. Seller’s agents know this!
The reason your REALTOR wants you to go with a particular lender is because he has worked with the lender in the past and has had good experiences. This is part of why you use a REALTOR in the first place – for his expertise and experience! So why not listen to him?
It is important to keep in mind that in most cases, your home loan will be sold on the secondary market before you make your first payment. You have absolutely no say in this process, or who winds up with your loan. Your choice of lender during your purchase should be based on that lender’s ability to close the deal and nothing more. Your REALTOR is an invaluable reference for that criterion!
Remember also, that if your REALTOR has recommended one or more lenders to you, his or her only objective is to help you select a lender who will be effective in helping you buy your home or investment property. There are no “kickbacks” or anything else shady going on. If the sale falls apart (and the loan is the most common reason for this to happen), your REALTOR does not get paid, and you do not get your home. Choosing the right lender can make or break a deal, and your REALTOR is trying to maximize the chances that your home purchase will be a success. Take his advice!