Brought to you by the Builder Realtor Relations Committee of the Sales and Marketing Council of the Northeast Florida Builders Association
Q. What are the benefits of using a preferred lender?
A. The relationship that the Realtor has with the preferred lender is so important in having a smooth transaction.
Communication is key between all parties involved, simple issues like returning phone calls and e-mails in a timely fashion. We are in a world of immediate response and little or no communication is unacceptable in today’s market.
Q. If a buyer decides to use an outside lender, what are the guidelines?
A. Some incentives may be limited to buyers when the preferred lender is not used in a particular transaction. This situation we see mostly in new construction with the builders preferred lenders.
Q. How do you guide buyers who want to “shop” lenders?
A. We mainly inform the buyers to do their research when looking for competitive quotes from lenders. It’s not always just about the best rate or the selection of types of mortgages, It’s about the customer service, the reliability and the stability of the company they are about to choose.
Q. How do you qualify Lenders?
A. Years of home lending experience, Customer focused, Superb communication, competitive rates, selection of types of programs to fit the needs of all types of buyers, accountability to the customers, knowledgeable in their field of expertise and dedicated Mortgage Loan Officers.
Q. What are the benefits of using a preferred lender when working with a builder?
A. First and foremost, it makes for a smoother transaction. Also, because of the relationship with the builder, the fees and rates are usually tough to compete with. Most builders, if you use their lender, will pick up a good portion if not all of the buyers closing cost.
Q. If a buyer decides to use an outside lender, what are the guidelines?
A. Typically, the builder will not cover any closing costs or at least there will be a reduction in the amount of cost that they will cover.
The incentives for using the preferred lender are there for good reason. You can obviously imagine a builder with say thirty closings at the end of a month, all with thirty different lenders. That would make for a rather chaotic scenario regardless of how proficient the lenders.
Q. How do you guide buyers who want to “shop” lenders?
A. I usually have my buyers who want to shop ask for a “Good Faith Estimate” from each lender. This way we can compare “Apples to Apples”. Some lenders, who offer great rates, may be making up for those rates with higher costs. So to have a “Good Faith Estimate” allows you to do the math, literally, and decide what is going to be best suited for you.
Q. How do you qualify lenders?
A. All things being equal, I tend to qualify lenders based on service and relationship. As long as the numbers are comparable, I will go with the lender who I feel will provide the best service. At the end of the day, any recommendation to a client is going to reflect, either good or bad, on me. So that said, if the rates and the cost are a dead heat, I’m going to recommend the lender who I feel will give the best service and be most attentive to the needs of my client.