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Let’s imagine that you’re a potential home buyer who has looked at a few very promising properties. Your real estate agent recommends that you get pre-approved for a loan, and they hand you the name and information of a mortgage lender they know. Should you use it? Or toss it and find your own lender? Before you throw the card in the trash, here are a few reasons why you should seriously consider your agent’s recommendation.

Your Agent Is Not Making A Financial Gain – Unfortunately, it’s natural within the business world to think that if someone is trying to help us, there must be an ulterior motive for it. In this case, the motive is that your agent is doing their job—helping you acquire the property you want! It is actually against the Real Estate Settlement Procedure Act (RESPA) for your agent to receive any compensation from the lender for their referral!

The Agent–Lender Relationship – If these two have worked together in the past, chances are things went smoothly on their last closing. There are so many horror stories when it comes to lenders that range from missing documents to careless filing to forgetfulness that all play a significant role in your financing. A solid relationship between these two vital characters should increase your confidence in your real estate transaction being done correctly and carefully.

Don’t Base Your Decision On Minor Fees – It’s natural to look for the best deal on your home investment, but in most cases mortgage lenders will offer relatively similar interest rates since they all are working with one common factor—your credit score. Interest rates also change a variety of times throughout the day. Don’t get caught up in obsessing over percentages of a single point going up or down.

Ultimately, you share the same goal with your agent and lender. You want to achieve your desired property, and they want to help you get there—that’s how they keep their jobs! Furthermore, if you don’t end up receiving the keys to the property, your agent won’t be likely to receive commission. Don’t let paranoia stand in the way of this advantage during your home buying process. Utilize the built relationships within the real estate industry.

At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: Is a Gated Community Right For Me?

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