When you start the home buying process you look at (on average) between 7-14 homes before deciding on that special home; before you’ve chosen and a deal is made between buyer and seller it’s time to work with a mortgage loan officer.
However, if you’re like many homebuyers, you’re not really sure where to start when it comes to your home loan.
In fact, a Consumer Financial Protection Bureau (CFPB) survey found that nearly half of homebuyers go with the first one that comes their way. Can you imagine buying the first home you walked into?
So, how is the loan officer (and the mortgage banker or institution behind them) chosen?
In a recent study by Freddie Mac, one of the nation’s primary mortgage players, they surveyed real estate professionals and found out how homebuyers ended up with their loan officer.
Interestingly, the survey showed that the vast majority (73%) of real estate pros work with just a small handful of lenders (just 1-3).
Additionally, the survey reveals that 76% of real estate agents report that their clients always or often use one of their preferred or recommended lenders.
In short, most homebuyers end up using the mortgage provider recommended to them by their realtor.
What’s more alarming is that from the Freddie Mac survey, only half of the real estate agents surveyed felt confident in educating their clients about mortgage lending.
On top of that, only 30% felt competent to give counsel when it comes to down payment assistance options.
Selecting a mortgage lender for your home purchase is a big decision and there are things you should do to help yourself make the best choice.
Follow these tips to get you started in the right direction.
Ask about experience
Check out the lender’s reviews
Compare loan estimates
Ask about down payment requirements
Ask about their participation in down payment assistance programs
Ask about their fees
In the end, it won’t hurt to ask your agent, but get advice and counsel from a mortgage professional or another trusted financial advisor.
The Certo Team 55 N. Arizona Place Suite #103 Chandler, AZ 85225 602-429-6789
Contact a licensed housing specialist now! 602-429-6789