How to get the Right Home Loan -
Buying a Home Part 2
or Which Came First the Lender or the REALTOR?
In part one we covered the obvious – What are you buying a home for? Once you know why you are Buying a Home you need to start searching for a loan.
Now most Lenders are going to say “Talk to me first” and of course I know many quality lenders and I love it when they send me a client that have been working with to get them ready to buy a home. This seems logical as we need a loan before we can start shopping for a home.
But I do not mind when potential buyers come to me first, without getting a loan arranged. And there is a good reason to maybe start with a quality REALTOR. We know lots of lenders, there are lots of lending programs out there. When one lender tells you “No” either to a loan or a type of loan that does not mean another lender cannot do it.
There are an increasing number or Loan Products on the market and this is a good thing. Also many Lenders put overlays on loan guidelines. What is an overlay? Most loans are resold to Fannie Mae or Freddie Mac; government backed loan wholesalers, or are FHA Loans (another government program). There are other programs and most are government backed at some level. All of these programs have guidelines (Requirements) that lenders need to use in order to make a loan. Some lenders (especially larger banks) put overlays on the requirements, making their rules more strict than the actually government rules (they do this to protect themselves). Also as I understand it Loan Underwriters do have some flexibility in interpretation of the guidelines, some lenders are more conservative in interpretation than others.
As a REALTOR I know which lender is best for which type of buyer. Which one has the most chance of getting you the loan you need and want. I can point you to the lender that will get the job done right. Many times I have had buyers come to me thinking they could not get a loan and I have pointed them in the right direction. When there is a problem I also know the questions to ask. Also if I am working with a lender I know the level of cooperation is generally much higher.
Here is a hard truth. There are many great and honest lenders out there, that if they cannot help you will point you to someone else that might be able to if they cannot. However, if they can help you but it might not be the best loan program for you they are going to put you in the program they have that works for you (even if not the best for you). (Not all Lenders but some). There is little if no incentive for a lender if they cannot help you get the loan you need.
As a REALTOR I only get paid if you actually purchase a home. I want to provide quality and honest service. I will direct you to what is in your best interest, but I do not get paid if you do not successfully complete a purchase. I am motivated to see that you get the best possible loan for you.
Not all Real Estate Agents may provide you with the help attention or direction you need. Sadly this is often because they do not see you as being part of their “Niche” or just poor service.
My general advise is if one Real Estate Agent or Lender tells you "No" try and figure out what the issues are and make some calls to others. Google Questions and issues. Or just call Home Point Real Estate at 925-260-4321.
At Home Point Real Estate we are helping Home Buyers turn Houses into Homes. Home Point Real Estate is located in Brentwood Ca and provides service to the East Contra Costa County Communities of Brentwood, Oakley, Discovery Bay, Antioch, Pittsburg and beyond. Give us call regarding Buying a Home, Selling a Home, or Real Estate Investing.
Originally published at HomePointBrentwood.com.
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By Gene Riemenschneider
Broker and Owner
Home Point Real Estate - 925-260-4321 - Turning Houses into Homes
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Home Point Real Estate
50 Sand Creek Road, Suite 316
Brentwood, CA 94513