Real Estate News And Views

Realestatelicense.com has created this blog to keep you informed on recent real estate news, views, and topics. Real estate is a very dynamic field. Everyday there's something new and exciting happening in the world of real estate. Use this blog to stay on top of current real estate events, news, and views and support your real estate license and career. As a licensed real estate professional, you need to know this information.

Help Your Clients Choose the Best Lender

Once you complete your real estate license course, you should be prepared to help clients avoid typical buyer pitfalls. This includes choosing the wrong lender.

For example, let's say your buyers received three offer letters from three different lenders. Now they want your opinion. Should they go with the lender offering the most appealing interest rate? Maybe not. Before your buyers place their trust in any lender, do a little investigative work first.

Different circumstances require different lenders

Just because a lender touts a widely known reputation doesn't mean it's the best fit for your client's circumstances. There are lenders who specialize in working with first time buyers, buyers with small down payments or poor credit and more. Working with a lender who has expertise in your buyer's situation could improve their experience and possibly lead to a more reasonable interest rate.

More choices are always better

There's a huge variety of loan options out there, so your buyer's lender should offer an array of choices as well. From the classic fixed-rate loan to jumbo loans and option ARMS, a good lender will match your buyer with a mortgage that compliments their financial status and risk level.

Analyze fees too

Most potential homebuyers become consumed with the hunt of finding the lowest interest rate. But are there extra fees associated with the loan offering that too-good-to-be-true rate? Be smart and request a "good faith estimate" from your client's potential lender. This estimate should provide an overview of all costs associated with the entire term of their loan. Make sure to also ask the lender about other potential fees, like penalties or locking in a rate. Overall, you want your clients to feel confident when choosing a lender. If you feel they're omitting important information, encourage your buyers to move on.

Customer service with a smile

Is the lender paying attention? If your buyers request a 30-year fixed rate and the lender pushes something else, than beware. There's nothing wrong with making other recommendations, but the lender should immediately address your request as well. Additionally, the lender should provide your clients with answers to their questions in a manner that is helpful, informative and patient. If they rush them out the door at that time, don't expect the lender's responsiveness to get any better later down the road.

Get referrals

Ask family, friends and co-workers if they've had any good - or bad - experiences with lenders. Pay attention and even take notes if you have to. It's also a good idea to check out the web, as it's a popular sounding board for upset individuals ready to share their stories with the world.

More than likely, your buyers will appreciate your lender expertise and help you defy market challenges by referring you on to their own personal network.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: Accredited Real Estate School, Real Estate, real estate license course