Choose Your Lender Wisely
"But I'm selling my home, so why should I care about a lender that the buyer hired?"
Lenders are the backbone of every great real estate transaction (and every poor one, too). They set the tone for a number of pieces in your real estate puzzle and can make the entire deal pleasurable or one that you'll talk about at dinner parties for YEARS to come.
The lenders are also part of the contract that you will receive from a buyer wanting to purchase your home. When you say "yes" to the contract, you're also saying "yes" to the lender. After 20 years of listing and selling property for central Phoenix clients, I'm still surprised to see other listing agents skimming past this important piece of information. Namely, who is lending the money and what it their reputation? As the seller, it's your right to know and it's your right to say "no!"
Great lenders, just like great agents, make the selling side of any transaction seem effortless. They allow you to concentrate on everything you'll need (like purchasing your next home, packing, scheduling movers, utilities, etc..) while they work on the buyer's side to arrange appraisals, assemble documents and prepare everything for a timely closing.
What happens if a bad lender is involved? Well, just imagine having all of your possessions packed and loaded by the movers when your agent calls to say "there's a problem with the buyer's financing." I'll leave the rest to your imagination, but suffice to say that your dream could quickly become a nightmare...
To all home buyers everywhere:
It’s a misconception that when an agent recommends a specific lender to his clients, the agent gets paid (a kickback) as a result. But, this couldn't be further from the truth. In fact, it’s illegal!
The REAL reason that an agent recommends a lender is because we know they’re good. In fact, they’re probably great! And passing a great lender on to our clients makes us all look good!
That same lender can make you look great to the listing agent who's looking over the offer on the house you're trying to buy, too. When a listing agent receives an offer on their client's property, they are representing the seller's best interest. So, if you've chosen a great lender (one that your agent has worked with repeatedly) your agent can relay his close-working relationship to the listing agent, which makes your offer stand out from others. That lender will also speak directly to the listing agent and you'll shine again!
Good lenders are hard to come by and great ones? Well, they’re the people we try to keep busy with our client's purchases.
Great lenders almost always do the following:
1. They give you their cell phone number and they actually answer it when you call or text.
2. They don’t have East Coast hours and a “press 1 to be connected to a lender” system attached to a centralized phone number.
3. They ask for a TON of information right out of the gate (bad lenders generally ask for very little to begin with, then surprise you with the requests later, when you thought they already had everything they needed).
4. They work WITH your agent in drafting contract-specific pre-qualification letters.
5. They quickly answer the listing agent's questions and concerns when they call and send regular updates on your loan's progress to all parties without being asked.
6. They never put off until tomorrow what they can get finished today.
7. They deliver closing papers to the escrow company on time (often early) and stay in communication with your escrow officer.
8. They know their underwriters and what they expect, and they assemble everything for them correctly the first time.
9. Oh, they’ll probably make you angry. They’ll ask for something, and hound you relentlessly until they get it. But, that's because they're on the ball and working hard for you!
Thanks for reading!
If you'd like MY List of Phoenix area lenders, just ask!
If you'd like to talk about what I can do for you, call me anytime at (602) 919-8471 - or fill out the form below!
