My pal Sally is thinking of buying a home. There is a home she likes but she does not know if she can afford the house. Today she is meeting with a real estate broker where she will discuss financing and lending for loans for the house she wants to buy. I do no think she should take their word alone that she should also talk to to a lender as well and that it should be an independent lender not one that they suggest. The Broker claims that she has over 30 years of knowledge in helping people with loans and lending issues. My point to my friend was that just because she claims to have 30 years of knowledge does not me she actually knows what she is talking about when it come to leanding and loans issues. Also the broker she is meeting with and the house she likes are two diffrent comapanies .Am I being worried for nothing ?
yes you are worried about nothing. This realtor is trying to help. If she is honest then let her recommend a loan broker. 30 years of experience is better than your friend picking name out of yellow pages.
You are correct to worry. Check out some local mortgage bankers (they loan their own money) and mortgage brokers (they loan someone else's money) to see who might be the best choice for Sally. See if any of the stimulus funds have made their way to your city. Some cities are just starting to offer special rates to get home sales moving.
the schooling and licenses required will range via state. Basically, an agent is an agent of the dealer or a consultant of the dealer. The dealer has accomplished extra schooling and contains extra legal responsibility. The dealer is the executive of the Real Estate workplace and manages the marketers who paintings in that workplace. In normal, the character running instantly with the customer or vendor is an agent. Any fee at the sale of a condominium is divided among the agent and the dealer. Occasionally, an agent will entire the schooling and license specifications and buy the indispensable coverage to emerge as a dealer and can paintings independently as a dealer/agent.
I would contact another mortgage broker after meeting with the real estate person (who might also be a mortgage broker). A mortgage broker gets daily rate sheets from a bunch of different lenders. And, if the broker ends up securing the loan for the client, the broker gets a commission from the lender. And, the amount of the commission is based on the terms of the loan (interest rate, amount of the loan, how many discount points paid, etc.). Two different mortgage brokers will basically have the same rate sheets to work off of. But, some mortgage brokers will steer the client toward the mortgage that looks like a good deal, but isn't the best one available, because it offers the broker the better commission. Other mortgage brokers even roll part of the commission into the borrower's loan fees, resulting in what they call a no-cost mortgage. These tend to be slightly higher interest rates, though, so the commission is high enough to pay the borrower's fees and still give the broker a decent commission. When you get pre-qualified for a loan, this is where a mortgage broker or lender has reviewed your financial status and says you can afford to borrow x-amount of money. And, this is usually required before a buyer can submit an offer. But, the buyer can choose whatever mortgage broker or lender he wants when it comes time to make the actual purchase. So, like buying anything, the smart thing to do is shop around with a couple of mortgage brokers and see who offers you the best deal.
