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I contacted an RE Agent about buying, a Condo or small home in Arizona. I'm already Preapproved for the VA Mortgage thru Vetetans United Home Loans.
This agent told me she never heard of the company. She then gave me the names of two Mortgage companies she does business with. She also told me not to tell them what Im already approved for. I'm ok with the company I chose, and their approval amount is where it should be for my income. Obviously the agent wants me to have a higher approval amount.
I didn't ask yet but my guess is this agent, has no interest in dealing with Veterans United. Probably is also wanting to steer business to her recommended companies. Is this agent worth my time. I'm already approved for an amount I can afford. Are all agents like this, when your buying a home? Are we not suppose to get our own mortgage before calling agents? Thanks
It's common for realtors to try to convince you to use their lenders/appraisers/inspectors. Use who YOU want to use. My realtor kept telling me about her people even though I told her I would do all the legwork myself.
It's common for realtors to try to convince you to use their lenders/appraisers/inspectors. Use who YOU want to use. My realtor kept telling me about her people even though I told her I would do all the legwork myself.
This, it doesn't hurt to shop around, but I work with VU regularly and they do a great job usually. If you need an agent, VU can set you up with one of theirs.
You can use who you want to use, but agents recommend known local lenders we've worked with before, because we know people who will get the job done competently and on time. Unfortunately, we have worked with plenty who don't do a good job.
Most of us have had bad luck with big national companies with out of state loan officers and complicated phone trees. You can't get through to anyone and if you do it's voice mail. I have my go-to lender's cell phone number. I can get ahold of him any time and he answers.
That makes all the difference when we are out looking at homes on a Sunday and need an approval letter, NOW.
It makes all the difference when we are on a tight timeline and we can't tell where the loan is the approval process.
The lender is a vital part of the process. It's smart to pick one who is local, who all the other people in the transaction (agents, title company, etc) also know and respect. It makes it so much easier to work through any issues that do pop up.
Last edited by Diana Holbrook; 08-27-2019 at 12:08 PM..
Reason: clarity
You can use who you want to use, but agents recommend known local lenders we've worked with before, because we know people who will get the job done competently and on time. Unfortunately, we have worked with plenty who don't do a good job.
Most of us have had bad luck with big national companies with out of state loan officers and complicated phone trees. You can't get through to anyone and if you do it's voice mail. I have my go-to lender's cell phone number. I can get ahold of him any time and he answers.
That makes all the difference when we are out looking at homes on a Sunday and need an approval letter, NOW.
It makes all the difference when we are on a tight timeline and we can't tell where the loan is the approval process.
The lender is a vital part of the process. It's smart to pick one who is local, who all the other people in the transaction (agents, title company, etc) also know and respect. It makes it so much easier to work through any issues that do pop up.
This!
From time-to-time I do have a chat with my clients about who they've been pre-approved by. The reason behind it is that I want to make sure that my clients not only receive a competitive rate and closing costs but should also have a blender who will actually close the loan for them on time. Not all lenders are created equal. My market is also still VERY hot and putting in an offer with a pre-approval letter from a big national bank like Bank of America can sometimes be the difference between getting your offer accepted and the seller accepting someone else's offer.
You can use who you want to use, but agents recommend known local lenders we've worked with before, because we know people who will get the job done competently and on time. Unfortunately, we have worked with plenty who don't do a good job.
Most of us have had bad luck with big national companies with out of state loan officers and complicated phone trees. You can't get through to anyone and if you do it's voice mail. I have my go-to lender's cell phone number. I can get ahold of him any time and he answers.
That makes all the difference when we are out looking at homes on a Sunday and need an approval letter, NOW.
It makes all the difference when we are on a tight timeline and we can't tell where the loan is the approval process.
The lender is a vital part of the process. It's smart to pick one who is local, who all the other people in the transaction (agents, title company, etc) also know and respect. It makes it so much easier to work through any issues that do pop up.
This^^^^^^
I've had Quicken loans approve a VA loan for a client, using income for both husband and wife but debts only for husband. (He wanted loan in his name only. ). When you do a VA loan and you are married, you have to use both spouses debt to qualify debt to income. Quicken did not do it correctly and it would have resulted in loan falling apart, if i hadnt asked them to use a local lender that I trust for preapproval. They did not qualify due to debt to income.
There are often closing delays with the big lenders. I had a buyer of a home i owned, that had 800+ credit scored, had a business that banked with Bank of America, putting 60% dn, and they were almost 2 mo late closing. It took numerous calls to the processors boss to finally get it closed. They kept losing paperwork, misspelling names, etc.
I also had a military dr that wanted to go thru his own bank because he said they had a great rate. Gave me preapproval, then 2 weeks before closing they told him they couldnt do loan because they couldnt count the income he gets for moonlighting at civilian hospitals. I switched him to lender i use and they got it done and closed 2 days late.
So asking someone to get preapproved with a trusted lender is a normal thing. It prevents problems later on. Get preapproved with the other lender, and if you want to use your lender, do so. But at least if it tanks, there is a backup.
I've had Quicken loans approve a VA loan for a client, using income for both husband and wife but debts only for husband. (He wanted loan in his name only. ). When you do a VA loan and you are married, you have to use both spouses debt to qualify debt to income. Quicken did not do it correctly and it would have resulted in loan falling apart, if i hadnt asked them to use a local lender that I trust for preapproval. They did not qualify due to debt to income.
There are often closing delays with the big lenders. I had a buyer of a home i owned, that had 800+ credit scored, had a business that banked with Bank of America, putting 60% dn, and they were almost 2 mo late closing. It took numerous calls to the processors boss to finally get it closed. They kept losing paperwork, misspelling names, etc.
I also had a military dr that wanted to go thru his own bank because he said they had a great rate. Gave me preapproval, then 2 weeks before closing they told him they couldnt do loan because they couldnt count the income he gets for moonlighting at civilian hospitals. I switched him to lender i use and they got it done and closed 2 days late.
So asking someone to get preapproved with a trusted lender is a normal thing. It prevents problems later on. Get preapproved with the other lender, and if you want to use your lender, do so. But at least if it tanks, there is a backup.
Amen.
It is up to an agent to advise.....but a client decides. I always advise clients to speak with a local lender. Most of the time they take said advice and shop around; sometimes the recommended local lender is the one they choose; sometimes it's not...but it's still their choice.
I also have had more than one occasion where "big bank" was botching the transaction and buyer was getting fedup....and local lender I had originally recommended was able to come in and save the deal.
Too many agents try to force clients to do things because they think they know better. Even when the agent does know better; they should advise and/or be a resource...not coerce and/or be a decision maker.
I'd rather bail out my buyers before some amateur degenerate boogers them up, before they are in a transaction with money across the table.
Fixing their mess later is more stressful all around, and might even cost them serious money lost in a botched deal.
I recommend lenders who show up with the money when they are supposed to and who engage with the client throughout.
And, they know, if they need regular second chances, I know other lenders who don't.
It is really that simple.
we might also point out that it's illegal for lenders to pay us anything for referring business to them. Same with inspectors, attorneys, and every other service provider that I know of.
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