Why Your Realtor Needs to Talk to your Lender

If you look like the guy in this picture when your Realtor asks you for the contact information for your #Mortgage #Lender, you wouldn't be alone.

Many people don't understand that their Realtor needs to talk to their lender.  Here are many of the reasons why:

• Offers must come with a pre-qualification, or they will not be answered.  Put yourself in the Seller's shoes: If you have one offer with a pre-qualification from a lender, and another offer without any assurances of being able to have funds to buy your house, which will you choose?
• Realtors must know the type of loan that you will be getting.  Sellers can refuse to accept offers with a particular type of loan.  For example, if a Seller knows that a house will not pass an FHA appraisal, they can say that they will only accept Cash or Conventional loans.  This is not discrimination, it is a business decision made by the Seller.  Why look at homes that you are excluded from buying?
• If you have a very low down payment because you have a small cash reserve, the Realtor and Lender can often come up with a plan to help you get a particular home.  By coming up with a mix of Lender paid, Seller Paid and Realtor Paid closing costs, they can come up with a winning offer at no cost to you!
• If you are planning a huge down payment, a discussion between the Realtor and Lender can often save you cash out of pocket to use for things for the home, or just to keep for a rainy day.
• A Lender can give a Realtor tips that will help the Realtor save you money.  For example, it may be that if you have a 7 week escrow instead of a 4 week escrow, you can save another 1/8th of a point in interest due to a credit score change or a DTI change!
• Lenders will have suggestions as to how to implement a transaction to be able to take best advantage of your financial situation, especially if you need to be near your maximum borrowing power.  They can tell your Realtor what the maximum taxes and HOA fees can be for your situation.
• The biggest reason that a Realtor needs to speak with you Lender, is to be sure that you are seeing homes in the right price range.  There is no bigger heartbreak than to look for weeks and get your hopes set on a house, only to discover that you cannot make an offer because it is out of your price range.  The flip side to that is to discover that you are looking far below your price range, and that you could have easily have had that home with the pool and the 3 car garage.  Why spend time, use up the energy and live through the emotional turmoil of buying a new home, only to find that you should be in a different neighborhood?

#Avondale , #Goodyear , #Buckeye , #Glendale,  #Phoenix, #Surprise, #Peoria, #Tolleson, #Laveen, #Waddell , #Wittman