If you’re a real estate agent, then you know that one of the most important things you can do for your clients is to help them find the right lender. But with so many lenders out there, how do you know which ones to recommend? By creating a preferred lender list, of course! Here’s how to get started.
Research your preferred lenders thoroughly before choosing
Choosing preferred lenders for your real estate transactions is an important decision, and it pays to do your research. Before making a selection, consider input from co-workers and other agents to see if they have any recommendations. Another valuable source is friends and family members that have used a particular lender when purchasing their home. Once you’ve created a list of potential lenders, review their credentials and reputation.
Discuss available loan programs
Once you have found a few lender candidates, you should meet with them to discuss the various programs they have available for buyers. Knowing the different types of mortgages, options, and incentives they offer can help realtors provide more comprehensive advice and guidance to your buyers. Be sure to ask questions about the terms and conditions of any special incentives so that you can help guide buyers in selecting the best program for their needs. Meeting face-to-face with the lender also allows you to determine if they will be the right fit for your business and clients. It’s important to build relationships with lenders so you have first-hand knowledge before recommending them to your clients.
Make sure the lender can deliver
For real estate agents, verifying that the lenders can deliver on time for loan approval is essential. Misjudging the amount of processing and document collection needed, or an unexpected delay, can easily disrupt a real estate transaction and put a deal in jeopardy. Knowing a lender can meet all important dates related to the real estate purchase—from loan application to the final closing date—can help agents guarantee their clients get the best outcome. With these timetables correctly planned, professionals in real estate will have everything they need to represent their client’s interests and secure satisfactory transactions on time!
Inquire about pre-approval letter availability
Once you have identified several preferred lenders, it is important to inquire about the availability of pre-approval letters for your buyers. This document can be critical in helping others understand that your offer is serious and will likely move forward. Furthermore, offers may be viewed more favorably if sellers know that buyer interested in their property is qualified, leading to an improved chance of closing the deal. Be sure you ask about how quickly each lender can generate the letters and what steps are required for a buyer to obtain one.
Review the process after a few closings
After you’ve worked with a lender a few times, it is important to assess their performance. Lenders should be available to provide updates quickly and efficiently and communicate any potential problems. They must be attentive and respond to inquiries promptly. They must also be able to meet important deadlines regarding the appraisal, loan approval, and closing date. You should also consider how the lender reacts to unexpected problems. While last-minute issues are often unavoidable, a lender’s ability to quickly overcome them and stay on track will go a long way toward the success of your transactions. If your lender has dropped the ball a few times, it is time to meet with them to discuss expectations. If they are unable or unwilling to address any problems, it is time to find a replacement.
Finding qualified lenders that you can recommend can seem like a daunting task, but it doesn’t have to be. If you do your research and compare different lenders and the programs they offer, you’re sure to find the best lender for your needs. Continually assess their performance to address any issues as early as possible. Remember, your recommendations directly reflect on you.
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