The seller is not working with the lender directly, so why do they care who I use? This is a great question that I get frequently while talking about strategy in multiple offer situations. Sometimes it isn’t on the listing agent or sellers radar who you are using, but there are instances where a savvier agent may let their sellers know that it does matter who your lender is, especially if the seller has more than one offer to choose from. Here are some of the main reasons a seller might care who your lender is:
- If the lender is local and has a great reputation in the community, this could provide more peace of mind for the seller(s) and their agent. Knowing that the lender is reputable, used by many buyers in the community (knowing their reputation is at stake, since they rely on local referrals and their reputation), and will follow-through with their part of the transaction, is huge. An offer submitted using a lender that might not have that added trust and track record, might be enough to set the offer using the local lender apart, just enough to be the preferred offer.
- If the lender has negative reviews, or is hard to reach and communicate with, this sets off a warning bell for the listing agent, which they will likely make their sellers aware of it. Listing agents should be calling lenders while reviewing multiple offers, to check on the buyers loan approval status, while also allowing them to get a sense of the lender’s communicativeness and professionalism.
- Do they get paid when the transaction closes, like we agents do? Many local mortgage brokers get paid on commission, not salary. While not always the case, I have noticed that lenders who focus only on home loans, and who are paid on commission, not salaries, tend to hustle harder for their clients and provide much better customer service.
- So how do you choose your lender? When talking to lenders and weighing who you will use, here are some questions to ask:
- Is the lender available on weekends and after traditional business hours to get you and your agent a pre-approval letter?
- Is the lender willing to call or email the listing agent after your agent submits an offer on your behalf? This is not required, but instills confidence in the seller and their agent, that the lender is easy to reach, is professional, and will work hard to keep their end of the transaction on track.
- Do you like and trust them? If you have three competent lenders going into your decision, go with who you like and trust. This person is going to be working closely with you and your personal financial information. It is important that you trust, and like them!
Check out my blog post about why a seller might care what type of loan you use, here