Across the U.S., with demand being high and inventory being low, some housing markets are hotter than ever. This presents some challenges for buyers, specifically when it comes to picking a mortgage lender. In a hot real estate market, mortgage lenders will actually compete for hombuyers’ business. While your clients have more options to choose from, you’ll want to ensure that they pick the right lender. Guide them through the process by using these tips for helping your clients choose a lender in a hot real estate market.
Help them seek out lenders with great reputations
If you haven’t already developed relationships with lenders you trust, ask your colleagues for recommendations to share with your clients. You can also research lenders at the Better Business Bureau. Ask around or read online reviews to make sure you’re recommending companies that consistently deliver on their promises.
Give them referrals
As a real estate agent, you can vouch for mortgage lenders with whom you have worked, specifically when it comes to their ability to meet deadlines. When you’re helping your clients choose a lender, give them a few referrals. And encourage them to ask friends and family to recommend lenders they use and trust.
Advise them to choose a lender that offers pre-approval and advanced underwriting
From the get-go, your clients will want to prove to the seller that they have the financial means to close the sale.
Remind them to ask lenders about turnaround times
Quick turnarounds are especially important in a hot real estate market. If the seller is in a hurry, a lender that closes a loan too slowly could cost them their dream home in a hot sellers’ market. When helping your clients choose a lender, encourage them to go with a company that can guarantee a reasonable processing time.
Encourage them to choose a lender that accepts pre-inspections
Pre-inspections are another important factor to consider in a hot real estate market. When you’re helping your clients choose a lender, explain the advantages of picking a company that accepts pre-inspections. Give them a referral or two if you can. That way they won’t be subject to an inspection contingency, which can push your offer to the bottom of the pile.
Encourage them to pick a lender that is fully accessible
When helping your clients choose a lender, stress the importance of good communication. Encourage them to select a lender with the capacity to communicate effectively with everyone involved. As the real estate agent, the lender should be able to communicate with you about the contract terms and anything else that comes up. Remind your clients that a strong relationship between agent and lender can quicken the closing process and make it less painful.
For more info, check out our new course on Navigating a Hot Sellers’ Market. This class is designed to help real estate agents close deals quickly and ethically in a hot real estate market.