Purchasing a new home is an exciting time in a person’s life! If it is your first or fifth time buying a home, you always need to know and remember your homeowners bill of rights. Let’s get started.
1. You have the right to choose your own lender.
Contrary to popular belief you have 100% control of what lender you choose to finance your home. Many time’s if you are buying a new construction home, they may WANT you to use the builders preferred lender, but you don’t HAVE to, especially if they are not giving you the best deal. You have the right to choose between a broker, real estate agent’s lender, credit union, big bank, whoever! The most important thing to take away from #1 is to ALWAYS SHOP YOUR MORTGAGE!
2. You have the right to get pre-approved with more than one lender.
Whoever pre approves you in the very beginning of the home buying process does not have to be the lender you ultimately end up with. The key to shopping your mortgage is to get you the best rate out there. Don’t feel obligated to stay with one lender just because they sent you your initial pre approval. You can get pre-approved by any qualified lending or mortgage institution.
3. You have the right to not feel bad about using your own lender.
Unfortunately, sometimes borrowers get pushed, bullied, or scared into using a specific lender. Obviously, whoever you are working with doesn’t want to lose your business so they will do whatever they can to make you stay. IT IS OKAY to shop your mortgage, talk with different lenders, and ultimately go with who you feel most comfortable with. YOU are in charge of your mortgage decisions, no one else.
4. You have the right to ask your realtor or builder about MSA’s.
An MSA is a marketing service agreement. It is a financial agreement between realtors or builders with a specific lending agency. In Lehman’s terms, they get paid to bring their clients to that lender. This also results in you paying higher rates and higher fees over the life of the loan AKA paying the realtor/builders commission.
5. You have the right to use ANY lender no matter their geographical location.
That’s right, if you are buying a home in Cincinnati, OH you can use a lender in Nashville, TN. Geographical location has no factor in you getting a mortgage loan! That’s why all digital processes, like ours makes things SO. EASY.
Lower interest rates and low margins with no lender or origination fees.