TRUST IS BUILT FACE TO FACE—THE ONLY WAY!

Probably the most critical element in choosing a real estate agent should be trust. Do you at a gut level, trust an agent to not only work in your best interest but to give you good sound advice about the homes you are looking at? If you need to finance the property, which 86% of people do, then it is equally important that you trust the Loan Originator, the person who guides you through the mortgage process, also. If you are buying an average home today, you will spend just over $200,000 to buy it. But the loan will cost you about $600,000, in total, over 30 years. If you are going to spend that kind of money on anything, it is important that you meet face to face with the person responsible for directing initialization of that loan. It is the only way that you have a chance of knowing that they are working in your best interest. It is also, the only way that you can hope to understand the implications of the responsibility you are taking on. If you don’t trust the LO, walk away from that loan. But when you have already made a home purchase and the clock is ticking on the closing, that is often unrealistic. That is why I recommend that a buyer gets preapproved for the mortgage early in the process, before they choose the home they want to buy. It is ok to comparison shop, even advisable, but be careful about advertising that says “no closing costs” or “guaranteed lowest rate” as they can be very misleading and build in costs, in a variety of ways, that you are not even aware of. Choose a local lender who is willing to meet with you up front and fully explain the mortgage product that you are paying so much for. A big red flag for me is when a buyer comes to me to purchase a home and they say they have been preapproved by an online lender they have never met. This is almost a sure fire way to have a disaster down the road. If your agent is a full time, knowledgeable real estate practitioner and you really trust them, they can be a great resource for choosing a lender. Unlike the average consumer, who only is involved in one real estate transaction every 7 or 8 years, your real estate agent is probably involved in 20 to 50 transactions per year. Therefore they come to know which mortgage companies and loan originators can be trusted and which cannot. On my website, www.mnhomesbydave.com, under the Real Estate News tab,  I have included an article from Inman News, a real estate newsletter, which describes well the reasons for this approach. Choose your real estate agent and your lender with great care because a home is probably the largest investment you have ever made. Thanks for reading.

David Feerhusen

David Feerhusen

Broker/Realtor, CDPE, GRI, CRB
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