Mortgage Info for Homes and Small Business Financing

Category Archives: Agency and Representation

Apply for a mortgage at a bank – you will not be represented

Purchasing a home will probably be the single largest financial transaction of your adult life.

Timing is a huge consideration.  Getting all your ducks in a row is crucial.ducks in row | organization

Finding a Realtor who guides you through the process of finding the property and then completing the paperwork, negotiating your offer and removing all the contingencies is another.

Finally, you must consider how you will finance your new purchase.

Only gets more complicated when you add a mortgage to the mix.

Thankfully, the real estate industry recognized that unrepresented buyers were a potential liability for everyone involved.  You see, not too long ago all agents including buying agents were subagents of the listing agent.  All agents were agents of the seller.  This is important, as the agent working with the buyer would actually owe their fiduciary duty to the seller, not the buyer to whom they showed the listing.  Too often the buyer thought the agent was working for their interests.

It was confusing to say the least for buyers and subagents, too.  It seemed like they were working for the buyer but they were legally restrained from doing so.  If you told the agent that was assisting you what your top dollar would be they were obligated to report this to the seller.

The situation has now been corrected with the advent of buyer agency.  You can contract for direct representation or choose to go it alone.  Either way, it’s your choice as a consumer.  As a consumer, choices are good.

Are you represented when you apply for your mortgage?

If you go direct to a lender for your mortgage, let’s say a large bank, you are not represented.

You will be be dealing with an agent of the lending institution, more than likely a salaried individual who has nothing to gain by obtaining what you desire.  They are working for the benefit of their employer, not for the benefit of you, the borrower.

You have to ask yourself, do you want to be unrepresented?  Do you want to negotiate directly with a lender?  Or would you prefer someone to act as your intermediary, someone who will advise you regarding the latest intricacies of the lending game?

Mortgage brokers seek out the best mortgage for your particular situation, licensed professionals who are required to disclose everything to you.

Once again, the choice is there for you, the consumer to make.

Choose wisely.

 

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Time for Borrower Representation through Agency Has Arrived

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