Many new construction builders offer incentives to the buyer IF they use the "preferred" lender partner. I'm sure these relationships are born out of trust, convenience and the marketing skills of the lender.
Buyers are often swayed by the promise of the "incentive" savings to make application with the preferred lender.
Unfortunately, the preferred lender may not be the right choice for every buyer.
Don't let the "closing cost incentive" stand in the way of getting your transaction to the closing table!
Not only are all lending institutions not created equal, not every loan officer is as "creative" as we need them to be.
Don't mistake the "creative" loan officer for one who skirts the truth or the loan guidelines.
Creative loan officers are those who understand the parameters of the available loan programs and can see MORE THAN ONE OPTION for a buyer.
They know that just because the buyer doe
sn't fit into the first box their job isn't over.
The creative loan officer will explore the differences and advantages of FHA vs. Conventional, higher down payments, one borrower vs. two and much, much more!
Here is an example:
Buyer A has excellent credit, good income, a large down payment of nearly half the purchase price of the new home and a fairly sizable mortgage on their current home. They want to purchase a new home BEFORE SELLING THEIR CURRENT HOME. That can be a difficult scenario.
The "preferred" lender plugs the buyer into the conventional financing box, doesn't like the debt to income ratio and denies the loan.
The RIGHT loan officer re-examines the scenario, sees that the buyer is capable of making a down payment large enough to fit into the FHA loan limits, the debt to income ratio is acceptable under FHA guidelines and issues the pre-approval.
Given the same information, we arrive at two different conclusions.
How many transactions have died on the desk of a loan officer who didn't take the time to explore all of the options?
Close more transactions by having a relationship with a great loan officer who is knowledgeable and will take the time to provide excellent service to your clients!
And don't forget to keep negotiating for that incentive! It's not uncommon to get the seller to come to the table, even when using the "outside" lender. After all, they want to sell a house!
Mortgage image courtesy of Stuart Miles at FreeDigitalPhotos.net
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