This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

In-house Lenders Aren't Always Best

Homebuyers work closely with both a mortgage lender and a real estate agent to make sure they find the right house and get the proper financing. Realtors often develop relationships with lenders so they can recommend a professional who they trust to provide excellent financial service to their customers. Some real estate companies go a step further and develop an in-house lending program or an affiliation with a mortgage lender in order to generate more revenue and have greater control over the financing process.

There are both advantages and disadvantages to working with an in-house lender, so homebuyers should always compare offers from multiple lenders before committing to a lender or a loan.

Advantages of in-house lenders

Steve Adamo, president of Weichert Financial Services in Morris Plains, N.J., a division of Weichert Realtors, says that consumers prefer one-stop shopping for a home and a loan.

"We put local lenders in our real estate offices so they can have face-to-face meetings with buyers," says Adamo. "The big advantage to buyers is that the lender and the buyer and the Realtor are in constant, coordinated communication."

Adamo says that an in-house lender can give borrowers a clear road map to prepare them before they make an offer on a house and can consult with them throughout the buying process.

Suzanne Schakett, senior vice president of strategic alliances at Envoy Mortgage, a private lender in Houston, says that in-house lenders often have a formalized communication process to keep the buyer and Realtor informed on a daily or weekly basis regarding the status of the loan application. While all lenders are focused on getting a loan to settlement, the additional pressure of their relationship with the real estate brokerage can help move the transaction forward more quickly.

Disadvantages of in-house lenders

Whether in-house lenders actually process a loan faster is debatable.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs