The Lender Works For You.
August 29, 2008 | By Kelley Koehler | Filed Under First Time Buyer, Loans and Financing
I met with a nice woman today, a long-term reader of the blog, looking to buy her first home. With my first time home buyers, I find that if I can help them be more comfortable with the whole money and lending aspect of a home purchase, then the rest of the transaction is so much easier because the money is what tends to make people most anxious.
I don’t know how many times I’ve said it, but I’ll say it again and again until the world sings it with me:
The lender works for you.
When you go and talk to different lenders, they are interviewing for a job. You will be paying them to help you get a loan. And while in Arizona, your lender does not have fiduciary duties towards you, they should still be dealing with you honestly and ethically.
Therefore, since you are paying for this service, since you are hiring this person to help you:
- You have every right to demand the type of service you prefer, and
- You have every right to know exactly how much you’re paying, and what you’re getting in return.
So pick carefully. I’m happy to provide recommendations.
And have a happy Labor Day!
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Re: “your lender does not have fiduciary duties towards you, they should still be dealing with you honestly and ethically.”
Amen to that!
[...] Sit down in front of your loan officer and ask a billion questions. Ask as many questions as you need to ask in order to understand your loan options, and the pros and cons of each choice you make regarding your financing. And if your loan officer won’t do that, find another one. When it comes to financing your home purchase, the responsibility is yours to understand what you’re getting yourself into. [...]