This is the second post in a blog series on online home loans. You can read Part 1 here. In this article, we’ll discuss how sellers and listing agents often regard online lenders.
Online Home Loans – Does it Matter if a Seller and Listing Agent Don’t Like Your Lender?
You might think that your choice of lender shouldn’t matter at all to the seller or listing agent, and if it does, who cares? That mindset might be fine in buyer’s market, where sellers are desperate for a good offer from a buyer. However, when multiple offers come in, and sellers and listing agents have the luxury of scrutinizing every part of every offer, including the buyer’s choice of lender, this most definitely matters.
The fact is that many listing agents have watched their sellers go through horrible experiences when they accepted contracts from buyers who used online home loans. A good listing agent understands that a buyer’s choice of lender can often make or break not only the buyer’s ability to meet their loan deadlines in the contract, but also whether or not a buyer will have their loan approved.
If a buyer’s loan is rejected, the buyer’s responsibilities under the contract are void, and they walk away from the sale basically unscathed. The buyer might be disappointed, but they aren’t harmed financially. The seller, on the other hand, has to put their home back on the market, and homes that have fallen out of contract can often be viewed as “tainted goods” by future buyers, which could affect the seller’s ability to sell their home for top dollar to another buyer.
In Part 3 of my blog series on online home loans, we’ll finish our discussion of how sellers and listing agents often perceive online lenders.
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