 |
Who To Trust |
| |
 |
Dear Edith: We've lived in our small house for 20 years. Recently, we came into a financial windfall and are in a position to buy something larger. We are puzzled over the best way to handle the purchase of the next home.
A local real estate agent told me they offer free financial counseling, my husband thinks this is a bad idea and may not have our best interest in mind. I suggested a bank financial consultant, my mother thinks this is a bad idea because the bank is only interested in loaning us as much money as possible. Another option would be to work with an independent financial consultant. Please help. We don't want to make a costly mistake. |
| |
| |
 |
You folks are so suspicious I don’t know if it’s any use making suggestions, but I do think you might have confidence in a mortgage broker.(Avoid ones who ask for upfront fees.) Mortgage brokers bring borrowers and lenders together, and they have access to many different lending institutions. Sometimes they’re paid by the borrower when a loan is secured, sometimes by the lender. No need to be wary of real estate brokers. Agents routinely analyze the finances of prospective buyers, to estimate how much they can comfortably spend. Otherwise they’re just wasting everyone’s time house-hunting. And if you specifically retain your own buyer’s broker, that agent is legally required to put your interests first, above anyone else’s.
As for banks: if you don’t go with a mortgage broker and don’t look for guidance from a real estate agent, you’ll need to contact lending institutions on your own. Talk with several and you can compare their offerings.
Many borrowers, these days, are exploring mortgages on the Internet. It sounds, though, as if your family will feel more secure dealing face to face, once you find someone you trust.
A financial advisor, simply for placing a mortgage, strikes me as unnecessary overkill. |
| |
|
Edith
Originally published on July 6, 2006 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
