On top of that, the agent works on a commission. If the deal doesn't close, they get nothing. Real estate agents want the peace of mind knowing a preapproval letter from a trusted lender means everything will go smoothly and they won't miss a sale due to uncertainty from the lender.
What is the role of a lender in real estate deals?
The role of a mortgage lender is to lend money for buying property. A lender can be a bank, credit union, mortgage broker, private individual, etc. Think of a lender like the money people, the cha-ching.
What is the difference between lender and realtor?
Two of the most important allies a homebuyer can have are a real estate agent, to help you find the right property, and a lender, to help you finance the purchase.
What is the disadvantage of working with a mortgage broker?
Many home buyers simply assume that a broker can deliver a better deal than they could get on their own, but this is not always the case. Some lenders may offer home buyers the very same terms and rates that they offer mortgage brokers (sometimes, even better).
Do I still need to shop around if my real estate agent recommended the lender she usually works with?
Yes, you can still choose your own lender even if you are working with a realtor. While realtors may have preferred lenders that they recommend, you are not obligated to use them. As a homebuyer, you have the right to shop around for lenders and select the one that best suits your needs.