In-house Loan Services

Many major real estate companies offer their own mortgage affiliate, however buyers should not feel pressured to use the in-house loan services.

• In-house loan services are not new, but they have become important since the market declined. When the lending environment started to become restrictive, the need to have a mortgage broker in house who could give preapprovals that actually worked became important to real estate brokers.

• Relationships between real estate brokers and in-home mortgage brokers can benefit buyers by providing access to the loan officer or mortgage broker. This may reduce processing time, and possibly fees.

• While using an in-house mortgage service may be beneficial and help increase the process, buyers have the right to select any lender they want. Federal law prohibits agents from steering clients to a particular mortgage company or lender, and from accepting payment for referrals.

• It’s important that borrowers do their homework, check all fees, and request the Good Faith Estimate, regardless of which lender they choose.