Regulations have been put into place to allow buyers to shop lenders prior to entering into a contractual obligation... Buyers rarely obtain more than 1 Good Faith Estimate, from 1 lender...
Can that be frustrating for the broker, and the lender? Absolutely... but in an industry so riddled with corruption as of late, it's time the power was placed back in the hands of the buyers.
In reality, sellers and listing agents frequently list properties at prices substantially above or below what the market actually supports.
Discount shopping typically occurs because homebuyers are unsure of the home's true value. The only concrete number they see is the list price and therefore assume anything less would be a bargain.
The best way for homebuyers to avoid this problem is to put more work into independently valuing the property without the influence of its list price. What have similar homes sold for in the area? What are current market trends? How well does this property fit with the characteristics the homebuyer is looking for in a home?
Best of Luck,
NOTICE: The materials on this website are provided for informational purposes only and do not constitute legal advice.
Senior Loan Officer
1ST Mariner Mortgage
Lending in all
Tony Taylor, DC Real Estate Guy