What does a lender do?

In a real estate 🏡 transaction 💰 a lender plays a crucial role in helping buyers secure financing to purchase a property. The lender’s main responsibility is to provide a loan to the buyer so they can purchase the property. Here’s a summary of what a lender does:

1️⃣ Assess the buyer’s financial situation: The lender will evaluate the buyer’s credit history, income, debts, and other financial information to determine their ability to repay the loan.

2️⃣ Pre-approve the buyer for a loan: Based on the information provided by the buyer, the lender will pre-approve the buyer for a specific loan amount. This pre-approval is a key factor in helping the buyer determine their budget and can increase the buyer’s negotiating power.

3️⃣ Review the property: The lender will review the property to ensure it meets their lending criteria and will also order an appraisal to determine the property’s market value.

4️⃣ Provide the loan: Once the lender is satisfied with the buyer’s financial situation and the property, they will provide the loan, which will be used to purchase the property.

5️⃣ Service the loan: The lender will manage the loan, including collecting payments and ensuring the loan is paid back on time.

In conclusion, the lender plays a critical role in the real estate transaction by providing the MONEY necessary for the buyer to purchase the property and managing the loan to ensure it is repaid on time.

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