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- Michael Emery, "MikeEmery"
- Contributions:7286
Just how the heck do folks find these Zombie threads?
This question was posted six months ago and wasn't attached to any specific city and/or state.
Maybe it's just me, but my eyes glaze over after maybe viewing five or six pages of what was posted TODAY.
This question was posted six months ago and wasn't attached to any specific city and/or state.
Maybe it's just me, but my eyes glaze over after maybe viewing five or six pages of what was posted TODAY.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
"......and you know, the kids, like all kids, love the snarky and I just want to say this right now, that regardless of what they say about it, we're gonna keep it."
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
You know, norm, I really don't think that Ms.Arnell's post warranted what I thought was a particularly snarky response, especially since this is apparently her first experience on Zillow's Q&A.
On the other hand, resurrecting an old thread that already has over 140 posts may deserve just a bit of snarkiness.
Sorry Jeannene.
On the other hand, resurrecting an old thread that already has over 140 posts may deserve just a bit of snarkiness.
Sorry Jeannene.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
so what you're saying Jarnell is that most agents feel their buyers are morons incapable of deciding how best to spend their money in buying a home..
Great business plan there.
Great business plan there.
- Jeannene Arnell, "Jarnell"
- Contributions:1
Real estate agents success depends on working with a competent team, including a mortgage lender and title company, success means the buyer has a great homebuying experience. That's why they like to refer competent professionals they know will get the job done right, on time, and without buyer's remorse. After all, at the end of the day all we really have is our reputation and good name.
- AgentMarketing1
- Contributions:40
tepelena,
With all due respect... just because you want to buy a home does not mean you are finance-able given current underwriting guidelines.
My guess is that the reason Agents you've conferred with are suggesting Loan Officers they are familiar with, is that they have confidence that the Lenders Pre-Approval will be accurate... & not some "best guess" made by a lender who is inexperienced with current underwriting guidelines.
Real Estate Agents invest a lot of time, effort and financial resources in every client and as such, they want to make sure clients are finance-able for the homes they're viewing.
Any Agent who has developed confident relationships with Lenders who are well versed with current underwriting guidelines ... IMHO... is one you may want consider listening to.
... ask yourself... do you REALLY want to look at homes if your unable to be approved for the financing to purchase one??
Just my 2 cents...
With all due respect... just because you want to buy a home does not mean you are finance-able given current underwriting guidelines.
My guess is that the reason Agents you've conferred with are suggesting Loan Officers they are familiar with, is that they have confidence that the Lenders Pre-Approval will be accurate... & not some "best guess" made by a lender who is inexperienced with current underwriting guidelines.
Real Estate Agents invest a lot of time, effort and financial resources in every client and as such, they want to make sure clients are finance-able for the homes they're viewing.
Any Agent who has developed confident relationships with Lenders who are well versed with current underwriting guidelines ... IMHO... is one you may want consider listening to.
... ask yourself... do you REALLY want to look at homes if your unable to be approved for the financing to purchase one??
Just my 2 cents...
- Rose Martinez, "Maya12"
- Contributions:10
No it is illegal to receive a referral fee from the lender or anyone else for that matter. I have 3 preferred lenders that I sugget to my clients, however, if my client wants to work with their bank/lender that is totally up to them. The reason I prefer that my clients call one of my preferred lenders is to better serve my clients needs. The preferred lenders know what I expect from them to better serve my clients. My preferred lenders to not include junk fees, they know what I need from them to write up an offer, they know not to order the appraisal until after the option period, they immediately call me if there is a documentation my client(s) have not turned in, they send me my clients worksheet and pre-approval letter upon loan app. etc.there are usually no surprises at closing. Working with a different lender, they sometimes get very offended when I question their fee's and thus not a smooth transaction, they collect the appraisal fee and order the appraisal when in fact we don't know if the client will go forward with the home. It's a team effort to better serve your needs. That's all, we want a smooth transaction for you! Remember, it might be one of your biggest investment and your Realtor I'm sure is looking out in your best interest. Good Luck with your home purchase!
- Zoraida "Zoe" Ballew, "zoe.realtor"
- Contributions:5
Tepelena,
The answer is no, Real Estate agents don't get a commission or referrals from their prefered lenders. As a matter of fact, it is against the law for agents to get a comission or referral from the lender. The main reason for an agent to sugest a lender is because there are so many unscrupulous lenders out there who are trying to rip off the buyers that we prefer to work with the ones we know are honest.
It is wrong, though, that agents are pushing you to choose a lender. I would say this: if you have a lender AND you know him/her go with him.
Good luck
Zoraida "Zoe" Ballew
- atolius
- Contributions:5
if rate/fee you are quoted more or less same between lenders GO with the lender suggested by the agent. as few others mentioned simple reason here is agent knows lender can get the job done in a timely fashion. I'm saying this based on my experience. in fact i am in the process of closing escrow for a new house. after i negotiated and settled on sale price agent asked me to work with one of lenders they are familiar with. i received quotes from agent's preferred lenders as well as other lenders i located online. one of the online lenders gave the best quote which agent's preferred lenders could not match. with better interest rate agent didnt have a choice but allow me to work with outside lender. once i started working with outside lender everything went down hill. outside lender couldnt lock my rate for three weeks excusing lack of documents from title, had very poor communication with title company and agent. in summary process is delayed and to top it of i did not get the rate i was initially quoted since rates hiked up between the time i was quoted and lender was able to lock in. if i am doing this again i would be seriously considering one of the preferred lenders or someone i have worked with in the past.
good luck
good luck
- Andrew Adams, "203K Specialist"
- Contributions:9349
Klarek...I could pay $100 bucks for a glass of lemonade! Just because I could doesn;t mean I will! Some lenders take that privacy thing pretty serious!
I won't provide a letter to a realtor saying a client can afford this amount! Even if the realtor referred the client. I provide pre-approvals based on the offer amounts the consumer tells me too and update those approvals if they decide to increase their offer.
I thought I was a glass is half empty guy...you make me look like an optimist!
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
139 responses to this simple question. What else can any other genius add that hasn't already been mentioned?
Happy funding,
Rudi
Happy funding,
Rudi
- snipercam
- Contributions:20
If a buyer has their own lender that they feel comfortable with, great. Sometimes there are lenders we would rather the buyer NOT work with because of numerous slow/not closing, lack of communication, etc. Agents go through the closing process X number of times a year and see how certain lenders operate, whereas the buyer may be closing one loan every five years and may not know a lender's background. But the agent shouldn't be pushy about his/her recommendation....
- klarek the realist
- Contributions:7044
Schizlor is correct, this has absolutely nothing to do with helping the client and EVERYTHING to do with helping the agent. One of the biggest advantages for an agent when you do this is that they now have a friend who knows your exact financial situation. So for instance, if you don't want to spend more than $300k and they want you to offer $320k so the seller immediately accepts (thus making the agent's job quick and effortless), they just have to ping the lender and figure out how much wiggle room you really have.
And before an agent or lender chimes in with a "they're not allowed to do that" retort, you know darn well that agents break these rules on a daily basis. Nothing prevents them from doing it, and nothing enforces the system to see to it they're caught or even disincentivized from doing it. It's plain rotten.
And before an agent or lender chimes in with a "they're not allowed to do that" retort, you know darn well that agents break these rules on a daily basis. Nothing prevents them from doing it, and nothing enforces the system to see to it they're caught or even disincentivized from doing it. It's plain rotten.
- Jeffrey Ragan, "Home Buying Help"
- Contributions:25
Hello,
Agents many times have certain loan officers they really like to work with. The reason is simple, they know that lender rep can get the job done and fast.
No body earns a commission until the deal closes. So whatever you do, always be sure you understand the mortgage process itself. Once you have a good working knowledge of how that get the mortgage, then you can ask the important questions and know if you are getting a good deal or not.
Shopping for a mortgage is just as important as looking for a car of any other major purchase you're about to make.
Do your home work first, then decide. Always remember, you are the customer, they work for you. Make them earn their money.
Thanks,
Jeff Ragan
Agents many times have certain loan officers they really like to work with. The reason is simple, they know that lender rep can get the job done and fast.
No body earns a commission until the deal closes. So whatever you do, always be sure you understand the mortgage process itself. Once you have a good working knowledge of how that get the mortgage, then you can ask the important questions and know if you are getting a good deal or not.
Shopping for a mortgage is just as important as looking for a car of any other major purchase you're about to make.
Do your home work first, then decide. Always remember, you are the customer, they work for you. Make them earn their money.
Thanks,
Jeff Ragan
- Schizlor
- Contributions:45
The real reason?
They know people over there and have all their numbers in their cell phones already. They can call and harrass the processors or underwriters, or even "lean" on the branch managers if they are a heavy-hitter, to get their files through underwriting faster.
It has nothing to do with trust, or "feeling comfortable", or "know I can count on" or any of that BS. It's simply because the process will go smoother for them if you don't use someone they are unfamiliar with. They are trying to reduce the amount of time it takes to close your loan, so they can move on to the next commission. And there is a fair bit of "rule bending" that is permitted under long-standing relationships between agents and lenders. (things like being connected directly to an underwriter, which is strictly prohibited)
So they either a) don't want to do any more work than they have to, or b) know they can push an advantage with a certain company, and want to play that angle. It has nothing to do with doing right by you, so if they are pushy about it or make it seem in ANY way like an condition of working with them on the sale, tell them to go to hell.
They know people over there and have all their numbers in their cell phones already. They can call and harrass the processors or underwriters, or even "lean" on the branch managers if they are a heavy-hitter, to get their files through underwriting faster.
It has nothing to do with trust, or "feeling comfortable", or "know I can count on" or any of that BS. It's simply because the process will go smoother for them if you don't use someone they are unfamiliar with. They are trying to reduce the amount of time it takes to close your loan, so they can move on to the next commission. And there is a fair bit of "rule bending" that is permitted under long-standing relationships between agents and lenders. (things like being connected directly to an underwriter, which is strictly prohibited)
So they either a) don't want to do any more work than they have to, or b) know they can push an advantage with a certain company, and want to play that angle. It has nothing to do with doing right by you, so if they are pushy about it or make it seem in ANY way like an condition of working with them on the sale, tell them to go to hell.
- Frank Shaw, "Under640FicoScoreLns"
- Contributions:79
Are you in escrow yet? Have credit issues, low fico, not enough funds for down payment or closing cost? The time is now as the home prices are at rock bottom if not very near and the rates are very low. Get er done or we will be going on and on, lol. .
- Peggy Ulmer, "soldonpeggy"
- Contributions:16
I've referred more than one bank so the client can choose. Typically, I've worked with the people I've referred and find them knowledgeable and they keep in contact with the process of the transaction from accepted offer to closing. Our agents do not get any kick back or commission what so ever. When you're in this industry, you get to know how some of them work and you can tell who knows what their doing and who doesn't so we're trying to send you to someone who we think will help you.
- sunnyview
- Contributions:25127
"Me personally, refer them to our mortgage partner as I know they will get very good service from them."
What is a mortgage partner to you? In my area, a mortgage "partner" is a company connected financially to the real estate brokerage often sharing the same building. In that situation, the buyers financial information is free game to use for manipulation, exchange of information in terms of the maximum you can afford and it puts the client in the position of not having no chance at an independent voice to advise them beyond the goals of the partner businesses.
I have no problem having an agent recommend several lenders, but I want to make sure that lender is working for me and not my agent. I also want to keep my financial information private. My maximum qualification amount is not my agent's business. They should only be concerned whether I qualify, whether the lender is reputable and how much I want to spend on a home.
What is a mortgage partner to you? In my area, a mortgage "partner" is a company connected financially to the real estate brokerage often sharing the same building. In that situation, the buyers financial information is free game to use for manipulation, exchange of information in terms of the maximum you can afford and it puts the client in the position of not having no chance at an independent voice to advise them beyond the goals of the partner businesses.
I have no problem having an agent recommend several lenders, but I want to make sure that lender is working for me and not my agent. I also want to keep my financial information private. My maximum qualification amount is not my agent's business. They should only be concerned whether I qualify, whether the lender is reputable and how much I want to spend on a home.
- Kris Covert, "NW Mortgage Guru"
- Contributions:35
My advice at the end of the day, the mortgage is the financial part of the equation, it determines what size, type, etc of a house you can comfortably fit into your budget and has the most moving parts for qualification and closing. Try doing it backwards, call mortgage professionals and shop for the best rate for your specific qualifications since this is what your payment will be based on (type of program, interest rate, loan amount, etc)
In most cases the realtor is referring you to a specific agent due to trust, but it limits your ability to look at various options on the financial side.
If you have any other specific questions feel free to visit my profile and send me an email.
Good luck
In most cases the realtor is referring you to a specific agent due to trust, but it limits your ability to look at various options on the financial side.
If you have any other specific questions feel free to visit my profile and send me an email.
Good luck
- Home Experts Realty, "Home Experts Realty"
- Contributions:127
We NEVER insist that one of our clients use a specific lender. Our agents are trained to offer assistance for helping a client choose a lender and most have long business relationships already in place with specific ones and the agent might suggest they use a lender they are most comfortable with. Me personally, refer them to our mortgage partner as I know they will get very good service from them. I've had some clients who used their own lender only to encounter numerous delays and problems. A lender that has an established relationship with a Realtor is more likely to provide better and more prompt service when said Realtor sends them a referral. (they want to continue receiving referrals from said agent) It's similar to when I take my car to the repair shop. I almost always use the same shop so that I know I'll continue receiving prompt and good service. etc. Hope this helps!
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
works both ways there Jim. Nothing worse than your borrower working with an agent that's a moron.
- James (Jim) Gardner, "www.jimgardner.biz"
- Contributions:2
There can be many reasons for this but, I think the one that probably stands out the most is trust. Being in the Mortgage business myself for the last 22 years, I find that all of my referral sources say that there are a lot of Loan Officers out there that don't know what they are doing, or very sloppy through the process. Once a Real Estate agent finds a lender that they can trust. They know that their Loan Officer is going to protect you and them through the process all the way through closing. Not all Lenders are created the same. I personally believe that the Realtors are very smart about not wanting a client to fall in the hands of an inexperienced Loan Officer. Losing a sale and their Commission by letting their customers get involved with the wrong Lender is a battle that most seasoned Realtors are willing to fight. None of the seasoned professionals that I have worked with ever ask for money. That would be illegal! They only expect that I will be diligent in trying to help our mutual client to have a smooth transaction that will not only earn them a closing commission but, more importantly referrals in the future for a job well done.
- Alyssa Hellman, "AgentAlyssa"
- Contributions:6
I should clarify. No, lenders do not dictate what you can afford, but without qualifying for a loan that helps you purchase your home, you likely cannot buy it. My warning was simply that although an agent is likely recommending a lender they work well with, at the end of the day, this is YOUR transaction, so you need to be sure that you are comfortable with your lender, your agent, and your decision.
The key to any transaction is strong communication amongst all parties involved - buyer's agent, seller's agent, lender, settlement attorney, inspectors, etc. My point is simply that lenders that agents prefer tend to be the ones that the agent has experience working with and knows they can communicate with openly. This is always an advantage to you.
The key to any transaction is strong communication amongst all parties involved - buyer's agent, seller's agent, lender, settlement attorney, inspectors, etc. My point is simply that lenders that agents prefer tend to be the ones that the agent has experience working with and knows they can communicate with openly. This is always an advantage to you.
- Frank Shaw, "Under640FicoScoreLns"
- Contributions:79
Lenders give you the amount up to what you can qualify for and the borrower chooses a mortgage below or up to the pre-approved loan amount. I have had buyers think that they can qualify for a mortgage even a little higher because the homes in their price range weren't what they wanted and then went over the pre-approved amount and were declined in the end and had to start all over within the pre-approved amount. It is important to stay within the pre-approval amount given by the lender. The DTI can be stretched above 45% depending on fico score and DU approval requirements as I have closed DTI's well over 50% with DU approvals...
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
Lenders don't dictate what kind of house you can afford. It was that thinking by borrowers and their agents that helped get things where there are now.
Lenders can only provide loan terms in which a buyer may qualify. What a buyer can afford is solely up to the buyer.
Lenders can only provide loan terms in which a buyer may qualify. What a buyer can afford is solely up to the buyer.
- Alyssa Hellman, "AgentAlyssa"
- Contributions:6
This isn't necessarily a bad thing. Agents don't get any sort of kickback or referral fee for recommending lenders. Lenders and agents are required to work very closely throughout a transaction so many agents simply have a lender that they are comfortable with and mesh well in terms of working style.
That said, your agent should be okay with whatever your decision is. The lender is going to really be who dictates what type of house you can afford, so it is important that you are comfortable. That said, it is always helpful if the lender and the agent work well together!
That said, your agent should be okay with whatever your decision is. The lender is going to really be who dictates what type of house you can afford, so it is important that you are comfortable. That said, it is always helpful if the lender and the agent work well together!
- Flora.Li
- Contributions:21
The agent doesn't get commission for referrals. The possible reasons:
.the agent is familiar with the lender and the lender requires less paperwork
.the lender's rate is competitive and easy to submit(like Provident Funding)
.the agent knows which lender has good reputation on following senarios:
--borrower has a primary residence and want to purchase a primary home for parents using your income
--borrower need to use a rental income(doesn't have two years tax return) to qualify for a loan
--borrower's HOA has litigation
--borrower's DTI is above 45%
--borrower has low credit scores
--borrower is purchasing a flip property
Hope this help!
- Jonathan Davis, "Upfront Lending Inc."
- Contributions:41
Most of the time this happens because the agent is trying to work with someone who has proven they can/will get a favorable deal for their client. The law prohibits "kickbacks" so that's not the case for the majority.
- Frank Shaw, "Under640FicoScoreLns"
- Contributions:79
Again, it all depends if you have any credit issues or want to use special programs like city down payment programs, MCC certificates, county down payment programs, have a low mid fico score, want a low downpayment loan like CHF Access half percent down payment loan for CA, or many other possiblilities that they are refering to one lender. Many don't offer all programs and specialize and sell only a few. Many lenders require a minimum 620-640 fico and some require a minimum 500+ and is the reason I can offer most all programs because I look for the best loan to fit the client needs, whatever they may be...
Agents want me to use their lender.
What is the real reason that they all want to suggest a lender? Do agent's work with lenders and get a commission for referrals? Or is there any other reason.
Thanks.
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