Realtor vs. Lender – Friend or Foe? The answer…

Friend, of course.  The age-old debate: Can mortgage lenders and real estate agents work together for one client or are they competing for the title of "Who Served the Client Better"?

Well, it doesn't really matter because the most successful transactions happen when the real estate agent knows their business and the mortgage lender knows their business.  And guess what? - They let each other perform their own business without interference and communicate with each other on a high level.

With all the recent changes in underwriting guidelines it can be hard to find a lender that understands and complies with them all; we as lenders can't expect real estate agents to understand as well.  Their area of expertise is in real estate.  Knowing and understand the mortgage market right now shouldn't be their primary concern.  That would be like me thinking I know the best price to offer when buying a home in this market.  I just don't do it and I wouldn't do it.  So, why do some real estate agents feel they need to be involved in the process of a mortgage?  One thought is because they have some experience in this arena and believe they are helping out our mutual client. However, perhaps it is that they just don't trust the lender they are working with and are trying to ensure everything goes well.

This approach can cause extreme stress and pressure on both the mortgage lender and the client.  I have been fortunate the last 2 years to work with some really impressive Relocation Agents across the county.  And let me tell you, a relocation purchase is one of the most emotionally-charged transactions you will come across.  These agents are top-notch with their process, communicate at a high level and make themselves available. Best of all, they let the lender do the job they need to do, such as: providing an approval on time for the financing contingency, getting the final approval to close 3 days before the closing date, ensuring the HUD-1 is completed and sharing in the success that is created when the client gets the keys to their new home.

We all serve a mutual client and yes, realtors are our friends--not our foes. Expectations set at the beginning between the lender and agent always ensures the smoothest transaction and a happier, more satisfied client. More experiences like the ones I have encountered tell me that soon we will all be friends.