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Friend or Foe?

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

We have all had times when we wondered which side of the equation is the lender.  I have lenders that I work with on a regular basis.  I send them clients because I know they are going to work in the best interest of the client.  Sometimes clients already have lenders that they have history with, which is fine with me.  I always prefer the buyer have their financing in order before they discuss a purchase with me.  If they do not I always ask if they have used someone in the past.  I get a variety of answers.  If they do not seem to be very committed to anyone I recommend two for them to choose from.  I emphasize that I do not get any income from their financing so the choice is theirs and this is a service I provide clients that have not established a lender.  I know I could maintain my brokerage license for mortgages and earn extra income but I have done that and find for me the extra income is not worth the distraction from my normal business.

I have found that the lenders that I do not deal with on a regular basis are not responsive to any of my questions even when I have a buyer release letter.  They do not seem to answer time frame questions to set closing dates, getting paperwork to closing agents for HUD 1 statements are also a problem.  I stick with people I know.

I have lenders tell me they do not get the proper paperwork from the real estate agents either.  I can hardly imagine a more closely tied relationship than the agent and the lender for transaction completion.  Today I have made two call without response, yesterday I made another without response.  I have a closing on Friday that I am quite sure is in doubt.  The buyer is frustrated because he is no longer getting updates or status reports from the lender "he" selected.  The process is so smooth when you have the right lender and the right agent.  Have either wrong and it is "all" wrong!  My client is very happy with me....I have my usual lenders in the wing and we just sent the buyer to one of them for a loan application to make sure, should this go south for some reason, the buyer is still covered and able to complete his purchase.

Buyers and sellers have to choose their lenders and Real Estate Agents with great care.  None of us are the same even though we may have the same title, license and professions.

Comments (4)

Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

Got that right.

May 30, 2007 04:06 AM
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy
I like working with local lenders, it is hard when clients have out of town lenders they want to use
May 30, 2007 04:08 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Gene, the issue is a subject that just got me again in the last two days....not happy in paradise but...the buyer understands issues.  Thanks for the comment.

May 30, 2007 04:11 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hey Michael, people wonder why we stick with lenders that communicate.  The fact is that is all we have to rely on is the communication process.  Thanks for the comment.

May 30, 2007 04:14 AM