If you are buying a house, should you use a broker's one-stop-shop operation?

I certainly would advise against a one-stop shop. They may offer the best rates, but until you check around you won't know, and it is always better to use a neutral party.

I hate it when a buyer comes in with an internet loan approval or out of state lender.  Local lenders are always preferred....and not just by me, but by the listing agent as well.  A buyer's offer always tends to have more credibility when the listing agent is at least familiar with the lender.  I agree....one stop shops aren't always good.  Great post!

Well I can only speak from the perspective of using an in-house escrow company with 2 transactions with the same firm - NEVER AGAIN. I think the key is having an option and you would always worry about conflict of interest or lack of being neutral. Not something I would advise.

I agree with Jeff. I would worry about a conflict of interest, and who is really looking out for the consumer's best interest.

 I can see some advantage to having the agent and the mortgage lender working closely together. But think it should only happen if the buyer has been given the opportunity to talk to other lenders and compare their offerings.

Pat, you knew my office merged this year, from a single office to one that has all these services. I am getting to know our mortgage guy very well, and grill him on a regular basis. I think he is becoming fearful of me. I insisted on meeting the insurance rep as well, and put him under the gun too.

I have my list of proven people, both mortgage and insurance. :D

Good morning Pat,

Builders in our area offer incentives for using their lender and title company. They will pay more closing costs and definitely negotiate better prices. Most all of their lenders are good, competitive and have a big incentive to make the transaction work:). Our Title Insurance is set by the state so not much Titlw companies can do to manipulate the numbers and they too have an incentive to close a transaction!

Hi Pat, I always give a list of service providers. Since we are an attorney state, I include attorneys.

Hi Pat.  I agree.  Buyers are wise to shop around.    AND, I too cringe when a letter comes from an internet bank.  

Pat, it can make it easier for the buyer, but usually at a price.  Often a very, very dear price!

I think it's good for the consumer to look at their different options. I will say that regardless of who my buyers work with, I prefer it be someone I know and trust will get the job done. Some buyers do get so fixated on rate that they'll choose an unknown out of town company lender and when things go bad, they show very little accountability. In terms of using our in-house lender, I do know that if there is a problem, he will be attentive or else 60 other agents in my office will hear about it.

Pat,

I tend to agree with you here, much to the chagrin of my broker. I'm not convinced that buyers and sellers aren't suspicious about the one-stop shop operation.

Rich

☔ Pat, I would have to say it depends.  I wouldn't recommend anyone (in-house or not) IF I DIDN'T FEEL THEY WERE THE BEST!  And that opinion would be/and is based on years of experience with the service provider.  So if they happen to be a part of our full service and they do a great job why NOT?  It's a service that many of our clients find very helpful and convenient.
Pamela

Hi Pat - RESPA keeps our company from putting pressure on us to use their affiliated businesses, and it's a good thing, because we're crummy team players in that regard. We have found that the expectation of captive business means that the level of service, both to our clients and ourselves, from these companies is just not good enough.

I don't seem to ever refer people to our "in-house" mortgage person because that person comes and goes and changes to a different company every so often, and I like the relationships I have.

Indeed, it does pay to shop around to compare prices but also good to ask your agent before you make that final decision........I know of a couple of title companies that are on the 'avoid if possible' list of several agents because of problems with getting closings done on time.