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Is the referral from your realtor more powerful than someone from the internet?

internet

So, what is the answer to the million dollar question?

Question : Is the referral from your realtor more powerful than someone from the internet?

Answer : Yes and No.....

The internet is very widely used for so many different uses nowadays. The NAR, National Association of Realtors, has stated that 80% of the consumers start shopping for homes and mortgages online. Now, that doesn't mean that all 80% will finalize their deal with someone online. But they at least start their process online.

So, how do you know who to trust? My advice, do some research. You can search individuals names on the internet just by typing their name into Google. You can also check with the BBB, Better Business Bureau, for any complaints and your state banking commission in your specific state. Lastly, if they blog, you can read their blogs for several weeks to get a good feel of who they are and if you click with them.

trust Trust - Such an important word and so over used in sales. Not only over used, but abused more than it should be. Sales person... "just trust me" "no problem" "guaranteed", "I promise", etc etc. We could be here forever on the meaning and how it's abused.

So, not to get away from the initial question. I believe that there are some excellent realtors out there that work with some superb loan officers. But this is not always the case. I know this first hand because I just closed a few that were denied by the realtors choice of lender, all local. I will say this, I have met and talked to more than a few here on Active Rain, that are excellent realtors. And if you don't have one, don't hesitate to pick a realtor from this platform.

The main question then should be, "when do you not trust anymore?" Walk away from that lender, loan officer, or realtor? My opinion, depending on the reasoning or excuse, 2nd chances should not go beyond that, to a 3rd chance. That's if you give that person a 2nd chance.

What does all of this mean to me? Integrity, honoring my word, and pride. I am a mortgage banker, not broker, in the state of New Jersey. At this moment, I am licensed in 11 states and soon to be all 50. Nothing against the average loan officer, but almost anyone can do a conventional mortgage with 10% down and credit scores over 680. The computer basically approves these types of mortgages. FHA mortgages 95% of the time are much different than this. But that is another topic in itself.

Overall, this is all about comfortability. Are you comfortable with the person that you are speaking with and do you fully trust them. It shouldn't matter if I am 7 states away from you. Here are a few good examples of this.

I just recently closed a 1st time homebuyer yesterday that went to her local lender in New Market, Virginia. The lender had the loan for 29 days and the day of the settlement, April 1st, they didn't have a loan. This consumer e-mailed me April 4th, I took application April 7th and they closed yesterday. The title company even made this comment. "I don't get to many settlements that the clients good faith estimate matched the note at closing." Wow, is it that bad out there?
I had a client e-mail me asking for help, because her lender, who the realtor recommended, told them the day before closing that they were denied. That was another FHA loan and I closed that in 5 business days. I am now working on the realtors refinance for both her primary and investment property. And she just referred me to a client of hers.
I am actually working on a client now, that I spoke to back in February and pre-qualified him. He ended up with his realtors choice. Just 2 Fridays ago, he writes to me, telling me that he is nervous, that he needs to settle in 15 days and his commitment letter is due in 7 days. I finally get him to leave the other lender just yesterday and I handed the application in today. I will still get him to close on April 25th, with a FHA mortgage.

The moral to these stories is not to inflate my ego or tell you that most lenders/loan officers are bad.... even the local ones. But you do need to pick wisely. I would pick those that seem to know what they are talking about, and not just someone that can quote the lowest rates or no closing costs. And read this, which might save you from making a few costly mistakes. Consumers need to be aware of these Red Flags !!!!!

*** 65% of my business is all out of state, so you can trust others that aren't local.***

___________________________________________________________________________________

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Posted by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans on 04/19/2008 01:47 AM

Comments (41)

trust, mortgage lenders, loan officers, realtors, fha mortgages, broken promises

Originally posted at: FHA Mortgage Expert - Tri-State Area - New Jersey/PA/Delaware: Is the referral from your realtor more powerful than someone from the internet?

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41 Comments on Is the referral from your realtor more powerful than someone from the internet?

APR

2008

Internet leads can be iffy. I do think a referral from a realtor can be one where they trust the judgement of their realtor friend and they are definitely moving. I love the internet because I don't have to pay that referral fee.

Jeff - I'm with you on the answer. Some of my closest relationships were established with those who found me over the Internet. Some were on referrals. Trust is earned, almost never given. Follow up builds trust, availability builds trust, delivery builds trust, and trust is the very core of any successful relationship in business or life. Nice work.

Great topic. I also think the word trust is abused. There are some people that should not be allowed to use those words!

Jeff--Finding a loan officer on the internet from a google search might be difficult. However, getting to KNOW a loan officer or Realtor through their blog is a good place to start. By reading someone's blog, you can get a good understanding of how they work and what they know. When you pick up that phone, there is a sense of knowing that person immediately from the internet communication...If they sound like what they wrote. You sound exactly like the mortgage professional you are...On your blog and on the phone...Your professionalism comes through loud and clear! :)

Jeff, I agree with you also. I would pick those that seem to know what they are talking about... And I agree with you, but to the average person, this is greek to them & they don't really know if this person knows what they are talking about or if it's bs. Don't get me wrong, I'm not picking at you, Jeff. But I totally agree with your premise.

Jeff,

Sounds like you're getting ready to go 'global'...I must concentrate on 'local' transactions, but I can refer 'globally'!!! Thanks, Fran

P.S. BTW, Belated happy birthday wishes!!!

Jeff - This is a great post with some wonderful points. I always encourage any potential clients to feel free to check up on my credentials if they like.

MARIA..... that was my whole point.... internet leads could be iffy and you would expect to trust the realtors judgment and referral. But in my 2 out of 3 examples, this was not the case.2 of those were referrals from realtors and the loan officers didn't come through.

My other part of the point is... even though I am on the internet, I am not advertising rates and such. I am educating the consumer about FHA loans. I also write about myself a tad and write about examples, such as these. The consumer can then read them for weeks and get a great feel for who I am and not just name. The Life of Jeff Belonger -- Who is the guy behind the numbers ????

Lastly... you did hit a key point.... working the internet in regards to blogging is either free or very low cost.

JASON S. ...... wow.... you went right down the ladder and hit all the key points. Availability is a big one. Can tell you how many times I hear someone tell me that their lender doesn't answer the phone now or call them back. hhhhhmmmm I think I know the answer. In any case, thanks for the polite compliment.

RYAN..... lol I loved your comment... "There are some people that should not be allowed to use those words!"
Love it..... there are a lot of things that people shouldn't be allowed to do.... lol Thanks for the compliment.

TERI...... Sorry if it might have sounded a tad confusing. What I meant is when you are given a loan officers name, search their name on the internet....do some research. On the other hand, you can also find people on the internet ... just as we blog, people search key words and find us. And as you stated, they can read what we write and get a chance to know more about us, which I think is key. Overall, thank you very much for those kind words. I enjoyed talking to you also and feel the same. thanks

MARC...... picking on me? nah.... but bring it on .... lol Seriously, I agree with what you said, that people can write good BS and you wouldn't know. But if the clients do enough research, even if they find someone that they like, they can usually tell if there is some BS or not. I'll be launching something great on my page, to solidify who I am, my word, and how clients felt about me after the fact.

FRAN.... I am hoping.... we'll know more next week. I know it will open up the door, big time... and thanks for the b-day wishes.

JASON C. ..... thanks, thanks for the polite compliments. Yes, it's so easy now... just to say, Google my name. Easy and simple, you can't go wrong.

As an agent, I get leads all the time who don't have much of an idea what their credit is like, so I strongly urge them to talk to a lender first. I keep in my pocket the cards of 3 lenders that I know and respect, ready to hand out or type into an email request, so that potential clients can get a basic idea of their comfortable buying power before starting to pick out homes (like all of my lender friends keep begging us to do, LOL).

Some cannot buy at all, but most can. The ones that need some work are usually happy that the lender offers to help them to be in a better position soon--and some of them actually work to make that happen.

As I've learned and moved ahead in my career, I've heard a lot of hooey, and met some great professionals--sometimes by trial and error, but checking with the BBB is a good idea--thanks, Jeff!

I got a call from a buyer a couple of weeks ago, who, through my pre-qualification process, I found were working with another REALTOR. But I gave them your phone number anyway because I was concerned with the information they had been given. I don't know if they've called you or not, but they still might. They were in an extreme hurry.

Nice job F-I-L. But when it comes to a Realtor, it needs to be someone local - even if you find her on the internet. And I can honestly say that while my practice is heavily based upon referral, I have been getting more clients who have found me on the web. I'm the first to admit that the most amazing relationship in my life began over the web :-) Not to mention some of my most valued friends :) [yeah, YOU!]

My clients have been finding me on the net..thanks to the power of blogging! I get a lot of personal referrals from my SOI as well. Great tip in checking with the BBB Jeff.

KENT...... sure, not everyone can buy. But even some of those lenders that are recommended, aren't coming through. And the type of loans that they are stumbling on are FHA mortgages. But yes, I see many realtors with 3 lenders that they refer out to. In any case, not all consumers report to the BBB or complain. That will be my next post.

LISA..... well, thank you very much. But I never heard from them. But thanks for thinking of me.

JENNIFER..... ha ha ha.... Jen Jen.... now, this post was mostly for the consumer choosing a lender. I would never suggest a consumer pick a realtor that was not local. That would make no sense at all.... And yes, I have met some great people on the net, including ..... oh yea, you.

MONIKA.... yes, the power of blogging... I love it and I don't mind being second when another lender drops the ball and I can pick up the pieces. It has led to more referrals as of lately. And yes, SOI is another great way to get business. thanks

I am getting more from the internet and like you am able to put to shame a lot of otherlenders. I just glad that you are not here in indiana

APR

2008

Someone might locate a person using the Internet, but they need the person to be local.

I'm getting contacted by people who find me on the internet too, thanks to blogging on my outside blog and AR. Enjoyed your post this morning.

It's not about referrals. It's about relationships. I have lenders contacting me regularly for buyer referrals. I don't know them. I'm just one of the many cold calls they have made or e-mailed to. Do they seriously believe that I would just "send" one of my precious home buyers to them??? Not in this century.

I have a handful of local mortgage folks to whom I can refer buyers who need a credit review and/or pre-qualification. I know them.

DAVE....... I agree and I am loving it. And the best part of it all is that I am not disappointing anyone, even if they are 5 states over. In regards to Indiana? Just maybe..... ;o) Seriously, thanks for the feedback.

BOB & CAROLIN...... I totally disagree.... a realtor be local, yes. A lender? Not if they have integrity and can deliver. Sure, many can't though. It's easy for them to hide when the deal goes south, because they are to far away.

I would love to hear why you would think a loan officer or a lender would need to be local. thanks....

SUSIE....... I think many of us have received many new clients just because of our blogging on AR and just blogging in general. And I am glad that you enjoyed this in the morning. Just curious.... what did you most enjoy about it? thanks for the polite comment.

LENN...... yes, relationships is important. But even if you have a good relationship and you refer someone to one of your clients, and it goes south..... things happen.

I am sure you have many contact you. I would only refer out business to them, once I got to know them, that's if I didn't have anyone at the present time. It goes back to the old saying, "why fix it if it ain't broken".....

Would I love to get some business from you? Yes, very much so, because I would assume that you know me very well know, just from my blogging... just as I have gotten to know you. But I wouldn't expect you to drop your number 1 person who you have success with over the years. Now, if they came across something that they might have difficulty with, I would love to hear from you and be given a shot. Or at least on your list as #2 or #3. thanks for your input.

Jeff~

I agree and have to smile about the term..."comfortablility"....I think it pretty much sums up what is needed...all the way around..=)

Jeff, I look forward to seeing what you're going to launch. By the way, I like your new background.

Jeff,

I am in full agreement. Trust is earned by establishing a relationship where the foundation is based on facts and accurate numbers.

Whether you get internet or realtor referrals. It is this principle that needs to be followed.

Hi Jeff: Congratulations on building your business. Although I have a decent presence online, I'm so relational that I want to meet my buyers face-to-face and prefer referrals from realtors. I will always be this way. I realize most people find their information online these days but I also think our customer wants a human touch. The more the better. Just my 2 cents!

Paul

JANEANNE...... I think "comfortability" is over-looked often and not even thought of by the client, because they are looking at rate and fees. The market has changed... service is more important than ever and is lacking in many instances. Overall, yes, it sums it all up.

MARC...... I think you will like it... and thanks for the compliment.

BRYAN..... yes, trust is earned in establishing a relationship. But part of my point in here was that it can be done out of state also, which I have proved. But you are correct, it's the principal that needs to be followed.

PAUL...... don't get me wrong, I love meeting my buyers, shaking their hands, etc etc. But 60% of my business is out of state.... even those in the same town are now dropping the ball. Most of this is because you need to know and understand FHA and how credit works. But overall, it's what people are comfortable with.... I enjoy both and my clients, no matter what state that they are in, are very happy. Thanks for the congrats....

I think the referral from the realtor carries more weight. At least another professional has either had them qualified before they got to you.

Jeff - I think if you are buyer and you are working with an experienced agent who you trust, you can ask them for a referral of a loan officer that they have had success with in the past. I provide buyers with a list of buyers who used the lender and their contact information, so they are not just taking my word.. but others who have had success with them. I know there are great loan officers like yourself out there in cyberspace, just like there are great agents... but word of mouth referral in lending and real estate carries a little more weight with me than an internet search.

Some realtors refer their clients to loan officers who they have closed many deals with and have developed some kind of trust. You just don't want to recommend your clients to anyone these days because if they cause a delay or something to go wrong,your client is going to get mad at you. They might end up leaving you and you don't want that. You want to retain your clients and get referrals from them. You do that by being honest with them and deliver outstanding customer service. Great post Jeff.

Jeff,

I agree that the majority are now using the net for both industries but doing a bit of legwork first is always best. If anyone ever questions me I would be more than happy to forward them my resume along with references from past clients and even friends. I won't use anyone in my family as a reference or they might bad mouth me....only kidding:)

ROBERT..... yes, I would agree with that statement.... BUT.... it still doesn't mean that it's the best. Some realtor - loan officer relationships are not to help the client, but to help themselves. So, getting back to your statement, because of my years in this business, because of what I know, and because of who I am... I will disagree with that statement. And here is why.... you said...

"At least another professional has either had them qualified before they got to you."

You is to say that the first person was professional? You? them? Who makes that call? I have worked with loan officers who would get referrals and these guys weren't that good, but the realtor talked them up.

So, the problem or issue that I can see is that we need to define "professional". Just because you are a realtor or a loan officer who has closed a deal, doesn't mean that you can be considered a "professional"... just my .02. thanks for stopping by,..

DEBBIE...... yes, I think you can ask them for a referral. I have no problem with that, because that is how I get some of my business. My whole point of this post was to point out to the consumer that don't put all your eggs in one basket. A referral from whom you trust is not always the best for you... as a consumer, do some research, don't take the referral as face value. Just my .02.

In regards to your statement at the end... yes, a little more weight, but how does one know? research.... Just because you are a good realtor with good referrals, doesn't mean the next realtor is the same... part of my point with this also.

LANRE..... but this happens also... I have seen realtors refer to someone new... but don't you need to start some where? I did when I got in the business. But as you mentioned, you need to be careful on who you refer to, because it could lose you a deal or a client also.... thanks for the compliment and for your input.

NEAL..... I agree, if anyone questions me, just search me or talk to others.... which is something that I am working on soon.. The family thing... lol Thanks for stopping by.

Jeff - First off nice customized page you set up. Congrats on that it looks great! Trust "is" an overused word in this industry. I refer at least 3 people when I refer a mortgage person out to a client. I have come across a few that I definitely "don't" trust anymore because I have found them to be not knowing what they were talking about a lot of the time. I am currently working with a customer that has had their mortgage guy flip flop on what they can afford so the distrust factor is setting in for me. The amount they can afford changes from offer to offer and I won't deal with it anymore. I have written up at least 5 contracts with them now on bank owned short sales and none have gone through for one reason or another and it's not getting me any brownie points in the real estate industry around here. I don't know if they found him on-line or it's just predatory lending still going on. All I know is it's not a good thing. Bob H

Jeff, Yes, I do agree that building relationships can be done out of state. Approx. 60-70% of my clients are 100-500 miles away from me.

It has never been hard for me to build trust over distance, because I just give the facts and provide all information upfront, and work for the clients best interest. Not hard to do and its fun too!

Jeff, Great post! I have built long distance relationships with no problems. Because I was building a "relationship" and not trying to sell them a home. I'm in it for the long haul and trust is the most important thing to me.

I got your e-mail. Unfortunately, I got a LOT of calls that day and didn't make a note beside which one I referred to you =/ I have a bad habit of only making extensive notations by the names that are promising for me. That one already had a real estate agent. Sorry!

LOL....if you hear the word promise come out of my mouth, then it would take death to stop me from accomplishing it. I never make a promise I can't keep. Great post though. It's true those words get tossed around. I think a lot of words get tossed around!

Jeff~ good job, I love hearing about your rescue efforts for people who are in need at the last minute. Your knowlege, integrity and honesty certainly comes through in your blogs. I thrilled that consumers are paying attention.

APR

2008

LISA & ROBERT.... Bob, I think many of us agree that trust is over-used. Just 2 weeks ago, I qualified a client that the other lender missed the settlement date. This is the same person in my first example in the post, at the bottom. She then asked, can you guarantee this. I said... no, I don't use the word guarantee. I just said, I know what I am doing and that I know I can do this. I stayed away from the words trust and guarantee, just to make my point to her. I repeated this 3 times and she finally understood. Well, we closed 4/17/08.... that was my trust and guarantee.

The loan officer that is flip flopping on your client.... SAD, sad that they gave that person more than 2 chances. Tell your client to read this : Consumers need to be aware of these Red Flags !!!!! Let me know if it helps..... On another note, looking forward to helping one of you and Lisa's client for the first time. ;o) And thanks for the compliment on the look of my blog page.

BRYAN..... that's awesome. Yes, it can be done. Now, you said it's easy to build trust over 100's of miles. I will agree and disagree. It's not always easy and I know why. But once I do, I am getting clients for life. And yes, it is fun... and I am also building contacts all over the country, so when I do travel, I will look some of them up.

ELIZABETH.... there you go, hitting the nail on the head. "You weren't trying to sell, but build a relationship." Thanks for mentioning this.

LISA H. .... lol... don't worry... maybe next time. Not sure how good your lenders down your way can do FHA, but keep me in mind. We'll be talking soon anyhow, because I am in the middle of a project, which I will be calling you about.

CHRISTY...... I try so damn hard not to use some of those words... trust me, I promise, I guarantee. Because I use those same words against the person that they are talking to or about. And this has helped me sometimes. It's what I call reverse psychology... ;o) And thanks for the compliment.

LISA R. ..... wow, thank you much for those kind thoughts and comments. Glad that you could stop and hopefully we'll have another get together sometime soon. Hope all is well...

Jeff,

Did not mean to imply that it was easy to always build trust from a distance.

More that being upfront makes the process of building trust and a lifelong relationship easier.

There will always be challenges in building that relationship, but the reward of client loyalty and referrals is well worth any effort.

Jeff,

I have had so many clients come to me telliong me their bad experience with Lending Tree or any of those other online lending services. I am of the belief that it is better to go local, unless a referral is received from someone.

Also, once a borrower submits their social security number to those internet sites, their credit can be pulled by so many lenders. OUCH!

Thanks for the blog!

APR

2008

BRYAN...... I understand... I just wanted to point that out though.... and yes, being upfront does make the process of building trust easier... but they don't always know this until after it closes... because that trust can be broken by some during the process or at closing.

Overall, I agree..... there will always be some challenges. thanks

ANN S. ...... well, Lending Tree and other lead generator companies online, are a 50/50 shot. When you have multiple loan officers bidding for your mortgage, you will run into some snags or problems... misleading quotes or programs... not all of the time, but it will happen. It's the nature of that beast, which I don't like them either... which you can read about here... Zillow Mortgage Marketplace & Lending Tree -- Online Lead Generators - What does it all mean?

And about the credit... yes, this is true.... and it's a shame. thanks for your input.

APR

2008

Your 100% correct, doing research on google or through other resources is important. No longer is it acceptable to just blame the person your working with if you haven't done the proper homework on your own..excellent post Jeff...

well spoken! It's easy to give a referral to someone and not check up. We owe it to our clients!

Jeff:

Nice post, and glad to have this information. Also, congrats on the gold star... pleased that it has been featured. Thanks for linking me to it... we'll be in touch when the opportunity presents itself.

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