Why Should You Trust Your Agent's Recommendation For A Lender

Thanks Karen.  So important to trust that your agent has your best interest in mind.  That is why they do what they do for you.

What a great post about trusting your agent to know who the players are in their market.  This is true not only about the lender but also about anyone else they recommend to you.

Karen Fiddler, Broker/Owner our relationship with the lenders is very important!

I remember a buyer - despite my advice - opted to work with Internet lender (who did not want to communicate with me at all!) and ended up with delayed closing and lots of stress! The closing costs promised were evaporated and ended up spending lot more in closing cost than expected! That 1/8 point of difference in rate disappeared at the time of closing, because....

Karen, trusted referral partners are so important in our business. We need people who can get the job done and treat our clients right.

I like to stick with the tried and true you know what your getting.  The old saying "If it ain't broke don't try to fix it" applies here!

Well said, Karen. I have one specific lender that is my go to for most situations. He does an awesome job 99% of the time, and if things go awry, he makes it right. I do have two other lenders I use for special situations. It's same with the closers I use. Clients really should trust us. We really do have their best interest at heart. 

Good morning Karen. This is spot on and very important. It is a matter of trust. Buyers sometimes feel there is a financial incentive for us but that is never the case. Worth their weight in chocolate.....now that's saying something.

Having a husband in the mortgage business and knowing how often he is referred by Realtors all over the country I completely understand your post. I WOULD MUCH PREFER seeing a prospective buyer referred by a Realtor rather then going on line for example searching for a lender.

Karen great post!

Karen - Very good point. A good agent that clients can trust will also work with good lenders that a client can trust.

Very good advice, everytime I expand to a new area once I find those few lenders that I know will go above and beyond to get things done before its due and keep everyone informed I recommend them everytime. It can safe so much stress. Have a great weekend!

The days of a Lender being able to offer "help" or incentives to agents for their referrals may be coming to an end, Karen Fiddler, Broker/Owner ... as the CFPB is taking a very critical eye to any arrangements of this nature between Lender and Agent/Broker.  Although in typical fashion, that CFPB "eye" may go a bit overboard, some of the examination is warranted and will level the playing field between lenders allowing for clients' choice being totally based upon performance, mortgage options, and service.  

You're absolutely right when you say that agents know which lenders are dependable and provide excellent service to their clients.  It only makes sense and clients need to pay heed when their agents make recommendations ...

Great post and advice!

Gene 

Yes like local lenders that not only give great service to go along with a competitive rate, but also those that don't use AMCs for obtaining an appraisal. On that I could relate a few stories!

Karen

While I agree with your premise, Gene Mundt in comment # 61 has made an excellent point.

The CFPB has just recently come out with scathing penalties and fines against several major players including banks and large mortgage companies.  Although related to MSAs (Marketing Service Agreements), the CFPB has the "Cross Hairs" on the industry, including Realtors and Builders.

This could have a serious consequence for any types of referrals in the future as there is no clear understanding of the rules that the CFPB is, and has been, enforcing upon our industry.  What was once thought of as legal, due to the CFPB's enforcement and penalties, many are running away as fast as they can.

Almost every major player either has, or is in the process of "Bailing" from these arrangements.

Sorry to ramble, but along with all of the Regulations that our industry has been slammed with, including TRID, I see some potential uneasiness at least for a while when it comes to referrals..........even though like as you said, they are due to great past performance by the vendors.

Thanks for the well written post.

Great advice, Karen.  SO important to work with a seasoned, qualified, reputable lender.  Most people don't realize how badly a lender that can't perform can screw things up to the point of a cancelled transaction and shattered dream.

I've got a couple of clients right now that have been referred to me via out of area agents.  They came to that agent via their lender.  I have a system in place to assure a timely closing.  I always wonder who learned what from me by the time we're closed.

I especially worry about the buyers who found a "great rate" online.  When problems come up just before the settlement there is no one to get hold of...

Karen....really good advice. While I am always looking to make connections with realtors I do respect the relationship that an agent has with their lender. On the flip side we lenders do have a relationship with our realtors and we know who the good and not so good agents are.

Hi Karen, you make the point perfectly!  Home buyers hired their agent to counsel and guide them, and the selection of a lender is among the highest of priorities.