Real Estate Professionals How Far Will You Go?

Midori, it's all about the TRUTH with me.  I would rather them get the best deal and call me to sell their home because they are buying more.  Then to call me in 1 years because they can't afford the home. 

Midori, When I meet with my buyers I do a good faith estimate for my buyers.  They have to sign it and it becomes part of the contract in my office.  They know I am not quoting rates, we use an average rate and I tell them that they have to confirm and lock in with their lenders.  However, I want my buyers to know how much money is needed for settlement and that they are clear about what is going on and what the items ARE on the GFE.  I find that many lenders speak lingo to the clients.  I do not negotiate or talk about the lender's compensation. But if someone brings me a GFE that looks like predatory lending is going on, you bet I am saying something. In MD, we work under a fiduciary relationship I have to do what is in their best interest and protect them through the transaction.

 

Midori,

As an exclusive buyer's agent office we do help buyers shop and negotiate mortgages.

It does take training and it does make a few of the local lenders uncomfortable, but we've done it for 15 years now and save our buyers hundreds of thousands of dollars. (And a whole lot of frustration!)

Like Lola mentioned we've seen some amazingly bad loans that the home buyers were willing to take because they didn't know any different.

 

For a few years we even had a class for buyers "All About Mortgages".  

I question everything. What can I say? I'm suspicious of pretty much everything. An agent I used to work with always told me I was really from New York but I just didn't know it. LOL I'm from right here and she's from New York. I guess I reminded her of home =P

Midori - I am not a lender. I advise clients to get pre-approved with the lender that will respond the quickest when we need a letter for an offer. I then advise them that they do not have to make a final decision on any lender until they are at the settlement table. I suggest that they take the good faith estimate and shop it with other lenders. Yes, I do point out that the source of the funds is probably the same place and most lenders are working with similar guidelines. I also point out that the other lenders will almost always offer a better deal than the first one they received. It is the nature of a competitive market. I always encourgage them to return to the first lender and let them see if they can re-work what they offered to match subsequent offers. Then I tell them the go with whomever they are most comfortable with as long as I can substantiate that they will arrive with funding at closing.

Leave the lending advice to the lenders.  

Good question, Midori. I know it is legal and some agents originate loans, but I like to keep it separate. I have a great lender and if she says they are golden, they are. I don't stage houses either, I leave that to the stagers, I list and market homes. The end.

I try to stay away from that side if I can...when the buyers agent calls me asking me to step in because they can't get anywhere then I cringe before that happens. The buyers agent should be strong enough to get the lender to follow the contract...but it seems that they never read the RE contract and work at their speed. I have a deal right now where I have asked for proof of funds 5 times...where dos it say the MB is deciding when and if we should be receiving it? Commitment letters are also over due on a regular basis and shouldn't be promised if they can't meet a deadline. Also buyers should be advised that if they change lenders in the middle of a contract ...they are playing with fire if deadlines aren't met.

Grr....towards the end of last year an agent received an offer. The cover letter from the agent said....the loan officer told me how to write the contract. WAY over list price with gift back from seller????  Oops.

That is a great question and a fine line.  I love your blog by the way!  Looks great!   I always try to get them the best deal.  Meaning....if their loan doesnt look good...im going to give them another name.

While I'm not a mortgage broker, tax accountant, home inspector, etc. I try and give my clients a sanity check on issues they that may bring up. As an advisor to my client, I feel that it is important that I bring up topics that they may want to discuss with their mortgage broker, accountant, tax advisor, etc. Our clients oftentimes don't know the questions to ask (or that there is an issue they should be concerned with).

I am pretty comfortable with the lenders most of my clients use. There are some "mortgage pros" I will keep an eye on...

I handle it the same way you do. I look at the numbers, talk to them about them but defer to the expert. If I feel  they are being taken to the cleaners I suggest that they question the numbers and talk to another lenders.