Do you get involved with a clients financing

As a mortgage guy, I must say a couple of things.  1) I sell the financing, you sell the property. 2)As a loan officer I know the TRUE financial situation, you don't. 3)I don't tell my clients to go to another realtor because they will only charge them 4 points to list their house instead of 6, nor should I, it is none on my business.

That being said, I know there are unscrupulous loan officers out there providing less than ideal financing, and you do have a fiduciary duty to your clients to protect them from "bad" loans, but unless you know the entire situation, how do you know it is a bad loan.  You can suggest to your clients to shop around, I am prepared for that since I am a professional.  I hate it when I am scraping the bottom of the barrel on a loan I have worked on fixing credit issues for a year and a realtor says to the client I know a guy that is here in my office maybe he would be easier to use him.  Then my phone calls stop getting returned and I am out a loan I worked very very hard to get. 

The thing I tell all the agents I work with is that I recieve a significant amount of leads in their area that have never had contact with an agent, and that I need referal partners in their area; I hope that we have a smooth easy transaction so I have someone I can count on to send my leads to.   

We all rely on referal partners and to steal a transaction from a potential lead source is stupid in my opinion. You never know how many potential clients may or may not be sent your way depending on your actions.

I don't mean to be harsh, but I think this must be said.

I agree with David to a certain extent.

A buyer is both parties' client: the Agent and the Broker.

What if us mortgage guys didn't think an Agent was working hard enough for our client? What if we knew of an Agent who would better serve our client or show our client more houses they would be interested in buying? Should we refer that buyer to another agent in the best interest of the client?

Honestly, if you think the mortgage guy is doing something shady - contact him directly, leaving the buyer out. Ask him why the terms of the loan are the way they are, and good chances there is a reason. If not, at least you left the shady mortgage guy feeling stupid for getting caught selling an un-beneficial loan to a client.

I suggest they speak with another loan officer if the buyers do not have good relationship with the loan officer.  If the loan officer is good and buyer feels good with them I leave it alone.  Many times the buyers know nothing about loan officer.

Jason - To me it sounds more like you wanting the clients to have doubts. If you have doubts call the LO and ask him about the transaction, then if you are not satisfied, call in your financier.

Michelle, Great controversial blog, good one,   let me tell you what I think about this, if the client that I am working with is a referral I keep my mouth shut off and I do not make any opinion or something like that, If the clients that I am working with they are happy or feel happy with that mortgage broker or loan officer, I do not have to say that they can get a better rate or shop around for a better program or interest rate. My job it is to advise them about the buy or sell of a home, not the financing part in this scenario.

Now, if I get a client by myself, then I can consider to tell them that they can shop around, I believe that it is not loyal to ruin someone's customer because we think that it is not a good interest rate or loan program.

 

http://www.mortgageporter.com/reportingfromseattle/2007/04/when_are_you_ob.html

 That is so brilliant I cannot say anymore.

This seems to be a topic that comes up periodically on here! I have to say that I agree with David and Justin. You're area of expertise is selling property, if you feel that your client is not getting a good deal then why don't you talk to the loan officer? You 2 are both professionals working together to serve 1 client. Why confuse the client and fill their head up with doubts that is not in your area of expertise? In the end it's really the clients decision whether or not they buy the property from you or whether or not they stay with the same loan officer. And everyone is right...how would you respond if the loan officer told the client that he/she thought they weren't getting a good deal on the property? I'm sure you would rather that loan officer bring their concerns to you and not go behind your back.