Over the course of my 20+ years in the mortgage industry, I thought that I had heard it all, seen it all, done it all, and could forecast it all! It is very clear to me now that NONE of these things are true! However, I do clearly understand that there is, and always has been, a serious "cloud of doubt" hanging over the heads of lenders, as well as a "cloud of dis-loyalty" hanging over the heads of realtors. This blog posting is quite frank, so please don't take offense! We have to work as a team in order to survive, and sometimes that means getting straight to the point! The best part of these types of blogs is the fact that they create discussion and provoke thought! How many times have we all heard that "perception is reality"? Probably more than anyone cares to admit, so here goes!
Perceptions of the Lender:
The Realtor makes A LOT more money on a transaction than I do.
The Realtor is pushy, demanding, and is trying to control the transaction.
The Realtor is quick to blame but not accept blame.
The Realtor threatens to take their business elsewhere if "this loan doesn't close".
Reality is:
The realtor does make more money than the lender does, but they also spend a lot more money getting the property sold! Be appreciative not jealous!
The realtor SHOULD be demanding! They have brought you a deal and have entrusted you with THEIR customer!
I don't think anyone likes blame, but sadly it is a reality. This is an issue of communication. Stay in touch, and do your job to the best of your abilities!
If a Realtor threatens to take away your referrals, find out why. I would agree this is unprofessional, but if you can't come to "middle ground" it is possible the two of you might just not be a good match. This is okay! Fire them! Move on to another one! I have found in my travels that the ones doing the least, threaten and complain the most!
Perceptions of the Realtor:
The lender is going to "gouge my customer with fees".
The lender is not going to get the paperwork there on time to the title company for closing.
The money for the closing wont be there.
Will the lender get me my loan commitment in time?
Reality is:
As a Realtor, you have to be willing to accept change. I firmly believe that all of these concerns can be handled through TRUST & TRAINING. Today, a Realtor has to be willing to learn more about the lending side, but yet, allow the lender to do their job. In other words, "You handle the buying & selling of the house, and I will handle the financing." This can be hard! My father was a realtor for 18 years before retiring, yet was VERY accepting of change! That is problem one of many reasons why he was successful! Many people talk about customer service, few actually practice it! People who have done things a certain way for a long period of time can be very difficult to convince that they need to change! As a lender, you have to keep the realtors up to date on programs and guideline changes. At the same time, help them understand the process, and the effort you have to go through to get one loan done, let alone 10! I would suggest having them come in to your office, and sit down with you, and take a loan from start to finish. That way, they will SEE what you do, and better understand the process. This will build trust, understanding, and most of all loyalty! These are all the building blocks of a solid business relationship. A relationship that will flourish through Trust & Cooperation.
Lastly, I recently had a realtor ask me a question that all of you will find interesting! She is a newer realtor, and prefaced her question noting that she was "new" to the business. The question was "What is the difference between a closing cost credit, and just lowering the sale price?" I thought that was a very interesting question. It actually can be answered many different ways dependent upon the sale price of the house, how tight they are on the down payment, if you are buying the rate down, as well as the TYPE of loan they are getting! Any way you slice it, it comes up peanuts! Bottom line, it was a great question! Right there was a "teaching moment"! Look for them!
Happy selling!
Darin
One Source Mortgage LLC
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