Buyers, chose your lender with care

By
Real Estate Agent with Keller Williams Realty-Fayetteville

I am not sure if very many agents have had this happen but today, it happened to me.  A potential buyer last week seemed very interested in using me as their buyers agent.  We spoke, sent texts and emailed back and forth.  Today I called to follow up and was informed, “oh sorry but I found another real estate agent through my bank”.  Uh oh...with a sinking feeling in my stomach I ask, “is it through USAA ?” to which he replied “yes it is”.  Here in Fayetteville, NC this seems to be an issue that comes up time after time...we have a huge amount of military who use USAA to bank (which I also use to do my banking).  However, when people go to use them for a mortgage they are offered up to $1500 cash back if they use USAA  as their mortgage lender.  Shawnas frustrated
This is very frustrating to me as an agent.  The buyers have no idea they are paying for this $1500 they are getting back in fee’s and sometimes higher interest rates!  They are also getting the next agent on the list...not always the best agent for them, as well as an agent that is giving up a huge portion of their commission just to get the business...which again is not always to the clients best interest.  I have heard of agents only showing houses with bonuses or higher commissions just so they can make more money.  
I personally have had two clients this past year who wanted to use USAA, and once we got the Good Faith Estimates realized they were actually going to be charged more going through USAA than using a local lender.  I always suggest to my buyers to speak with two lenders and compare...who is going to give you a better rate, and charge fewer fees.  After all, this is your money Mr. and Mrs. Buyer.  You may get $1500 back at closing, but when you pay almost $700 in processing fees and then a higher interest rate, that $1500 really isn't that good of a deal.

Posted by

Shawna Green, Realtor

Call or Text me (910) 309-4618

Shawna@LibertyHomeTeam.com

www.LibertyHomeTeam.com

 

Shawna Green logo

Facebook, Shawna GreenTwitter, Shawna Green       Linkedin, Shawna Green

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Keller Williams 'Rainers
Military
North Carolina Relocation Info
EXPRESS WITH WORDS AT ACTIVERAIN
31 Days of January - New Years Resolution
Tags:
fayetteville nc
lenders
va buyers and sellers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
140,819
David Beckham
Realty Executives Bayou Properties - Alexandria, LA
Your Louisiana Real Estate Connection

Shawna I completely agree with you. This blog caught my eye right away. I will be writing a blog later this evening about a local lender sending my clients to FSBO's.

Jan 24, 2011 10:32 AM #1
Rainmaker
78,184
Shawna Green
Keller Williams Realty-Fayetteville - Fayetteville, NC
The key to your real estate needs!
David,  thanks for reading.  Wow, I can't wait to read your blog and hear the rest of this story!
Jan 24, 2011 10:41 AM #2
Rainmaker
601,332
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Shawna - OMG!!!  That's despicable!  It just amazes me how carelessly people choose their lender and Realtors.  One of the biggest purchases of their life and they spend less time and consideration choosing the people to help them than they do ordering a pizza.  It just makes no sense to me.

Jan 24, 2011 02:18 PM #3
Rainer
26,996
Amanda Simpson
Keller Williams Realty - Fayetteville, NC

David-gotta read that one.  Sounds very interesting!

Shawna-great point.  We have to educate buyers to look at the whole picture.  If they don't know to, then they don't know how bad the deal really is.  But it's a huge challenge to overcome such a large influence in a military community.

Jan 24, 2011 02:19 PM #4
Rainmaker
78,184
Shawna Green
Keller Williams Realty-Fayetteville - Fayetteville, NC
The key to your real estate needs!
Donne, I totally agree...I just wish they would give us the chance to explain it to them upfront...but all they tend to see are the $$$ at the end of that rainbow!

Amanda, yes we need to educate them, but sometimes we never get that chance....and I am unsure how to get that information out there sooner!
Jan 24, 2011 02:28 PM #5
Rainmaker
217,258
'The Diamond Group' 'A Cut Above The Rest'
The Diamond Group @ Keller Williams - Lubbock, TX
Lubbock Texas Real Estate

Shawna, the lender is such an important part of the transaction and the charges can be so different.  Such a good recommendation to your buyers.

Jan 24, 2011 03:06 PM #6
Rainmaker
826,377
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

I agree.... Lenders are so important and can be vastly different. I have found a few that I trust completely and cringe when the buyers use someone else... even the ones that aren't part of a referral network like usaa, you never know when they are gonna "refer" YOUR buyer to another REALTOR!!! I have had that happen and of course it was the last time I sent a buyer to THAT lender!

Jan 24, 2011 03:46 PM #7
Rainmaker
289,867
Ellie Penaranda
239.776.5077 Downing-Frye Realty - Naples, FL
Naples Florida Real Estate - Waterfront & Beach Co

Shawna, I do not understand why buyers would still want to take real estate advice from their loan officer.

Jan 24, 2011 04:00 PM #8
Rainmaker
78,184
Shawna Green
Keller Williams Realty-Fayetteville - Fayetteville, NC
The key to your real estate needs!
Elizabeth, yes its amazing the different charges that each lender charges. 

Shelia, I am lucky enough I have never had a lender send my clients to another Realtor...but I agree, I would never use that lender again!

Ellie, well in the case of USAA in order to get the $1500 they have to use their "preferred Real Estate agency".  There are 2 companies that share those leads and it goes to the next agent in line.  
Jan 24, 2011 09:47 PM #9
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
78,184

Shawna Green

The key to your real estate needs!
Want to ask a question?
*
*
*
*
Spam prevention