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Agent Responsibility or Lender Responsibility? That is the Question.

By
Real Estate Agent with eXp Realty

Agent Responsibility or Lender Responsibility?  That is the Question.

Real estate agents are often a buyers first point of contact in a real estate transaction.  I have no concrete evidence, but my guess would be that real estate agents come into the picture FIRST far more often than loan officers.

When working with buyers, one of the things that I make abundantly clear is that when it comes to matters pertaining to mortgage qualification, financing and things having to do with the loan, then questions should be directed to the loan officer.

Here are some of the questions that I get that can be best answered by the lender:

  • What is my interest rate going to be?  Ask your lender.  Your interest rate is tied directly to your credit (and your real estate agent will not have this privileged information unless you advise your lender otherwise).  Generally, we are informed as to whether or not the lender believes you're a good loan candidate).
  • How long will the pre-approval process take?  I can take a wild guess, but you'll want to ask your lender that question.  That often depends on the requirements and workload of the lender.  I'll be asking these questions too, but you'll want to hear it directly from the horses mouth as well
  • How come they need so much information?  I can provide you with a generic answer, but your lender can best explain why they need so much information.  Different lenders require different things, but to be sure, you should ask your lender directly.
  • But I have already given the lender that info, why do I have to give it to them again?  I often have to ask myself the same question.  You'll have to confirm with the lender why they need it again.  Moreover, it is probably best that you just provide it to them again rather than stifle the process and time is of the essence.  Arguing with them usually doesn't make them find it in the nick of time.

Don't get me wrong, I don't mind inquiring about any of these things, and assisting the lender with getting what they need from the buyer if the buyer needs a little prodding.  But I don't depend on the lender to do my job and just as real estate agents hate it when lenders try to do ours.

Not only should buyers be clear on the roles of agents and lenders, but also the roles of:

  • home inspectors
  • appraisers
  • title companies
  • closing attorneys or agents
  • and the many other players in the real estate gain

Homebuyers make sure you know the roles that different people are to play when it comes to securing your new home.  Your real estate agent is the perfect person to explain those roles as the agent is in the center of it all. But just because we're in the center, the responsibility and/or accountability does not always fall on us.  Each member of your homebuying team should be accountable for their roles in the process.

Still a little unclear?  Don't worry, when you call me, Charita Cadenhead, at 205-321-1200.  I'll sure it's all clear before we even get started and remind you along the way.

Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks BLiz.

I understand Jason.  We are kind of in the same boat with the delivery of messages and request.

A.S.A.P. Roger.  That's why I love the buyer presentation.  It gives me that chance to clear up any urban legends.

Exactly Dennis and contrary to popular belief, there is nothing wrong with saying I don't know, but I can find out for you or direct you to someone who can answer your question.

Definitely an increase Glenn but I hate when that happens because you may end up with an out of state lender or eloan company which is not idea for establishing relationships with the lender.  It can be difficult working with them.

I'm with you Cynthia.  Let them do it.  We don't like it when they interfere with our responsibilities so let them handle theirs (the MLO).

I can't argue with you there Clark.  We do sometimes end up doing someone else's job and it usually pertains to the delivery of bad news.

 

Mar 14, 2011 06:31 AM
Angelia Garcia
Pure Realtors - Dallas, TX

I have buyers ask what their closing costs are going to be.  I tell them they need to get with the loan officer for the gfe.

Mar 14, 2011 07:19 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Angelia we're required to provide them with an estimated closing cost when we right the offer and I always hate that we are required to do it.  I don't even know how that became our responsibility.  I always provide one amd my numbers are usually pretty close, but I still reinforce the fact that they should rely on the estimated closing cost provided by the lender rather than the one that I provide.

Mar 14, 2011 07:40 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Charia, It's true.  Most of our clients trust us so much, that they do think that we know it all!  I follow the same rule of explanation as Dennis (in the above comments) does.  Let them know that you can find someone to answer that particular question. 

Mar 14, 2011 08:12 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Frances I hear you loud and clear.  I am a firm believer in staying in my lane of expertise.

Mar 14, 2011 08:22 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

"Real estate agents are often a buyers first point of contact in a real estate transaction."

As an MLO, I'm going to politely disagree with you, my friend, and say that these days it's just the opposite.  :)

As for the whole "I have already given the lender that info, why do I have to give it to them again?"   More times than not, the answer for that is that the info they have already given us is either incomplete or outdated (six month old paystub, one page of a six page bank statement, etc.....).

Mar 14, 2011 08:46 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

I guess both sides would argue the same with regard to point of contact.  Who knows?  I'd be interested in knowing the truth as it relates to a credible source.  As for paragraph #3, I guess that answers that question.

Mar 14, 2011 08:53 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Wouldn't it be fun to take a nationwide poll and find the answer. Which professional do prospective buyers contact first... the lender or the agent?

I guess the real answer is: The Internet.

(Unfortunately, that's a good source of misinformation for many.)

Mar 14, 2011 11:41 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Charita - Two years ago, I would have agreed with you that the real estate agents were the first point of contact with a buyer. But the more we blog and the more buyers do their research on the internet, they are fast becoming better educated as to how the home buying process works. The buyers that have come to me for the past couple of years have already been pre-approved with a lender. The only downside of that is, I can't refer them to an MLO that I know can get the job done. Usually I have never heard of the MLO before and that can sometimes be a crap shoot! A nail biting crap shoot. And I'm sure the MLO's feel the same way about us ... LOL!

Mar 14, 2011 11:47 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Marte I would really be interested in knowing the results of search a survey. But you are right, the Internet would be the number 1 stop. I'm going to see if there is answer to MLO or agent first.
Mar 14, 2011 01:01 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Cynthia I guess I would be basing that on the calls that I get. The first thing that they say is that they don't know where to start and I go grass because that means that I get to refer them to someone that I have worked with.
Mar 14, 2011 01:05 PM
Nona Swann
Swann & Associates Real Estate - Indialantic, FL
Serving the needs of the Sellers in Brevard County

Charita,'Very clear and informative blog. I will use it for my Buyers also. I do not ask any financial/mortgage questions other than have you been pre-approved. When asked those mortgage questions I also refer them to a lender.

Mar 14, 2011 02:47 PM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

In Atlanta, I still see that buyers think about financing only once they have identified a house.  We seem be the afterthought.  I do completely agree with Donne #14 for the documentation,  Generally, we need something more current or all of the pages. 

Mar 14, 2011 02:56 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Nona I don't blame you.  We know a little about everything, but we are not experts on every subject.

Rodney that's what I'm getting.  Both you and Donne makes sense on the providing current data.  Sometimes it's questionable when it's asked for so often.

Mar 15, 2011 12:24 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Awesome advice Charita!  I often tell my buyers that they need to speak to these particular experts as I can only give them a guess on these questions. 

Mar 15, 2011 02:06 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Brenda we will usually have very "general" knowledge, but by no means do I want to pretend to be as knowledgeable as a loan officer.

Mar 15, 2011 02:32 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Charita - After giving your post some more thought and seeing some of the other comments, I'm thinking that what you and I may be seeing are different market characteristics.  Rodney mentions that prospective buyers in Atlanta seem to still put off talking to a lender until they have found a house, which is the opposite of what I am seeing here in SoCal.  Perhaps it's just one of the many differences between the southern US markets and west coast markets (Cynthia has noticed the same thing I have).

Yes, I do occasionally still hear from my Realtor friends that they do still get people calling them to see their listings and when my Realtor friends ask about pre-approval, the prospects don't have one.  But I do hear that is happening less and less these days.

After I pre-approve someone though, I will always ask my borrowers if they have a Realtor/agent and many of them will often tell me that they know someone.  This is when I go into my speel about working with the right kind of Realtor/agent for their needs. Don't even get me started on some of the Realtor/agents that my borrowers know (that's a whole other post).

Mar 15, 2011 04:59 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

That's not surprising Donne considering that there are vast differences based on Regional customs.  It can be a blessing and a curse when a buyer comes to us with a lender already in place, particularly if we don't have a relationship with the lender and don't understand their style.  In the end, all that any of us want is a closing.  And if we can get there......Well Amen!

Mar 15, 2011 05:05 AM
Stephen-Michael Washington
Pre-Approval, First Time Buyer, Fixed Rates - Birmingham, AL
FHA and VA Mortgage Loans Alabama

Amen! As a lender, we have a responsibility to be accountable, not only to the client, but to the realtors as well. In building a great working relationship with a realtor, lenders have to be able to communicate effectively. Then we will find  that the realtors would only have to do their jobs and more can be accomplished! We all have the same goal: providing customer satisfaction and creating a new homeowner!!!

Mar 15, 2011 11:02 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Good outline of the issues Charita!  Great post!

Mar 19, 2011 01:35 PM