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How Many Lendors Do You Use?

By
Real Estate Agent with Keller Williams

Hello Fellow Realtors:

I thought I would pose this questions to all you seasoned Realtors.  How many lendors do you use?  Do you submit your client's financial information to just your favorite lendor or do you send it out to a couple of lendors.  Perhaps in todays market where we are finding more loans going south during the last hours of escrow it is prudent to have more than one loan packet ready to go.  What is your thought on this subject?

Thanks, Arlene

Mary Warren
Las Vegas, NV
I recommend 2-3 lenders to my buyers...I suggest they interview them and select the one they 'jive' with.  I tell them if they don't like any of my recommendations they are welcome to use their own choice for a lender or I can give them another list.  My lenders usually e-mail or call me after a buyer speaks with him/her and lets me know how it went.
Dec 10, 2007 04:25 PM
Roberta LaRocca
Simply Vegas Real Estate - Las Vegas, NV
REALTOR®, Broker, Salesperson, NV. Lic BS.507
Arlene, It might be a good idea in this market to have more than one loan packet ready to go.
Dec 10, 2007 04:28 PM
Nancy Brenner
Referral Associates of Georgia, Inc. - Roswell, GA
Roswell Georgia Real Estate Agent
I never submit my clients information.  I give my clients the names and numbers of 3 - 4 lenders that I am familiar with, have worked with.  Lenders that I know will get the job done.  I tell my clients to interview the lenders and pick the one that they are most comfortable with.
Dec 10, 2007 04:50 PM
Charlotte Home Loans Your Charlotte Mortgage Lender
Charlotte, NC

One thing to keep in mind in "today's market" is that by sending clients to 3-4 lenders, they get into a "rate shopping game." Used to be not a problem, but with the new changes to pricing by credit score models, today that may not be the best advice. A lender can no longer offer a rate based on what they think the buyer might qualify for. A 10 point difference in score could mean a 1/2 point difference in rate! So lenders now need to do a real pre-approval... credit, income and more.

My advice is that YOU as the agent find a good, reputable and knowledgeable lender that you can trust knows what they are doing. A great loan officer will not be the reason one falls out... underwriters are under a tremendous amount of heat to be absolutely sure they are approving loans that will not default in the future. In many ways they are over-correcting.

But a great LO will know what is going on, how to set things up properly and can be your best insulation against fall-out. Multiple loan packages can create issues and in some ways kill a deal itself. And if all 3 of your options are limited on their expertise, you've got 3 fall outs coming!

The new obstacle in referring to multiple lenders is total confusion for your buyers. How many of you have had a buyer that wanted to work with multiple REALTORS until someone found the home they wanted. Then they would sign an agreement with that REALTOR. That creates confusion... who showed what? Who did I tell what to? Works that way with lenders too.

So I highly recommend you as the agent start talking to LO's. Find one that knows his stuff and will give you a solid pre-approval based on credit, income and reserves being reviewed, not just spoken about. There is a difference.

Dec 10, 2007 10:21 PM
Erin Stumpf (Attardi)
Coldwell Banker - Sacramento, CA
916-342-1372 / DRE# 01706589 Sacramento, CA
I have exactly one go-to lender who is the best.  Then there are some others that offer niche products that I refer clients to here and there when appropriate.
Dec 11, 2007 03:38 AM
Arlene Cristobal
Keller Williams - Danville, CA
Thank you Terry and Nancy, it seems that most of the other Realtors also use more than one.  I feel it's important that our client feels comfortable with their lendor and giving them more than one name it just good customer service.
Dec 11, 2007 01:00 PM
Arlene Cristobal
Keller Williams - Danville, CA
Mary:  I feel you are right.  I like to take it one step further by calling my lendor and giving them the client's information and let them take over the loan process at that time.
Dec 11, 2007 01:02 PM
Arlene Cristobal
Keller Williams - Danville, CA
Roberta:  Is this something that you do?  I know of other Realtors that have to loan packages at the signing table.  That is alot of information to cover but it helps to ensure that there is a loan at the end of the day.  I know of an agent who's escrow fell out on the day of closing because of this loan mess.
Dec 11, 2007 01:04 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

Short Answer 3.  I have my bank lender, good programs for high credit, I have my mortgage banker good programs where the Buyer may be more challenged and I have a hard money lender just for fun.

Take care!

RJH

Dec 11, 2007 01:06 PM
Arlene Cristobal
Keller Williams - Danville, CA
Thank you Ed:  I was hoping to hear from a lendor and to get your point of view.  It's always prudent to see all points of view
Dec 11, 2007 01:06 PM
Arlene Cristobal
Keller Williams - Danville, CA
Thank you Robert, looks like you have all basis covered.
Dec 11, 2007 01:09 PM
Alan 'AJ' Nisen California Contra Costa Mortgage Officer
A Large Bank in America - Lafayette, CA
I agree that at least 2 or 3 lenders should be presented to the clients.  I also suggest that the client get at least to GFEs to make sure that the lender is not taking advantage of them.  Lastly, in this market, I suggest that a purchase contract be presented backed by a large bank to give it a greater advantage over other offers.  AJ
Jan 05, 2008 07:06 AM
www.SeeAllListings. com
SeeAllListings.com - Camarillo, CA
i like choosing 2 or 3. Its bad when someone knows they have all your business. You get a little extra when someone knows they have to work for your business
Jan 07, 2008 05:26 AM
LaNita Cates
REMAX of Joliet - Joliet, IL
I have two lenders that I use. I have one lender that pretty much works with conventional only and another lender that works with FHA mostly.  I do agree with www.SeeAllListings.com. Having more than one is a good thing so they work hard for you and your business.
Jan 07, 2008 05:41 AM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

Use only 1 (but know a couple and keep them in mind) here is why (a lenders perspective.)

- Do you have enough buisness that you can keep 3 or 4 lenders busy enough to make you and your clients a priority? -Giving a client 3 or 4 names does not instill any trust at all in those names. -Information overload occurs and they tend to throw up their hands. -Clients want to know who the best in the industry is, who DO YOU RECOMMEND. They could pick out 3 or 4 lenders themselves and get similar results. -Saying to the lender "I gave someone your card but they went with one of the other 4 I gave them, sorry" doesn't count as a referral. -Where does the risk lie for you, in sending your clients to 3 or 4 lenders whom you have an on again off again relationship with or with one or 2 that will work their guts out for you because your help put food on their table month after month? Thats right, many lenders work on commissions just like you. 

When I have someone walk in the street looking for a Realtor I refer them to 1 and only 1. I have a couple in mind and go for personality compatibility and area of expertise. I do everything in my power to instill confidence in the buyer that this Realtor is the one for them, I lay the cross sell on thick. So I give the card and also ask if I can have the Realtor contact them. I have sent 2 or 3 clients to Realtors in the past couple months and all have been very pleased with the results. It turns into a reciprocal relationship and both the Realtor & I work together as a team. Do you want someone on your team that is not willing to put YOUR interest first for the sake of the relationship? 

Realtors focus a great deal on creating "clients for life". Why not create a "lender for life" whom you know every time they talk to your client will cross sell you and market you?! I am creating a "Realtor for life" and the synergy is awesome.

I hope I did not offend, I was a Realtor 2 years ago and understand the supposed "risk" in only 1 but the risk ends up truly being with 3 or more.

Jan 07, 2008 06:07 AM
Arlene Cristobal
Keller Williams - Danville, CA
Thank you all for your responses to my last blog.  It is interesting to see the definite line drawn between lenders and real estate agents.  It seems that among us Realtors, we tend to use more than one lender.  I for one have two lenders that I refer my business.  More than two would just be to difficult and time consuming for everyone.  Among the two lenders that I use, both are different in personalities, their style of doing business and what they have to offer.  When I meet with a client I look into their personality type and how difficult it will be to get their loan.  I offer them the contact information of both lenders, but tell them why I would prefer one over the other and let them make the decision.  Again, thanks for your input
Jan 09, 2008 01:34 PM