Special offer

Trust & Cooperation! The key to the Realtor/Lender Working Relationship in Wisconsin

Mortgage and Lending with Funky Quail Vintage

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!


One Source Mortgage LLC

Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Darin - Nicely done.  Bottom line is that we need to work together, it's in everybody's best interests.  Honestly, AR really helped my perception of Realtors because in my beginning years I had some bad experiences. 

Dec 09, 2008 08:53 AM

Thank Jason!  I am hoping that many many many many realtors read it, and are as accepting!@  Thanks again!  our group is going to be awesome! 

Keep Marketing!


Dec 09, 2008 09:08 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Darin...  I can remember that this has always been the same since my 3rd year in the business.  I have had a few realtors ask me for kick backs, because she told me that we make more money than realtors per deal. This is what I told her...  I said sure, I can pay you, but I would need to raise the rate on the borrower then..  She said, no, you can't do that. I said, then I can't pay you... lol   And no, I would have never have paid her anyhow, but I was trying to make a point...  good insight on this one..

jeff belonger

Dec 09, 2008 05:52 PM
Rob Kelly
RE/MAX Alliance - Louisville, CO
Louisville Colorado Realtor

Nice post!  I've got several mortgage folks that I work with, but it's amazing how few leads they refer to me, so it can be kind of one sided,

Rob Kelly



Dec 11, 2008 10:24 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

I like the lender/agent relationship where the agent knows their job...they bring buyers to the lender and the lender knows their job and brings money to the buyer so the ding dang deal gets closed...the rest of it is just drama. :) Hugs!

Aug 05, 2009 03:38 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Shannon-  Great observations...IF EVERYONE took that approach...MORE DEALS WOULD GET CLOSED>>>quickly , efficiently and professionally!

I HATE DRAMA..but I seem to NOT be able to get AWAY from it these days!@ Any suggestions?? LOL

Thanks Shannon!



Aug 05, 2009 03:59 AM