Question: Are there advantages to working with a lender your Realtor refers?
Answer: The answer to this one depends on both your Realtor and the lenders on your Realtor's list.
When I was a newbie agent, I recommended a lender who spent a lot of time in my office, which was filled with rookies at that time. She answered questions for us and conducted seminars in the office to explain financing. She seemed to know what she was talking about, and she was very likable. So, like the other office newbies, I suggested that any buyers I worked with go to her for their financing.
She was an awful loan officer. She missed details. She screwed up. And I had a number of very unpleasant moments at the settlement table waiting for one of her mistakes to be cleared up. I just thought that financing was really, really hard, and that must be tje primary reason we got paid so much for selling houses and condos. It took a few transactions before I figured it out.
Now, after 30 years in real estate, I've got a great list of lenders who are on my list for three basic reasons:
- Their interest rates are very competitive;
- They answer their phones and return my calls; and
- They don't screw up.
What I didn't know then that I do know now is that when I refer a client to a lender, I do have a lot of leverage. If the loan officer fails to do a superb job for my clients, they will never get another loan from me. And because agents talk a lot about this stuff around the office, there is a chance they won't see another loan from one of my colleagues either.
But if you go with a lender or loan officer I don't know from Adam, there is a strong likelihood that, if something does go wrong, I will have no leverage whatsoever. He knows he's unlikely to get any more referrals from me or my office down the line, so keeping me, or you, happy isn't necessarily at the top of his list.
So my advice?
If you trust your agent, trust her lender recommendations.
If you are planning a move to or from the Washington metropolitan area, I can help. I am licensed in DC, Maryland and Virginia. Please contact me any time at:
Patricia Kennedy, firstname.lastname@example.org, or call 202-549-5167