Is it time for your real estate company to reconsider your strategic mortgage lending partnerships? Contact us at Mortgage Capital Solutions, Inc. to learn more about our strategic partnership program. Let’s discuss how we can develop a customized program around your firm in ways that are fully compliant with the CFBP’s new rules. Also is your current lender relationship and agreements RESPA compliant? Call our REALTOR marketing specialist today! 1-800-887-5708 OR or fill out the information.
Why do realtors partner Mortgage Banking/Broker Firms?
Here are some answers to this question from some of our most trusted Realtor partners and customers;
- REAL ESTATE AGENT, WASHINGTON STATE; “It’s very common and typical that real estate agents or their Brokers partner with Mortgage companies either because they have had a previous relationship or had a good experience in working together. Remember good communication is the key. A mortgage broker and real estate agent who have had a good communication system and have worked well together in the past can avoid problems that may arise when there’s a breakdown in communication between two entities”. It’s a great idea to work with a mortgage firm your real estate agent or Broker partners with. There is a reason the real estate agent trusts and prefers to work with their mortgage firm, and their solid working relationship with the lender can only benefit the home buyer”.
- Previous customer/home buyer, Michigan; “Realtors partner with competent Mortgage Brokers to ensure that the deal gets done within the escrow timelines. Many consumers get letters of pre approval from Depository Institutions such as Bank of America, Wells Fargo etc. not knowing that these Lending Institutions can rarely meet the deadline for closing the deal (sometimes taking 6 months to a year). Therefore, Sellers Agents often do not entertain offers from potential buyers with these Lenders . A good Mortgage Broker will ensure that the deal is ready to fund at the closing table on the predetermined closing date. There is no downside to using a (competent) Realtors recommended Mortgage Broker”.
- Real Estate Agent; Pleasanton, CA; “Realtor’s trust their preferred lender and has probably worked well with them and trusts that particular lender to manage the mortgage process and get your loan closed on time. (mortgages don’t just magically appear, they touch about 20 different people/disciplines throughout the 30 day process) Maybe they don’t always have the absolute cut-rate lowest interest rate, but your Realtor is more worried about closing on time with a lender they can rely upon versus a lender they don’t know and consequently, don’t know how they work when the process becomes difficult or bottlenecks occur. Additionally, if the lender your Realtor recommended was notoriously bad and can’t get loans closed, then the Realtor wouldn’t be making any money from commissions as they are only paid when a loan funds and the transaction closes. Intuitively, you would think that a Realtor would only recommend a ‘good’ lender based on that reason alone, wouldn’t you”?
- strong>Real Estate Broker, Allen, TX“I believe it is all about control, Having a relationship with the lender is critical to closing the loan on time. Given that the current Mortgage crisis has made the approval process unstable it is more important than ever to have relationships with lenders. The industry standard for loans is now at 40 days, not that long ago you could close a loan in 14 days. The unstable environment of the loan industry has caused many lenders to close their doors and or change their programs. The worst thing that often happens is a client is pre-approved only to find out that underwriting has denied the loan. Having a relationship with a lender will deter some of these potential pitfalls in acquiring a loan”.
- Real Estate Agent, Brighton, Michigan“Benefits;Agents usually pick a partner they can trust to meet deadlines and take care of their clientsAgents usually pick a partner that continuously offers competitive ratesThe Agent and Mortgage partner are familiar with each other and their processes
If something “bad” happens, you can always turn to your real estate agent if the lender isn’t meeting your needs. In most cases, using an agent’s preferred lender is a good idea. Agents wouldn’t use a lender or broker that doesn’t exceed their expectations and offer competitive lending programs and rates. A good team can help make your buying experience that much better”.
- Real Estate Agent, Gwinnett County, GA “Understand that you have the right to use any Mortgage Lender you choose. I know that the benefit for me, when my clients use our partner, is that I know how that lender works and it helps me to be assured that the process will run smoothly. I also know that they (my preferred lender) will be timely and will not “drag their feet which could put my clients deposit/earnest money at risk. No one can force you to use their partner lender, but in negotiating the contract they can ask for you to be pre-approved with their lender…this again will give them the peace of mind that you are, in fact, able to be approved for your loan.I hope that this helps shed a little light”.
WHY USE A REAL ESTATE AGENT?
There’s good reason about 80 percent of homes are sold with the help of a real estate agent, according to the National Association of REALTORS®. Here are some of the ways a REALTOR® can help simplify the process:
Setting the right price. One of the first things a real estate agent presents to a seller is a competitive market analysis (CMA) or ‘comps’. The CMA is based on current market trends and recent sales in a given area and is the basis for the agent’s recommended list price. Setting the right price is crucial in home sales, because an inflated asking price can turn away buyers. And according to the National Association of REALTORS®, sellers who use a real estate agent receive on average 20 percent more for their homes than those who sell their own homes.
Neighborhood knowledge. A REALTOR® has a better understanding of what buyers can get for their money in the neighborhood they want to buy into. He or she should also have important information about the neighborhoods, including noise levels, schools, shopping, property taxes and demographics. For sellers, these details are equally important, as they affect the value and marketability of a home.
Marketing expertise. Along with a CMA, a real estate agent typically will present sellers with a marketing plan that details what he or she will do to sell the home. This may include coordinating open houses, writing and placing ads in various media, printing and distributing brochures and showing your house to potential buyers. Agents also have exclusive access to two resources that are often critical to selling a home: other agents and the Multiple Listing Service (MLS).
The MLS and the REALTOR®’s contacts. The multiple listing service, or MLS, is a database of all the homes for sale by real estate agents in a particular region. Once a home is listed, information about it can be accessed by all the agents in the area and matched to buyers: in effect, your home is being sold by not one person, but by hundreds. The REALTOR® may also arrange an open house just for real estate agents. In turn, these agents recommend the house to their buyers. A study by the National Association of REALTORS® revealed that 82 percent of homes are sold through an agent’s contacts.
Objectivity. When selling, a real estate agent can provide an unemotional view of the home and what needs to be added or subtracted to make it more appealing to buyers. Buyers who choose to enlist a buyer’s agent benefit from the agent’s responsibility to disclose potential drawbacks and flaws of a home, something an owner has little incentive to do.
Efficiency. Buyers with buyers’ agents will only tour houses that fit their budget and needs, because their REALTORS® will eliminate unsuitable homes. Buyers’ agents help sellers, too, by only showing houses to qualified buyers. This means less chance of a mad rush to clean the house and get the kids out the door for people who are just looking.
Drafting skills. REALTORS® help draft contracts and should know the information that must be included in the documents. They can also advise on what stipulations you should make in the contract — items that should remain in the house at closing, for example.
Negotiation and closing assistance. A real estate agent can provide advice to both buyers and sellers about whether to accept or modify an offer or counter-offer. Once an offer has been accepted, the REALTOR® may arrange for a home inspector, financing, a title search and a real estate lawyer, as well as ensure that all repairs and stipulations in the contract are complete.