Can Realtors Recommend Lenders?

Real estate agents often hand out lists of recommended mortgage lenders.

An agent can’t survive in the real estate business without a good mortgage lender or two to refer.

In fact, buyers often don’t know which they should do first—select a mortgage lender or hire a real estate agent.

Why do Realtors recommend lenders?

Some agents choose their preferred lenders because they get deals closed quickly and reliably. That’s also good for buyers, but the missing element in this equation is the loan cost. The in-house lender may feel that they have you “buttoned up” as a customer. They may feel they no competition for your business.

How lenders can help Realtors?

Realtors and lenders may work in the same industry, but they’re anything but competition.

  • Increased business.
  • Thorough prequalification.
  • Fast prequalification.
  • Marketing support.
  • Proven track record and reputation.
  • Going the extra mile.

Should I find a realtor or lender first?

Start with a Mortgage Lender to make budgeting easier.

When it comes to buying a home, it’s natural to think of selecting a Realtor first. According to research from the National Association of Realtors, 44% of homebuyers begin by looking at properties, while another 17% goes directly to a real estate agent.

What questions should a Realtor ask a lender?

5 Questions All Listing Agents Should Ask Lender’s About The Buyer’s Pre-Qualifications

  1. Will the Credit Report That The Buyer Has Obtained Be Good At Least Through The Proposed Closing Date?
  2. Are Any Third Party Pre-Qualifications Required Or Is That Handled In-House?

Do Realtors get kickbacks from lenders?

Do Agents Receive Kickbacks? It’s against RESPA rules for agents to receive kickbacks for referrals to mortgage lenders. A lender can’t reward a real estate agent for sending business its way. The remainder are either federal FHA loans or VA, so RESPA applies to just about every mortgage loan.

Is it better to get a home loan from a bank or lender?

Unlike a mortgage “broker,” the mortgage company still closes and funds the loan directly. Because these companies only service mortgage loans, they can streamline their process much better than a bank. This is a great advantage, meaning your loan can close quicker.

Do Realtors get referral fees from lenders?

When a real estate agent or builder sends a borrower to a lender and receives something of value in exchange, the lender is the recipient, and the benefit provided to the agent is the referral fee.

Do loan officers make more than realtors?

Loan officers work in the financial industry while real estate agents, also known as real estate sales agents, work in sales. Loan officers require more formal postsecondary training, earn a notably higher salary than real estate agents and currently have better job prospects due to a faster job growth rate.

How do Realtors build relationships?

Here are seven simple tips to help mortgage brokers and originators get started building these future referral sources.

  • Be proactive. For Realtors, it is frustrating when they have to contact you to see the status of a file.
  • Be honest.
  • Be accountable.
  • Create value.
  • Look for connections.
  • Do your homework.
  • Be prepared.

Does your realtor know your finances?

A real estate agent never needs to know your salary or your credit score and never needs to see your pay stubs, your tax returns, or your financial statements. Only your lender will ask you such questions and request financial documents.

What to do before contacting a Realtor?

Here are five things you should do before contacting a real estate agent.

  1. Get Pre-approved.
  2. Determine What You Can Afford.
  3. Consider Where You Want to Live.
  4. Visit Homes on Your Own.
  5. Get Rid of Clutter.

How do you pick a good realtor?

How to find a real estate agent

  • Talk to a lender before you hire a real estate agent.
  • Get referrals from your network.
  • Research potential candidates.
  • Interview at least three real estate agents.
  • Request references — and check them.
  • Go with your gut.
  • Take a close look at your contract.