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Hi,
We are looking to buy a pre owned home by this summer. Our agent has recommended a lender for us to use. Do agents generally get a "kick back" for referrals? How do i know if this lender is going to get us the best deal or do they differ in fees? Sorry i don't even know what to ask because i don't know anything about this business....any educated advice is very appreciated!
Thanks!
It is illegal for Realtors to get kickbacks from lenders, inspectors, handymen, etc.
Most of us recommend those we have worked with that we know will do the best job for our clients.
Yes, lender fees and rates DO differ. It doesn't hurt to get pre qualified with one lender but after you are under contract, you can check rates and fees with more than one lender. Just make sure you are comparing rates AND fees, together.
Before you sign any paperwork (buyer agency) with your Realtor, make sure you are happy with your Realtor and can trust that Realtor as they are going to advise you on many things and you should feel good enough about them that you don't have to worry if they are trying to help you or just trying to help themselves.
One tip as you contact potential lenders: If it's hard to get a hold of someone before they have your business, it will probably be hard to get a hold of them when you a supposed to close the next day and haven't heard anything for two weeks.
On a recent refi I paid higher fees for someone who was easy to get in touch with, answered emails quickly, and had everything ready on time for the closing. The lack of stress was worth the extra $.
Hi,
We are looking to buy a pre owned home by this summer. Our agent has recommended a lender for us to use. Do agents generally get a "kick back" for referrals? How do i know if this lender is going to get us the best deal or do they differ in fees? Sorry i don't even know what to ask because i don't know anything about this business....any educated advice is very appreciated!
Thanks!
A good mortgage lender will be thorough with your preapproval, because a good lender will close the loan for any buyer he preapproves.
A good mortgage lender will continually keep you updated as your loan moves through processing and underwriting.
A good mortgage lender will have the loan package to the closing attorney in time to get you an accurate, approved settlement statement in time for closing.
If there are any hitches, the lender will communicate clearly regarding the issue and/or delay.
The only consideration an agent gets is confidence that the competent lender will take good care of the buyer, with good rates and fees, great explanation of the process, and a smooth path from application to closing.
Experienced agents know the lenders who lie to clients, tell them all is well, and pull the plug at the last minute. They are out there.
Last edited by MikeJaquish; 02-21-2013 at 08:22 PM..
One tip as you contact potential lenders: If it's hard to get a hold of someone before they have your business, it will probably be hard to get a hold of them when you a supposed to close the next day and haven't heard anything for two weeks.
On a recent refi I paid higher fees for someone who was easy to get in touch with, answered emails quickly, and had everything ready on time for the closing. The lack of stress was worth the extra $.
flamtap
Another reason that your Realtor's recommendation may be worthwhile...
The lenders that I refer my clients to know that if they don't answer my client's calls and emails and we close late due to them, it may be the last time I refer any business to them . They like to keep their favorite Realtors happy!
Hi,
We are looking to buy a pre owned home by this summer. Our agent has recommended a lender for us to use. Do agents generally get a "kick back" for referrals? How do i know if this lender is going to get us the best deal or do they differ in fees? Sorry i don't even know what to ask because i don't know anything about this business....any educated advice is very appreciated!
Thanks!
Bumping this old post. So did you find any good mortgage agent if you could share? I am under contract and in the same boat. The one that my agent mentioned looks good but that he has a constant $1000 fees (origination ~850 & app fee of 150 together).
we actually had a horrible experience with the lender our agent recommended and almost lost our home due to his negligence... amazes me how people just don't do their jobs!!!!!!!!!!!!.... (our agent has discontinued using him now) we ended up using state employees credit union and they were fabulous!
If you are buying new construction you might want to investigate using the lender the builer suggests that way if there is a delay it falls back on them...I am sure the real estate agents on these forums could chime in and give you some referrals...good luck!
So I have compared offers from 3 mortgage lenders that are based local to RDU area and others that are located in Charlotte (Roundpoint) and (Certus Bank mortgage).
I notice that the Charlotte offers are noticeably better in terms of "lender credit" they claim to offer (rate, term etc being the same). Can they be inflating the lender credit just get me in the door?
What's the catch with Charlotte based agents?
Last edited by gcretro; 11-25-2013 at 08:49 PM..
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. They like to keep their favorite Realtors happy! 
