Virginia Beach Home Loans: Your Realtor Said You Should What?!

Your Realtor Said You Should What?!

I commented on a blog and I would like to share my comment with the rest of you and ask you what you all think. I hope the comment was not offensive to the author, but this is something that I feel strongly about. I would be so offended if a Realtor whom is working on the other end of a deal from me recomend that My client seek another lender... That would be my last transaction with that Realtor.

On  the same token I would never bad mouth the fee of a Realtor working on the other end of a deal from me and I would never Steer my client to another Realtor.

The blog that I commented on is Anyone Know Anything About These Mortage Companies? by Judi Barrett and here's

my response:

"Judi, I understand your desire to help your client. The fact is however that it sounds like your client is getting a good deal. I think that you may be better served sticking with the Real Estate portion of the transaction. I mean no offense but if you search rates being offered by Internet companies with no experience with regard to the financing end of the deal, you may well make yourself look bad to your client.

5.75% is a rock bottom price. I wouldn't be worried about getting a better rate in this market, I'd be worried about whether or not the rate being offered is even real. Now in the past few days rates have been very low, and it is possible to be delivering a 5.75% with a 20% down and excellent credit at par or possibly a small buy down depending on the lender.

Regarding Internet companies; Read the fine print at the bottom. The listed rates are based on certain assumptions (such as perfect qualifications) and are contingent upon the upfront fee. For instance, if you go to the ditech website and find the "Rates" page you will see that the higher the fee the lower the rate and the lower the rate the higher the fee. Most Internet companies promise the world and deliver nothing but problems.

I understand shopping for the best deal, but I get a little frustrated with people who are being given the best deal and still think that they can get a better deal based on a bunch of hyped up crap that is fed to them by unscrupulous advertisers.

Also, A note of advice. As a high producing Mortgage Professional in my area I send many many referral's to my Realtor partner's depending on the area they are serving. I would never question the fee of one of my partners or any Realtor whom I'm working with for that matter, and I would never send another deal to a Realtor who questioned my rate or fee. I am the Real Estate financing expert and you are the Real Estate expert, be careful not to confuse the two.

I think that you will be best served by explaining to your client that the market is declining and that he is getting a good deal. It may not be what he is looking to hear, but he will appreciate the honesty."

 

I'd love to hear what you all think about this...

Christopher Ohlsen

37 Boynton Ave

(845) 243-5293 (Office)

(518) 565-0799 (Cell)

www.plattsburghmortgage.net

chris.ohlsen@guaranteedrate.com

 

 

Comment balloon 5 commentsChristopher Ohlsen • January 11 2008 10:12PM

Comments

I had to suggest a buyer seek a different lender when the bank attorney started stalling the process over a very trivial CO on a deck that involved a town which is slow to process and very uncooperative to deal with. All the paperwork was in place for the CO, certified by a structural engineer but the town was saying too bad hold escrow.The bank attorney refused. My clients were the sellers who were about to have the deal on the house they were purcasing killed. The buyers for my clients house were living camping in deploarbale conditions in a one room apartment and evrybody had lost their patience. When we suggested a  new lender the bank attorney finally got off his high horse and agreed to close. Sometimes we have to make threats to move things along. In this case, the buyer's agent, the buyer's attoreny and the buyers were on board - nobody was offended and my suggestion to change lenders was a welcome one.  
Posted by Carol Culkin, Overland Park (Reece & Nichols) over 9 years ago

Outside of making sure my clients are approved, lender recommendations, very general advice and answers to simple questions I stay away from the mortgage business.  I need to focus my attention on the real estate.  So I guess, I agree with you!

I have to comment on questioning fees - I'm ok as long as things are stated up front.  I did have a client's lender try to change the fees at closing - we did question it - he was just trying to see what he could get away with.  The whole loan was pretty weird - but my client was an attorney, his family is prominent in the banking/loan world and I knew better than to argue. 

In response to Carol's comment - we have had cases where the other party come through with a lender recommendation under dire circumstances.  Our inhouse mortgage has done several last minute rescues.  

Posted by Judi Glamb, Associate Broker, ABR (Coldwell Banker Hearthside) over 9 years ago

Carol - I guess when the situation calls for it. I have recommended that my client seek alternative legal advice when an attorney will not get moving on a deal. So I can understand your point and I would not hold it against you for recommending another lender in this case. If the lender is playing games and or there are issues that make it impossible to work with the lender that is one thing, but for a Realtor to give advice on current mortgage rates is quite another.

Judi - I've been around awhile and I've seen that trick before. To recommend in that situation that the buyer walk from the deal and utilize the services of another lender is just sticking up for your client, and is down right good advice. I have noticed that there is a whole lot less bait and switch going on these days because most of those weasels have been forced out of the business. I can agree with trying to prevent your client from being had, but I cannot agree with a Realtor trying to help his/her client get a better .125% interest rate. I see that much of a change in day to day pricing and occasionally on repricing throught the day depending on the market flucuations, so how could someone reasonably expect to secure a much better rate if the shopping process will take a week. By the time they find that .125% if they do, the original lender by that time I'm sure could offer the same if it is a reputable lender. As a mortgage professional, I watch the bond markets, and stock markets, economic releases I have a pretty good idea of where rates are going. If there is a good chance that rates will drop in the near future and we have the time, I will recommend to my clients that they float the rate while I work on the deal until the time is right to lock.

Posted by Christopher Ohlsen (Credit Werx, LLC.) over 9 years ago

Christopher,

I am a professional and sounds like you are a professional. We give professional advice. I agree with you that we need to take care of our client and be courteous to all parties. Sometimes people are too stupid to listen to good professional advice. 

Posted by Mike Frazier, Northwest Tennessee Realtor (Carousel Realty of Dyer County) over 9 years ago
I'm always wary of offers that sound too good to be true, so I have never recommended a client go to the internet for financing. There are several local mortgage providers I know and trust, and I recommend them to clients with confidence.
Posted by Rosario Lewis, GRI, SRES - DDR Realty - Orange County, NY (DDR Realty) over 9 years ago

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