Realtor suggested a lender - are they going to be angry if we use a different lender?

[Anonymous]

Anonymous wrote:Is this post real? You think your realtor would "punish" you?

In my experience, agents recommend people who get the job done. If you go with someone who screws up or doesn't get the job done, it's on you. But you do what you want.

When I bought my first house, my agent's lender screwed up the paperwork so badly it held up our closing. They made mistakes in their favor that took multiple iterations to fix.

The fact that you are intimidated by your realtor means they are going to screw you royally. Most of them are not trustworthy. You need to have an aggressive attitude that they work for you and they better make you happy.

[Anonymous]

Get a quote from them and others and use them to get the Lowest

[Anonymous]

Realtor should not care if you want to go with your own lender because it’s your finances, your call.

When a realtor around here recommends a lender it is usually because it is someone who has a decent rate AND most importantly for the realtor, will stay on top of the transaction, call the listing agent to instill confidence in them on behalf of your offer, and make sure all deadlines are met for appraisal and financing contingencies so all goes smoothly.

I have never heard of a realtor getting a kickback from a lender in this area. Maybe around the holidays you get a plastic water bottle and a note that says thanks for your referrals, but that’s about it.

I realize there are some bad or unethical realtors out there but here are also a lot of good ones.

- former realtor

[Anonymous]

Anonymous wrote:1. Who cares if they get "angry." They work for you. You're the boss, so act like it.

2. You should be getting quotes from 3 lenders in order to haggle them down and make them compete for your business. I'd get a quote from the realtors lender just to see what kind of pricing or relationship discounts they will offer you. Get an offer from DH's bank and then get a 3rd offer from an online lender.

Don't be a pushover.

Agree to get multiple quotes. We did not use our bank for either home purchase or re-financing (just were not as competitive).

[Anonymous]

Anonymous wrote:

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Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

If you think that lenders don't give valuable gifts to realtors that send them business you have no idea what you're talking about. I processed loans for a broker that sent $400 Yeti coolers to 30 agents one year.

that was a fair amount of money for the lender, but $400 is not really that much of a kickback. it's not even cash.

NP. OP needs to get the lowest possible rate. Not the whatever rate offered by the lender that gifts Yeti coolers.

Also, don’t believe the realtors here who tell you that anybody but their broker/lender will mess up the transaction. Or that the transaction will be messed up in the absence of a pre-existing “close working relationship.” Lenders and title lawyers do this multiple times a day and they don’t need their hands held by someone’s realtor.

NP. OP needs a lender who can close on time. Captive lenders can usually close fast. We sold a house and the buyer used a national bank and had to push closing back twice. On the third request we just canceled the contract and ended up selling for a bit more.

So you’re weighing a possible, not likely, delay of a few days or a week against a years at a non-competitive mortgage interest rate.

Sounds like you think closing and getting your commission is more important than saving OP money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

If you think that lenders don't give valuable gifts to realtors that send them business you have no idea what you're talking about. I processed loans for a broker that sent $400 Yeti coolers to 30 agents one year.

that was a fair amount of money for the lender, but $400 is not really that much of a kickback. it's not even cash.

NP. OP needs to get the lowest possible rate. Not the whatever rate offered by the lender that gifts Yeti coolers.

Also, don’t believe the realtors here who tell you that anybody but their broker/lender will mess up the transaction. Or that the transaction will be messed up in the absence of a pre-existing “close working relationship.” Lenders and title lawyers do this multiple times a day and they don’t need their hands held by someone’s realtor.

NP. OP needs a lender who can close on time. Captive lenders can usually close fast. We sold a house and the buyer used a national bank and had to push closing back twice. On the third request we just canceled the contract and ended up selling for a bit more.

So you’re weighing a possible, not likely, delay of a few days or a week against a years at a non-competitive mortgage interest rate.

Sounds like you think closing and getting your commission is more important than saving OP money.

Why do you think a nonbank lender would have a non competitive interest rate? That's one hell of an assumption, and is baseless. And I wouldn't discount the importance of closing fast and on time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

If you think that lenders don't give valuable gifts to realtors that send them business you have no idea what you're talking about. I processed loans for a broker that sent $400 Yeti coolers to 30 agents one year.

that was a fair amount of money for the lender, but $400 is not really that much of a kickback. it's not even cash.

NP. OP needs to get the lowest possible rate. Not the whatever rate offered by the lender that gifts Yeti coolers.

Also, don’t believe the realtors here who tell you that anybody but their broker/lender will mess up the transaction. Or that the transaction will be messed up in the absence of a pre-existing “close working relationship.” Lenders and title lawyers do this multiple times a day and they don’t need their hands held by someone’s realtor.

NP. OP needs a lender who can close on time. Captive lenders can usually close fast. We sold a house and the buyer used a national bank and had to push closing back twice. On the third request we just canceled the contract and ended up selling for a bit more.

So you’re weighing a possible, not likely, delay of a few days or a week against a years at a non-competitive mortgage interest rate.

Sounds like you think closing and getting your commission is more important than saving OP money.

Why do you think a nonbank lender would have a non competitive interest rate? That's one hell of an assumption, and is baseless. And I wouldn't discount the importance of closing fast and on time.

OP needs the lowest rate, not just a “competitive” rate. Small basis point differences can really add up on a large mortgage over time. Geez.

Yes, closing fast is good. But this chicken little stuff about how only the realtors’ pals can close fast is self-serving nonsense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

If you think that lenders don't give valuable gifts to realtors that send them business you have no idea what you're talking about. I processed loans for a broker that sent $400 Yeti coolers to 30 agents one year.

that was a fair amount of money for the lender, but $400 is not really that much of a kickback. it's not even cash.

NP. OP needs to get the lowest possible rate. Not the whatever rate offered by the lender that gifts Yeti coolers.

Also, don’t believe the realtors here who tell you that anybody but their broker/lender will mess up the transaction. Or that the transaction will be messed up in the absence of a pre-existing “close working relationship.” Lenders and title lawyers do this multiple times a day and they don’t need their hands held by someone’s realtor.

NP. OP needs a lender who can close on time. Captive lenders can usually close fast. We sold a house and the buyer used a national bank and had to push closing back twice. On the third request we just canceled the contract and ended up selling for a bit more.

So you’re weighing a possible, not likely, delay of a few days or a week against a years at a non-competitive mortgage interest rate.

Sounds like you think closing and getting your commission is more important than saving OP money.

Why do you think a nonbank lender would have a non competitive interest rate? That's one hell of an assumption, and is baseless. And I wouldn't discount the importance of closing fast and on time.

OP needs the lowest rate, not just a “competitive” rate. Small basis point differences can really add up on a large mortgage over time. Geez.

Yes, closing fast is good. But this chicken little stuff about how only the realtors’ pals can close fast is self-serving nonsense.

Ffs. You're playing in a world of what ifs. Why do you assume that a nonbank lender is offering worse rates than a large bank. In general, the reverse is true.

No one said only a realtors pal can close fast. It's undeniably true that nonbank lenders can close faster than large banks.

PS I don't care about realtors, but I do work in banking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

If you think that lenders don't give valuable gifts to realtors that send them business you have no idea what you're talking about. I processed loans for a broker that sent $400 Yeti coolers to 30 agents one year.

that was a fair amount of money for the lender, but $400 is not really that much of a kickback. it's not even cash.

NP. OP needs to get the lowest possible rate. Not the whatever rate offered by the lender that gifts Yeti coolers.

Also, don’t believe the realtors here who tell you that anybody but their broker/lender will mess up the transaction. Or that the transaction will be messed up in the absence of a pre-existing “close working relationship.” Lenders and title lawyers do this multiple times a day and they don’t need their hands held by someone’s realtor.

NP. OP needs a lender who can close on time. Captive lenders can usually close fast. We sold a house and the buyer used a national bank and had to push closing back twice. On the third request we just canceled the contract and ended up selling for a bit more.

So you’re weighing a possible, not likely, delay of a few days or a week against a years at a non-competitive mortgage interest rate.

Sounds like you think closing and getting your commission is more important than saving OP money.

Why do you think a nonbank lender would have a non competitive interest rate? That's one hell of an assumption, and is baseless. And I wouldn't discount the importance of closing fast and on time.

OP needs the lowest rate, not just a “competitive” rate. Small basis point differences can really add up on a large mortgage over time. Geez.

Yes, closing fast is good. But this chicken little stuff about how only the realtors’ pals can close fast is self-serving nonsense.

Ffs. You're playing in a world of what ifs. Why do you assume that a nonbank lender is offering worse rates than a large bank. In general, the reverse is true.

No one said only a realtors pal can close fast. It's undeniably true that nonbank lenders can close faster than large banks.

PS I don't care about realtors, but I do work in banking.

FFS It wasn’t a bank vs nonbank thing. It was the realtor’s pal vs. EVERYBODY else.

And yes, a realtor or two here DID warn against closing with anybody besides their pal because of the alleged risk of delays. Re-read the thread.

I didn’t assume or claim that the realtor’s pal can’t offer “low” rates. I’m challenging the assumption that you need to focus on the time to closing at the potential expense of getting the LOWEST rate, because the LOWEST rate may not come from the realtor’s pal.

[Anonymous]

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

+1 Also they work for you OP, not the other way around.

[Anonymous]

Anonymous wrote:Realtor gets the commission regardless of the lender. They don't really care.

Of course but the agent wants you using a lender who is competent, will get the job done, and will meet deadlines. Why they recommend good lenders not bc they get a kickback which is so often said on this site. That's simply false.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

What?

Posted it it because I know people in the business -- it is absolutely not false at all. Realtors get commissions when buyers go with their preferred lenders.

You are totally wrong about that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They get a kickback from their preferred mortgage lender. Just go with your own bank. Who cares if they are "mad"? It's business.

Please refrain from posting anymore if you are going to make false statements like this.

What?

Posted it it because I know people in the business -- it is absolutely not false at all. Realtors get commissions when buyers go with their preferred lenders.

PP here: Oh, and yes, it's illegal. But yes, it happens all the time.

It does not. You have no idea what you are talking about.

[Anonymous]

Anonymous wrote:I've seen a payment to the realtor listed transparently in the mortgage brokers' fees.

Bullshit. Check out RESPA.

[Anonymous]

It is illegal. People are always saying agents get kickbacks. You may not like us, but we don't get kickbacks... unless we are scum and doing something illegal. I am sure there are agents like that. However, there are also many agents that practice with integrity and our clients' best interests in mind.

Back to the original question. Your agent should certainly not be mad that you want to use a different lender. That's well within your rights and you should be shopping around for the best rate and loan product to meet your needs. That being said, let your agent know who you are using so they can talk to the lender and build a good working relationship with them. They will also want to know how quickly they can process the loan, do an appraisal, how responsive they are (even after hours/on weekends), etc.

I usually give my clients 3 or 4 lender names, from various small local lenders that are well-regarded in the industry. If they choose to use them, what I get out of the deal is reassurance that the lender knows what s/he is doing and will get the loan done as needed. We may get invited to a lender happy hour or get some basic swag like a pen, but that is it. Nothing more than peace of mind, really, is in it for me. It's the same for recommending settlement companies, although some agents have bought into some title companies and are actually "affiliated businesses. In that case, they are required to get clients to sign a specific disclosure. All of this is via RESPA, as stated above. https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/