Lend Me a Hand: The Lender/Agent Dynamic

There are a lot of moving parts in a real estate transaction. The lender plays a pivotal role in every deal. After all, your client needs money to buy the house. A good lender should be your advocate because you both share the same client and are working in concert toward a common goal. It is best to find a loan officer who knows the industry the way you do. 

• Shopping local isn’t just for organic produce. Before working with a local lender, ensure they know the climate of the market and are well versed in currently available programs. There may be incentives for first-time homebuyers or grants reserved exclusively for certain cities. For instance, a client of mine had been working with a large, national bank. They felt comfortable because they have always used the bank, so they used the bank for their pre-approval. After doing some homework on the benefits of shopping for a loan, my clients consulted a mortgage company. Through a local lender in town, they were able to secure over $7k in down payment assistance money for their home that would not have been mentioned otherwise. Why? The national bank was unaware that such loan programs existed in these communities. A simple phone call gave them not only a better interest rate but the ability to give themselves a nice financial cushion. Should they want to head to Lowe’s after closing and deck out their new digs, they can now afford it. 

• If you are a new agent, talk to the established agents in your office and find out who they use for lending. A simple email introduction or grabbing a cup of coffee can help you better understand who could be involved in your client’s transactions. If you find the lender to be braggadocios or if they have that “used car salesman” vibe, they probably will not be a good fit for your client. Make certain communication will be open and you are dealing with an experienced straight shooter on the financial side. You must be kept abreast of each step in the lending process, even if it involves bad news. While staying in your own lane, you must maintain a delicate balance in the lender/agent relationship. Financial information is sensitive, and it is best to let the lender navigate that avenue. Make sure you can feel confident that this person will have your client’s best interest at heart until you arrive at the closing table. 

• Reviews can help you buy a car, a new item on Amazon, and select a qualified mortgage professional. If you read that clients have had positive experiences using home finance expert, it is a solid indicator that they will provide quality service to your client. Keep in mind, a review is no substitute for your own instinct. In due diligence, it would be best practice to contact the lender and introduce yourself. Tell them you have heard good things and get a feel for how they work. Many lenders utilize several assistants and processors throughout the transaction. This is understandable given the volume and amount of financial documents that are required for review. In terms of expectations, make sure you and the lender are on the same page (pun intended). There can be many surprises along the way from title searches to home inspections. The last surprise you want is a lender who hasn’t kept up on their side of the deal. 

If you deem them worthy, a good lender will be working with you for the life of your real estate career. But only if you deem them worthy of it. There is a lot of trust involved in this relationship with your clients and, conversely, the agents themselves. They say “it takes a village,” so it is best to have a few trusted mortgage experts in your corner and let your client decide who is the best fit for them. This may not only be who gives the best interest rate but also who is the most willing to answer their questions, take their calls, and give them the personalized service they deserve. The lender you recommend to your clients is a direct reflection on you, the agent. Choose wisely.

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