When beginning a home buying process, what should come first for the purchaser: a realtor or a lender? The answer isn’t as cut and dry as you might think, but understanding in which order you should be pursuing these dialogues is crucial to ensuring a smooth home purchasing process. This is where realtor Kelsey Charles with Real Broker, LLC, can offer great advice and insight.
As a real estate agent, nothing is more satisfying than when a transaction goes smoothly. While you’re working for the homebuyer or the seller, you are also working with other service providers – like lenders – to move toward that common goal of closing on the property. When it comes to the lender-realtor relationship, few dynamics are more important, and being able to convey that importance to the homebuyers or sellers you work with is just as vital.
How Realtors and Lenders Work Together
When I offered on my first house, I was terrified of an unscrupulous agent referring me to a banker who would rip me off and give a piece to my agent, despite knowing that anyone who did that would be dragged in front of the state real estate commission so fast their head would spin. That said, the average homebuyer may not know this, and imparting this to them is really important as a starting point.
Then comes being able to refer your clients to someone you trust, and who you know will be able to give your clients a mortgage to pay for their house. While I, as an agent, have developed relationships with loan officers who have a record of working well with my clients, the lender needs me to refer clients. And I need the lender to treat them well if I want to stay in business.
When a real estate agent and lender work together, they are an invaluable asset and resource for their client. You both are in service-based businesses with a shared goal – getting your client into their new home as quickly and effortlessly as possible – and that shared mindset should broker a great business relationship. It’s a win-win-win for you, the lender, and the client!
For most clients, this is music to their ears; they don’t know which lender they should work with and ask their real estate agent first, or they may start with a lender who can refer them to a real estate agent. As an agent, encourage your clients to do their own lending research, but suggest lenders you trust and have dealt with in the past for successful transactions. Give your client the rundown on what to expect during each financing process, and ensure they have all the information they need to make the right decision.
What Realtors Want From Lenders
For real estate agents, there are a myriad of factors that make up a solid lender-agent relationship. Whether you’re entering a new market, just starting out, or looking to shore up some of those existing working relationships, here are some things you should expect from any lender with which you plan to build a strong professional relationship.
Service- and Transparency-Oriented Mindset
As mentioned above, lenders are in the business of client service. Exceptional customer service and communication skills should be a nonnegotiable when it comes to working with lenders; after all, if you recommend a lender that lacks this, your client may think less of you and less of the lender, and that’s not ideal.
In the same vein, ensuring that lenders are transparent about every part of the process is paramount. While there may be some clients who don’t want to know much about how the sausage is made, so to speak, most clients do want to understand the lending process and all the ins and outs of this big, life-changing purchase. A lender who isn’t willing to explain and answer questions should raise all kinds of red flags.
Reliable, Fast Pre-Approvals
Real estate agents typically use pre-approvals as a guide for figuring out which properties to show clients, so if you can’t trust the pre-approvals a lender gives out, what’s the point? Expect the lenders you work with to thoroughly verify and ensure their pre-approvals are accurate so you can get to work connecting clients with their dream homes worry-free.
Speed should also come into play here; especially during the busy season, you may need pre-approvals fairly quickly to put in an offer on a desirable property. As is the nature of real estate, you should expect to have access to the lender on weekends, and if they balk at that, steer clear. Clients typically look at homes on the weekends, and may want to put in offers right after, and your lender relationships should be built on that understanding.
Marketing Support
Since most home purchasers seek out real estate agents and lenders around the same time, look at advertising your services together to give one another a little boost. A lender can provide you with advertising material like open house flyers and brochures that can explain how home financing works. Just note that when you’re co-marketing, your efforts may be subject to the Real Estate Settlement Procedures Act.
As a real estate agent, the connection you have with lenders are some of the most important you can cultivate. Ensuring great working relationships that support clients and put them at ease during an already-stressful process is paramount to your success as a real estate agent – and a great lender will do nothing but support you in that endeavor.
About Kelsey Charles, CRS, MRP, CLHMS
Kelsey Charles works with veterans and second-home clients to buy and sell homes in Hawaii. Since becoming a real estate agent in 2019, she has sold over $55 million worth of lucrative real estate investments. For more please visit her website, https://kelseyhawaii.com/
