Do Lenders miss the point when working with the Listing Agent?

By
Real Estate Agent with Alameda County - San Leandro, CA.

When we received an offer on a house we have listed, the very first person we contact, even before the seller, is the Loan Officer who provided us with a pre-approval letter. We need to assure the seller that this offer is good, or not so good depending on what we know about the buyer's qualifications from the loan officer's report. 

As frustrating as it is, most loan officers do not want to divulge any information at all! Granted, we know the confidentiality agreement created with his client: the buyer, our buyer now. Some of them refer us to the agent who wrote the offer, The Selling Agent, who in turn does not provide helpful information either. To me this is like... for the next 30-45 days, you will be living in my house... and you don't want to talk to me? All we want to know is how well have you qualified this buyer. The seller will make plans based on what you tell us! So please, talk to us! Give us a fair report, we will help you with extensions when needed if we know what YOU are working on with the buyers loan.

Some of the best reports we have ever had is when the loan officer gives us a good report of his client,"... we have run his credit report, we have verification of funds, his paystufs shows good tenure in his job..." etc, etc. He does not have to give us every detail but the Seller will feel better knowing that there is a good relationship established between the buyer and his lender. If there is a delay the seller will most likely go along with it if he/she knows how easy of difficult the loan is going to be. Surprises at the last  minute is what creates problems for everybody in the transaction, especially when we are led to believe that "all is fine" (that in my book is a red flag)

We all know the consequences of getting a loan officer that does not perform on time because he/she did not do a complete job of properly qualifying the borrower before granting him/her a well-written letter of pre-approval. 

In my inbox I get flyers and brochures from almost every lender in town. We all know how important is to have loyal clients and how much it cost to generate a new one. After 23 years selling real estate in the same area, I have lenders I work with on a regular basis, but I am always open to looking at alternatives and new financing products. 

The day I receive an offer on one of my listings, I began working with a new lender weather I like it or not! Because of the that loan officer can call me daily... for about 30 to 45 days, (the length of the escrow) and I will have to take his/her call. I might be so impressed with this "new Lender" that I might become his/her client. 

Sadly this does not happen, most lenders just want to talk to the Selling Agent, their client. How easy would it be for them to take every opportunity to impress one new Realtor every time there is an escrow open, the Listing Agent should be treated like a new client, you have been given the opportunity to work with a potential new client, why do you ignore him/her? After all, the LA represents the other half of the transaction, the happiness of his client, the Seller is equally as important as the happiness of the loan officer's client, the Buyer. 

Most loan officers I speak to want to tell me how they work, and how good they are. During a transaction the lender can show us how they work, (which is by far more effective of course!) But most lenders just miss that great opportunity to gain a new client. Keep an eye open for the Listing Agents...Do a good job of communicating with him/her about the transaction and you might gain a brand new client.

Posted by

The Realtors In Motion       Antonio & Alexia Cardenas   

                  "The Realtors In Motion" 

         CRS, GRI, E-Pro Certified. SFR (Short Sales, Forclosure Resource) Serving the east shores of the San Francisco Bay, Alameda county: specially the following cities: Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin.

                  Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

                     Call us, We'll come and TANGO with you!

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Rainer
2,897
Tiffany Landis
Tacoma, WA

My team has set up a system where we fax, email or call both agents, the buyer and whomever else is involved letting them know ever step, pre-approval, appraisal ordered, appraisal received, etc etc...and so far its working out great.

Sep 02, 2008 10:38 PM #1
Rainmaker
84,834
Darren Stewart
Mortgage Investment Services Corporation - Broken Arrow, OK

Our team at OakStar provides a preapproval letter to the borrower - since this goes to the borrower it has more details that line out exactly what the client has done - and where we are in the process, it also has passed through an underwriter, just did this one today and the realtor had the preapproval letter within 2 hours of the offer being written so it could go with the offer.  Timing is everything choreography is 80 percent of the loan officers job, making sure that things happen and happen on time and we plan on smooth closings by delivering funds and docs a full 24 hours prior to close.

Darren

Sep 02, 2008 10:42 PM #2
Rainer
18,506
Pete Stanley
Coldwell Banker Residential, Prescott AZ. - Prescott Valley, AZ
TEAM STANLEY, PRESCOTT, ARIZONA

You are so right about loan officers and the qualifications.  IF POSSIBLE, go the next step and check out the qualifications and reputation of the Mortgage company or person.  How many times have we had delays and problems and chnnges that Mortgage Comanies throw in at you and do not even keep you informed. 

Internet lending had created a huge question in our mind, we have never gone to the closing table of one of the internet companies and not found late changes, junk fees, rate locks not honored and etc.

Check out the reputaion of the lender and do it for both sides.  This week was very frustrating as a lender made a last minute switch to FHA and did not tell our buyer the delays involved, nor did they tell us of the switch, so our buyer spent the Labor Day Weekend in a hotel with is truck loaded with his furniture, because the lender blew the closing date by 4 days.

Beware of todays lenders, they have the Feds looking over the shoulder and they are afraid to dot an i without checking it 4 times, so things have really slowed down. 

Team Stanley

www.elliscountymoves.com

Sep 02, 2008 10:43 PM #3
Rainer
16,947
Chris Canzano
Villa Realty Group, Inc. - Cape Coral, FL
Billion Dollar Broker - Cape Coral, FL

every lender is different but cant say I disagree with you

Sep 02, 2008 10:46 PM #4
Rainmaker
134,225
Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

6 months ago we could get most loans closed in about 20 days.  Not it is averaging about 40 days.  Very frustrating.  But communication to all parties is key and can sure make the process less painful.

Sep 02, 2008 11:17 PM #5
Rainer
74,713
Dan Hartman
Province Mortgage Associates - NMLS #2861 - Providence, RI

Antonio, Alexis,

You have a great point there, and one I've been implementing for some time now.  I relish having my client's offer accepted by seller represented by a Realtor I've not met before, as i gives me the chance to get out there and shine in front of someone new.  THanks for highlighting this!

Dan

Sep 09, 2008 05:14 PM #6
Anonymous
Anonymous
Anonymous

I appreciate this post. I am going to make a point of calling the listing agent 3-5 times during the course of an escrow. That way, when I meet them face to face (and I will) they will already know how I go about my business.

Sep 09, 2008 06:30 PM #7
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Rainmaker
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Antonio & Alexia Cardenas

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