On the contrary, by assigning a single contact to take charge of both the real estate and mortgage transactions together, you may realize substantial savings, simplify the entire process, and receive meaningful information with great service.
Many terrific agents focus exclusively on the real estate component, referring clients to tried and true lenders. No worries there. Meantime, other agent-only professionals lean on specialists to handle things â€œthat fall outside their scopeâ€â€¦ out of an insecurity stemming from profound ignorance. This is understandable. Their entire livelihood depends upon the outcome of an integral component, over which they have no influence.
But I would challenge anyone considering this notion to ask this latter type of agentâ€¦ how many of their deals fall apart due to financing? I would venture to guess many.
The number one reason deals fall out of escrow is because the loan falls out. Is it ethical to hide behind ignorance to move unqualified buyers through a process that raises false hopes? Or put deposits at risk? Or spend money on wasted inspections? Or cause financial hardship to sellers, other agents, and support professionals? While the agent, per se, is not at faultâ€¦ how could it be construed as unethical to strip away the ignorance that could prevent this outcome?
Competent loan officers have a ZERO fallout rate due to financingâ€¦ because they help Buyers underwrite "approvability", and more importantlyâ€¦ affordabilityâ€¦ even before they look at properties.
As a Buyer, would you prefer your agent to be removed from aspects that are beyond their control... or have them step up and be accountable for getting your job done right? Which agent would seem better positioned to deliver authentic value?
To do it right, executing both real estate and mortgage transactions together, takes a great system, and a great support staff. But consider the value it creates where the rubber hits the road.
Just ask the agent-only professional how that new car payment will impact your credit approvalâ€¦ or the difference in pricing between conforming and agency jumbo loan limitsâ€¦ or what the current limits even areâ€¦ or how your monthly payment is affected when rates tick up right as you are about to make an offer in a competitive bidding situation on a Saturday afternoon. And when the agent defers to some great loan officer, note how long it takes to get a reply, since banking hours donâ€™t start untilâ€¦ wellâ€¦ when this property has already gone to escrow.
I have no problem with folks focusing upon a specific segment of an industry. But letâ€™s please not discount great service and acumen out of misguided fear.
What you said is untrue. You could not do both because you have no NMLS license. Having a Broker's license alone no longer enables you to originate mortgages. Only someone who possesses BOTH a DRE and NMLS license could do this.
I am curious why all the agents "advise against" this. Is it because it cuts into your commission? IF someone is license for both and experienced in both I don't know why it would be an issue. There are also plenty of lenders that will allow this. It seems only the people who don't hold both licenses are the ones opposed.
I would use a different mortgage broker or Realtor so that there is no conflict of interest.
Just my 2 cents!
Find a professional in both industries and you will receive the maximum benefits since each field is unique and ever changing. As a mortgage professional I am constantly educating myself to stay ahead of new regulations and product changes to make sure my clients get the proper financing for their transaction. The real estate agents I know do the same thing to stay on top of their game.
Still it's also important that your real estate agent and mortgage broker understand each industry so you have a team effort and a smooth transaction. Many mortgage brokers are licensed by the department of real estate as well as having an NMLS license. In California you will find mortgage professionals licensed by either the California Department of Real Estate (CA-DRE) and/or the California Department of Corporations (CA-DOC) plus their NMLS license.
Most importantly ask family and friends for recommendations and check out reviews on this site or others and then decide who best understands your special requirements.
You have received a lot of food for thought from many here and I wish you every success in moving forward.
Senior Loan Officer
Land Home Financial
And yes, Wayne is right, this excludes FHA originations where this is not allowed.
In any case you want to make sure that the agent you choose has adequate experience to represent you as a Realtor or a mortgage broker. You would not want to use a surgeon who has only performed 4 surgeries...or a mechanic that has only repaired 3 cars.
Don't hesitate to interview several real estate agents and several mortgage brokers. It is important for you to know that you are going to be well represented before you decide to plunk down your hard earned cash :)
You have already received some good answers. Yes it is legal, if disclosed. From my experience a Mortgage Broker or a Real Estate Agent are generally much better at what they do if they focus on one or or the other. Most Brokers for major Agencies will frown on this as well. Not to say that a very gifted talented person could not do both, but in general, it is best to chose an agent and a seperate mortgatge broker. Can we help you with anything else?
Windermere Real Estate SoCAL
That said, some lenders frown on this, and as their own policy may not allow it.
Hope this helps.
Wayne L. Brown
Security National Mortgage Company
NMLS # 343946
Company NMLS 3116