I have been a consultant / mortgage broker for 30 plus years and as a developer i began to do in house financing. I have never been comfortable with this. My reasons are that agents don't really need to know your financial information. When i grew up your s.s.# was private and only the people had it that you chose to give it too. In the late 70's they began to allow agents and landlords to pull credits, many people were blocked from homes because many of these professional were out of their line of work.. You can take a test in many states and get a brokers license and your computer does all the work. It takes years to learn and continual education to keep up on the changing mortgage / banking industry. Therefore you can't possibly know everything as an agent & mortgage ! If we keep the process simple ! We would not have a quarter of the problems that we have encountered this past year.
This is the process: ( a )The agent show the home and write the contract ,
( b ) the client chose their own lender & attorney, (close)
Everybody live happily ever after ! No law suits, more business !!!!!

I have to agree with David. I really wish I had been the mortgage professional for some of my clients. I work extremely hard and when I run into a lender that doesn't work as hard or acts like my client isn't important because he has 10 other files on his desk, I tend to get very frustrated. If I were the mortgage professional that would not happen. My client would get answers in a timely fashion. So I think it all boils down to trust. Do you trust your Realtor? Because you are going to pay someone to take care of your loan, it's either your combo Realtor/Mortgage Broker, or another Mortgage Broker. If your Realtor seems to take care of you and you get answers in a timely fashion, my guess is that he/she will be the same way servicing your loan. Remember they don't get paid unless your transaction closes. So it's definitely in their best interest as well as yours to make sure everything goes smoothly!! Just make sure that their dual roles are disclosed!

Good luck!

Jackie

Michelle- I think he can legally go both ways...it's your choice to enlist his services as:
A.) Realtor
B.) Mortgage Rep
C.) Both of the Above
D.) None of the Above

If you choose to use him as an agent and his mortgage rates are competitive (SHOP AROUND) then he will have alot of skin in the game as far as following through and marching the transaction to closing.
Good Luck!

There were quite a few times I had wished I was both, as the mortgage broker I depend on the real estate agent to get some things done if someone is tight on the qualifying. As the agent I have sometimes wished I was the mortgage broker because the Mortgage broker didn't seem to want to put much effort into the transaction.
I don't think that being both hurts you in anyway as long as the person has expierience in both. As an agent he should try to get you a low price on the home so that you will qualify for the mortgage easier. As the Mortgagebroker he will know all important information as it happens. The only problem I see is that the broker and the agent usually work together to get the deal closed, such as the agent calling the broker to ask if the appraisal was ordered, or do we have insurance yet. These are small items but sometimes two people are better than one.

Side note with FHA loans The agent can not be the broker also.

Legaly he can not put his name on both applications to help you, but in reality he can just put his co worker's name on the loan application and share commission with him.

I wouldn't advice to do both with one person. Try to get someone that know loans and then someone that knows real estate to get the best service and protection.

I would advise you to shop around and see what you get offered in terms of interest rate and closing cost and then make your decisions.

Michelle:

In California, being both a real estate and mortgage broker is not illegal, to the best of my knowledge. However it certainly can lead to actions that are not in the best interest of the buyer. When you work with a buyer's agent, they can help you negotiate the best deal possible from the lender and the same time as they negotiate the very best deal for you on your new home. It is a service I provide to my buyers all the time, and often, due to my knowledge of the industry, this benefits my client by a significant amount. For a Broker handling both the loan and the purchase, this is like negotiating against themselves. The only possible loser in this transaction is you.

My recommendation is find a buyer's agent who will have your back and drive a hard bargain for you both with the listing agent on the property and your lender. This should result in a win for you. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com

Hi Michelle, in California, yes:

1) This is possible,
2) Wise (possibly, see caution below),
3) Is not a conflict of interest in my opinion, and
4) Is certainly legal.

My "possibly wise" comment above means that no matter who provides you Real Estate or Financing services you still must perform your due diligence in making sure they are not taking advantage of you (talk with past clients, check their license status at the DRE website http://www2.dre.ca.gov/PublicASP/pplinfo.asp . Having a single person provide both services is really only a conflict of interest if the person has questionable ethics (in which case you don't want to use them for either service). Personally, I have very strong and uncompromising ethics. My decisions and advice are based solely on what is in the best interest of my clients, not me - period.

I use financing as a tool to make sure my clients get the home that meets or exceeds their needs. I can offer lower rates because I can price a loan lower than my financing competition due to the fact I'm being paid on the Real Estate side. This certainly IS in the client’s best interest.

I have made the commitment to be a specialist in Real Estate Sales and Finance; others choose to concentrate on one or the other. I believe I provide a higher level of service and expertise than those who do not obtain this dual skill set, which differentiates me from other service providers.

By the way, Dual-Agency is also legal in CA, but you have to know where the issues are regarding this as well, see:
http://www.trulia.com/voices/Home_Buying/Why_should_I_NOT_us…

Best, Steve

Hey Michelle!

They sure can (at least here in Texas) but if it's their client then they must disclose this fact if they are also handling the loan. Hope that helps!


Jackie

Hi, Michelle:

When I first started in real estate I worked for a mortgage broker. Some of my clients did their loans through him. I, personally, prefer not to do in-house but it is done everyday.