Thatâ€™s a clear violation of the code of ethics.
As stated below by Laura, itâ€™s also a conflict of interest for a loan broker to provide your loan AND act as your Realtor â€“ while it can make the process easier for the broker, it also removes some of the protections you have as a buyer when working with both a realtor and separate loan broker.
My recommendation? Use a competent loan broker for the loan and the realtor of your choosing for the purchase.
it is your choice...you can use the same person to be your loan broker and your real estate broker, or you can use one person to be your loan broker and a different person to be your real estate broker...
BUYER CASH REBATE 50%-60% / SELLER DISCOUNT 50%
Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
Web Reference: http://americarealtyonline.com/
I have been a banker, broker and a correspondent lender, but now have all three where I work which helps my client greatly.
I can provide funding to any of the loans we underwrite for (banker/correspondent) which helps when it comes time to fund the loan and underwriting for a majority of our lenders gives my clients nearly all the choices they will need when it comes to the loan they want. If not, I am able to broker the loan to help meet their needs.
It is completely fair and right to let the realtor know that you truly appreciate their realtor skills but that you have a lender of your choice that you want to work with. Don't be shy - this is the biggest purchase of your life and you have the right to the best representation from both sides.
Ask him why, given that you already have a Realtor with whom you have a satisfactory relationship, you should dump that Realtor to use this loan broker as your real estate agent.
The answer may help you to decide who this person is really working for â€“ you or himself.
If somebody is wearing two hats they usually know each half ass. They don't excel at one.
I am Realtor, I specialize in selling residential real estate. Yes, I know about loans but I know enough to help my clients buy homes.
I also look out for them. Make sure the loan they get is best for them and they are not being charged to much. I also make sure the lender is performing per the contract and staying on task.
I strongly advise you choose one to be your Realtor and one to be your lender.
But no law requires you to stay with another that you have not signed a contract with. You are free to go where you please - but I see no reason to do that in this case.
You've been given good advice leaning toward the importance of taking a course of action that will protect you from a "conflict of interest" by using one agent for two very different services. We strongly agree that you should not use the same agent.
Let's look at this from a practical perspective and read between the lines. You have an agent that appears to be wearing two hats at the same time. A simple question of which is his day job and which is his night job? Does he have a specialty? Which one is his full time position? What are his other jobs?
The bottom line is that the level of service you receive could be compromised.....there is risk involved when considering a real estate agent that is less than full time. Those of us that have been in the business a while can truly see the differenct between full and part time agents.
If you are OK with receiving less than full service......go for it, but you deserve much more! Since you met this individual as a loan specialist, the best course of action may be to leave it at that.
There is no reason why he should "take offense" to that, as it's perfectly understandable that you are already working with someone and have developed a good relationship with that person.
Lending is complicated. Selling a property is complicated. Doing both could be considered a confilict of interest (which I cannot see why it would not be considered that).
Lenders are specialists.
Real estate agents are specialists.
Give yourself the best of both!
Banks, loan companies, and mortgage brokers have been changing their rules constantly. The one who was offering the best loan may no longer be doing that. It would also be rare that the best real estate agent is also able to provide the best loan. If you are in a competitive bidding situation for a property, being pre-qualified by a loan agent who is trusted by both your real estate agent and the seller's real estate agent can be a significant advantage.
With the advice of your real estate agent there may be times when you want to be pre-qualified by two different lenders. The "trusted" loan agent may not be able to deliver as good of a loan but will be willing to be in a back up situation and jump in it the other loan agent doesn't deliver.
Normally a loan agent is recommended by a real estate agent when they deliver competitive loans and can be counted on to do what they say they will do. The real estate agent doesn't want a purchase to fail because a loan agent doesn't deliver.
I have a web page with basic information about mortgages at
Juliana Lee, MBA LLB
Top 3 agent nationwide at Keller Williams Realty
Over 20 years experience
Over 1000 homes sold in San Mateo and Santa Clara counties
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
Wow! Are you in New York? Is it cold? We think it's cold here in the San Francisco Bay Area...about 32 degrees last night and a high of 55 today...Anyway, back to your question!
It is your decision on who to use for what service. I appreciate clients who are up front with me and tell me who they will be using for their lender, realtor, etc. And I tell my clients that they are putting a team together in the purchase of their home, and it is the responsibility of all the team members to work together to get you the best home, at the best price, with the best terms. Oftentimes, my clients will ask for recommendations on inspectors, contractors, title companies, etc. I provide them with these contacts, but recognize it is ultimately the clients choice on who they hire.
Good luck in the purchase of your first home...in San Jose? Hope you enjoy our weather!
As the previous responders said, you are free to use anyone that you wish.
It is best to discuss this matter up front with each one, and let one know that you want him to do the loan for you and the other to represent you on the purchase of the house.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
Great question! I think you got the answer. Again, you can use service from anyone you wish. You're not required to use both services from one person. Just let the Mortgage Broker know that you would like to work with your known Realtor.