Home Buying in Boston>Question Details

willisdang12…, Home Buyer in Boston, MA

would mortgate interest rate be higher if the listing agent and buying agent is the same person?

Asked by willisdang1234567, Boston, MA Fri Jun 7, 2013

I am buying a property and the mortgage interest came back to increase 0.5 point due to the fact that i chose my buying agent as the same person who listed the property. Thank you very much for all your answers.

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We have not heard of this. The agents and lenders are separate.
3 votes Thank Flag Link Sun Jun 9, 2013
Great response
Flag Sun Sep 1, 2013
Sounds strange.
Flag Sun Jun 9, 2013
No. The realtors help you buy or sell a property. Lenders will fund the loan. When we work with buyers, we have them contact a lender for a pre-approval and a pre-qualification letter.
1 vote Thank Flag Link Wed Sep 18, 2013
Thanks for sharing
Flag Wed Oct 9, 2013
Since you should have already got a pre-approval letter before looking for a home, then you should know the rate that you should specifically get with all information on the table.
There is always a date where this approval expires though, which should be the only time rates would go up.
Although not usually recommended, having one agent for both should not have changed things.

Even if an agent drove the price up on you or even down for you, it wouldn't change the fact that you were approved for a certain amount of money.
1 vote Thank Flag Link Sun Aug 25, 2013
WillisDang1234567, Your question is very interesting and I’d like to talk to the financial institution or mortgage broker involved. Please invite them to contact me.

As noted by comments on Trulia, one would normally expect that mortgage rates and real estate agency act independently. If your situation suggests they are now being linked, the question is WHY.

Contrary to others who have dismissed this scenario, I'd like to learn more about the situation before making a judgement. As Robert Shiller, Yale economist and co-founder of the Case-Shiller report said recently, "we are in a totally artificial housing market." My question is whether lenders are now pricing individual loans to reflect different RISK scenarios, and if so, whether that violates any laws.

Speaking of legal requirements -- Using the same agent or agency to represent buyer and seller is risky, and considered an act of fraud without informed consent. That is why the state of Massachusetts REQUIRES agents to disclose that conflict of interest inherent in BOTH dual agency and designated agency before entering into any agreements. Whether the agent or agents involved comply with the state's mandatory disclosure, or whether the buyer and seller know enough about the possible financial harm to give "informed consent" - an important legal standard -- are complicating factors and add to risk.

If your situation is more than an isolated incident, could lenders be saying, we don't care whether uninformed or misinformed buyers see the conflict of interest, we do and were going to charge a higher interest rate to reflect our RISK.
1 vote Thank Flag Link Sat Jun 8, 2013
Great response!
Flag Sun Jun 9, 2013
Ridiculous. Find another (reputable) mortgage broker.
0 votes Thank Flag Link Mon Aug 26, 2013
Real estate agents don't control interest rates. Maybe you didn't "lock" the rate you were quoted and rates increased in the interim. But again, agents don't set rates!
0 votes Thank Flag Link Sun Aug 25, 2013
God no... get a new lender if that is the case. The agents have nothing to do with your interest rate!
0 votes Thank Flag Link Fri Aug 23, 2013
Did you get approved by a mortgage broker already? Mortgage brokers have access to many banks, private lenders and different programs. Finding a mortgage deal which has both, low interest rate and other convenient terms can be time consuming but, it's worth to compare with different lenders.
After you are pre approved get in touch with a real estate agent that can assist you with the buying process, you do not want to deal with the listing agent. Listing agents have to work to get the best deal for the seller, not for you.

Best of Luck,

Maria Cipollone

0 votes Thank Flag Link Fri Aug 23, 2013
Interesting.. I would just suggest a buyers agent. A listing agent, is working with the sellers best interest in mind, not really the buyers. Find an agent that will represent you 100%
0 votes Thank Flag Link Fri Aug 23, 2013
First of all you should seriously consider working with an exclusive buyer's agent to protect your interest throughout the purchase process. That is why the State of MA has mandated agency disclosures to make sure the buyer realizes the listing agent works for and must protect the interests of the seller not the buyer during a dual agency scenario like yours.

To answer your question about the increase in points, I have never heard of this before and quite frankly it doesn't make much sense. I would ask for that in writing or make sure you shop around your loan before choosing that lender.

Good luck!

Territory Real Estate
Massachusetts Destination for Home Buyer's
617 848 5407 ext 704
Web Reference: http://territory.com
0 votes Thank Flag Link Fri Jul 12, 2013
Do you have this is writing? Another example of lenders existing in their own little world, one in which that feel comfortable making up things as they go along!

There should be no connection between the agents involved in the transaction and your mortgage interest rate. My advice....keep looking.......

Making up crap to take advantage of customers shouldn't be tolerated.

0 votes Thank Flag Link Sun Jun 9, 2013
Mortgage rates have nothing to do with who is representing you in the buying process.
Your rates depend on the bank and mostly on your credit worthiness.
Best of luck.
0 votes Thank Flag Link Sat Jun 8, 2013
This makes no sense at all.
0 votes Thank Flag Link Fri Jun 7, 2013
I have to say I have never heard of this and sounds ridiculous even laughable really. Is the Realtor applying for the mortgage together with you? Check with this mortgage company as to why the increase on your rate it should have nothing to do with the Realtor whatsoever, as already mentioned here. Let us know how you make out. Good luck
Web Reference: http://wenrealty.com
0 votes Thank Flag Link Fri Jun 7, 2013
Hi..and I am in agreement with all the others...there should be no correlation between the mortgage company and listing or buying agents...it has to do with your credit worthiness, employment history, debt to income ratios and the like...I also suggest you talk with another mortgage company. If you are already in the midst of the transaction and you are running out of time for obtaining your loan commitment, then you have to make a choice to stick with it or ask for an extension. Good Luck!
0 votes Thank Flag Link Fri Jun 7, 2013
This is unheard of, as realtors should not have any affect of the interest rate.

Best Of Luck
0 votes Thank Flag Link Fri Jun 7, 2013
Absolutely not. Mortgage rates are in no way connected with Realtors and/or closing attorneys used in the transaction. Mortgage rates are solely tied to the borrower, property type and length of rate lock needed.
0 votes Thank Flag Link Fri Jun 7, 2013
The finance person who delived this explanation to you is the same person you should distance yourself from.
There is an equal correlation between interest rates and tides as there is between who is represnting you in this transaction and the interest rate.
Someone has every intention of seperating you from more of your hard earned money.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes Thank Flag Link Fri Jun 7, 2013
NO way, NO how, should not be so as it has nothing to do with your interest rate. Interest rates are set by the bank or mortgage company you get a loan from, the listing agent or buyer broker has NOTHING to do with the rate you are charged for your mortgage. Your loan officer should be able to outline what mortgage programs are available to you and what their rate is and what the closing costs will be without batting an eye. If they are charging you too much, switch companies and get a new loan officer.
0 votes Thank Flag Link Fri Jun 7, 2013
This is not true. Mortgage rates are independent of who agents are and have increased across the nation in recent weeks. That said, you probably should have used a buyers agent to help you negotiate price
0 votes Thank Flag Link Fri Jun 7, 2013
No, confirm with your lender, but my understanding of mortgage rates are:

1. Credit History
2. Down Payment
3. Debt to income ratio
4. Current rates
5. etc.
0 votes Thank Flag Link Fri Jun 7, 2013
No. The interest rate pertains to the individual seeking credit, nothing to do with realtors. I have never heard of such a thing...perhaps you should ask your banker or broker for more explanation and a full disclosure of this increase in rate. Good luck.
0 votes Thank Flag Link Fri Jun 7, 2013
These are completely independent. Could it be possible it was another reason for the rate increase and there was a mis-understanding in that conversation? Rates had been steadily increasing over the last month, so I'm not surprised your rate increased if you were not already locked in.
0 votes Thank Flag Link Fri Jun 7, 2013
I have not heard of such an add on.
0 votes Thank Flag Link Fri Jun 7, 2013
There should be no correlation between your mortgage interest rate and who your real estate agent is... If that is the reason given for the increase then you need to find a different mortgage broker...
0 votes Thank Flag Link Fri Jun 7, 2013
That is a first for me! No sir that is not the case as Interest rates have inched up recently and has nothing to do with your Realtor®.
0 votes Thank Flag Link Fri Jun 7, 2013
Your agent has nothing to do with your real estate agent. You can check with different lenders as to what options you have and compare rates and terms. Is it a direct lender you are using or a mortgage broker?
0 votes Thank Flag Link Fri Jun 7, 2013
Mortgage interest rate have nothing to do with the brokers who list or sell the property. Mortgage interest rate on the condo baby I'm a little higher if you're putting less than 25%
0 votes Thank Flag Link Fri Jun 7, 2013
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