It depends upon why your Realtor is recommending that you use certain lenders. When I worked for a big real estate company, I used to get a lot of pressure to recommend the â€œOne-Stopâ€ approach by selling the loan services, insurance, title, etc. that were under the same corporate umbrella. I was not compensated, but I was still expected to support the affiliated companies. RESPA laws require disclosure of any compensation. Thatâ€™s a good thing.
I am still not compensated for any referralâ€¦.nor am I looking for such. Butâ€¦.I am now free to refer lenders, insurance firms, and title companies based upon the value and workmanship of the companies.
Is your Realtor recommending in-house services? When I was with a large One-Stop real estate company, it was a revolving door in the mortgage dept. I witnessed changeover multiple times per year in some years. I met great mortgage reps and a few that I wouldnâ€™t provide the time of day. Because a referral is in-house does not make it, in itself, a poor recommendation.
Today, I am independent and can make whatever recommendations I choose. I have no objection when a buyer wants to work with their own bank, or lender of their choosing. I sometimes hold my breath and â€œhopeâ€ I am going to get a lender representative who will be cooperative, attentive and work as a partner to move things along smoothly and quickly for the buyer. Sometimes I have been saddled with the mortgage rep from hell, and other times the introduction through the buyerâ€™s lender of choice has led to a new relationship that actually ends up on my future referral list.
The bottom line. Your Realtor wants your transaction to go smoothly and having a knowledgeable and attentive representative on the lender side is important. Your Realtor will make recommendations to you based upon this. It remains your choice to pick the lender you want to do your loan.
It is often wise to shop with a few prospective lenders before making a decision.