Is it okay to go with a broker/banker that the realtor is familiar with/recommends? or should i keep them separate?

Asked by tsarahwhitfield, Queens, NY Thu Jul 18, 2013

please explain bothe the pro's & cons'

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14
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Thu Jul 18, 2013
Your realtor only gets paid when the deal closes so if they have someone they recommend, you can be sure the lender has a proven track record of getting loans closed.

There is a lot of information out there, some good and some bad. It's easy to get sucked in with the promise of a low interest rate that seems too good to be true. Hint: it usually is

As a lender, I place a huge value on being able to deliver the rates and fees I promise and to hit the desired closing date with no surprises. This is why many realtors refer me. To me it is a huge positive to have a working history with an agent. It just helps things go through smoother.

With that being said, it's on the lender to establish a trust level with you and deliver a rate that is competitive. Notice I didn't say the lowest rate. I treat my customers fair - sometimes I'm the lowest but most of the time if I'm not I'm pretty close.

Have a conversation with your realtor's guy, then talk to your bank or credit union to get a 2nd opinion and see who you feel most comfortable working with. Getting some different quotes also helps keep everyone honest.

Best of luck!
1 vote
J, Agent, Greensboro, NC
Thu Jul 18, 2013
This is a terrific question. Thanks for asking. It is obvious that when a banker and broker partner together they refer business to each other. Some may see this as conflict of interest (con) and others see it as a convenience (pro).

Before deciding, the most IMPORTANT question to ask yourself is where can you get the best interest rate and terms on your next mortgage. You may want to talk with several lenders to make the RIGHT choice based on your individual financial situation. It's your hard earned money. Good luck to you!
0 votes
Gail Gladsto…, Agent, 11743, NY
Thu Jul 18, 2013
tsarahwhitfield,

This is totally up to you. If you have a good comfort level with your Realtor and trust him/her, why not check out this person.

It is wise, however, when deciding what vendor to use in any venture, to interview several and see how they operate and what they have to offer. Not every lid fits every pot.

Try a banker, a mortgage broker, a mortgage banker, etc., and see what situation is the best fit for you.
0 votes
Belal Mohd, Agent, Rego Park, NY
Thu Jul 18, 2013
A realtor who has your best interest, will recommend an equally good mortgage person. That being said, you should compare mortgage rates, closing costs and bring it to your realtors attention and get more than one recommendation.
0 votes
The Roskelly…, Agent, Gambrills, MD
Thu Jul 18, 2013
Absolutely YES! Realtors gain nothing financially for providing you information about the best local lenders. Their only "reward" is that you receive the best service and rates on your home purchase and the surety of working with a pro who has gotten deals to the settlement table in the past.

Once your home inspection and appraisal are over your home purchase rests solely in the hands of your lender. You want one you (and your agent) can trust.
0 votes
Terry Koraha…, , 11358
Thu Jul 18, 2013
Below is all good advice, I personally refer lenders that have done a great job ONLY WHEN ASKED. But I tell buyers to ask friends and family as well. The last thing I want is to have a buyer think they should have and didn't. Whoever they feel most comfortable with, will give them the best service is who to go with. Terry 718-614-3167 or TKorahais@elliman.com
0 votes
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Thu Jul 18, 2013
Could be a good or bad thing. But when the Realtor and the Loan Officer are both good at their job, it's almost always a good thing to go with them both as a team.

I would meet with the Loan Officer and see what they say. Then meet with one more and compare. I always advice people to not shop for the best rate and fees, but rather shop for a reliable Loan Officer who can get the job done. If you trust your Realtor, and see that he/she is knowledgable and has integrity, then you can use your better judgment with the Loan Officer they recommend. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes
Thu Jul 18, 2013
The type of loan you are applying for can make a huge difference...ask family and friends who they used and how it worked out. Get a referral from someone you trust - if that person happens to be your Realtor...great!
Web Reference:  http://www.bverealty.com
0 votes
Sally Grenier, Agent, Boulder, CO
Thu Jul 18, 2013
I prefer my buyers use a lender who I've worked with before, and who I know can close loans on time. I've had good and bad experiences when buyers use their own lender. Sometimes we get lucky and their lender does a great job, (and then I have a new lender I know & trust). But sometimes their lender is TERRIBLE and I swear I will never let a buyer pick their own lender again! (which I can't do).

I would talk to a few lenders --maybe one or two your agent recommends and one or two that have been referred to you by friends or family.

Do NOT base your decision on rates / closing costs alone. (most lenders are pretty competitive anyway). Go with their customer service and personal attention. Personally, I love lenders who do their underwriting up front, and in-house. My loan originator can sit down face to face with underwriters and go over any issues that come up, instead of dealing with a faceless person in cube across the country.
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Thu Jul 18, 2013
Did you have an interview with that mortgage broker already? How did you like that person? Did he/she answer all your financial questions on the first meeting?

Using a Mortgage Broker is a good idea for most of the prospective buyers because they have access to many banks, private lenders and different programs. But, choosing the right one is up to you. Interview several brokers and see which one will click with your needs and give you better terms and rate.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Jul 18, 2013
Use the lender that you are most comfortable with, shop around if necessary...
0 votes
Michael Rich…, Agent, NY,
Thu Jul 18, 2013
Hi,

If the real estate broker you are working with is reliable and professional, you can be sure the person they recommend to go to for a mortgage will also be professional and reliable. If you don't have a good feeling about your real estate broker, investigate other options.

Michael Richman
Licensed Real Estate Associate Broker
KIAN Realty
450 7th Avenue Suite 1501
New York, NY 10123
212-757-8268 x220
917-991-2528
mrichman@kianrealtynyc.com
http://www.kianrealtynyc.com
0 votes
Anthony Juli…, Agent, Richmond Hill, NY
Thu Jul 18, 2013
Hi,
You should work with the bank that will offer you the best terms. Sometimes real estate agents/brokers refer to a bank which the familiar with since the closed loans with them before and the feel more comfertable knowing it will CLOSE. If you have a better offer from a different bank with a better rate and less fees(make sure to compare good faith estimates) then you should go ahead and save yourself money. You didn't mension if it's a buyer broker you working with or seller broker? If its a seller broker keep in mind that he/she are looking for best int of the seller and not yours. You should have the answer for this on the disclosure form that was presented to you by the broker.
If you need any help finding a home in Queens area please give us a call. We have the largest inventory at the moment and prices are very reasonable. Good luck!
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Jul 18, 2013
No matter whom you choose; you should get at least two quotes:
The Federal Gov requires lenders to give you a GFE, (Good Faith Estimate) which breaks down everything so that you can compare. You can't compare just one; that would be trust.
0 votes
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