After handing off the customer to a loan officer, how much is the right amount for a Realtor to be involved in the loan transaction?
“I think most loan officers would respond that they would rather the real estate agent handle the transaction, and the loan officer handle the loan transaction completely. Of course, the agent will want updates as to the progress of the loan, specifically if there are any issues that may delay a closing. The right amount of communication mainly depends on the comfort level the Realtor has with the individual loan officer. With the agents with whom I work most closely, they know that their client is in good hands, so the only communication is to confirm loan approval; which usually happens before the initial meeting with the client, appraisal value confirmation, and closing statement review, which usually occurs a week prior to closing. Other Realtors who have not worked with me previously may require more ‘comfort’ communications to insure appraisal, title, etc. are coming along as expected.”
- Robert Fleischmann,
SunTrust Mortgage
“Regarding your question, the amount of involvement is really up to the Realtor. With HomeBanc Mortgage, we try to make the loan process seamless for the borrower, and hence the Realtor. Unless some unanticipated issues arise, the Realtor can stay out of the process and focus on what they do best - finding new buyers and sellers. Ideally, we only have to contact the Realtor a couple of times to confirm details, and then show up at the closing with the money in hand.”
- Donald Ster,
HomeBanc Mortgage Corporation
“Due to the privacy act, unless the borrower signs a waiver the Realtor should not be in the loan transaction unless they are a licensed mortgage broker and it is going through their own firm or they are legally brokering to a mortgage lender. Typically, when a Realtor sends me a customer, I take care of the prequalification/credit documentation and anything to due with the borrower’s loan program. The Realtors typically set up home inspection, and orders the title and survey. With today’s situation, most of the real estate firms have their own mortgage companies so there are different disclosing requirements. The biggest issue with most Realtors when they send you a loan would be if the client is pre-qualified and are you giving them a good rate, term and closing costs and can you close within the contracts parameters.”
- Jacqueline Parrillo,
SouthTrust Mortgage
“Real estate agents should develop a relationship or two with a mortgage broker who they know and trust will get the job done. If the agent feels like they need to ‘micro-manage’ their mortgage person, then they probably need to find a new one. Nevertheless, agent involvement should be kept to a minimum so as not to overwhelm the mortgage broker while they are concentrating on getting the file closed.”
- Joe Budetti,
Universal Realty Network
“If it is a loan officer that you use on a regular bases, I think the Realtor’s involvement should be limited. After all, this is someone you have been doing business with and should know his or her responsibilities for getting the loan approved and closed. If it is a loan officer or bank that you have not used before, much more Realtor participation is needed. Follow up with the loan officer and the client is important. Also, the new loan officer should be made aware of your [the realtor’s] expectation - i.e. follow up, returning calls and providing fees for the loan.”
- Bob Hawley,
Sid Higginbotham Builders
“I don’t feel that I’m handing off my customer to a loan officer. Rather, the loan officer now becomes part of the transaction process. It is important that the loan officer is someone you trust to work with your customer, and the flow of activity is combined with follow-up by both the agent and the loan officer. This keeps the customer happy while they gain confidence with the process. As an agent I may not need to know details, but I do need to know the progress and positioning to keep the deal together.”
- Sue Hollis,
Watson Realty Corp in Ponte Vedra
“It depends on the trust or experience that the Realtor has had with the loan officer. Sometimes you may need to be the third party that is the middle person for all information or just the person that gives the loan officer the phone number and says tell me when it’s ready to close.”
- Todd Arnold,
Kent and Associates Realty Services
“The Realtor should be involved from the standpoint that the mortgage officer keeps the Realtor[s] updated on a continual and timely basis regarding progress and checkpoints such as ordering the appraisal, underwriting approval, etc. We work in tandem with our Realtors to insure they are viewed in a positive, professional manner by the clients.”
- Allen Dye,
North Star Mortgage Network
“I am an originator and when an agent referrers a customer I want to take as much off of them as possible. My ideal situation is to have the agent available just for updates and I handle everything. Sometimes I will ask an agent to get involved on property related issues, but not for loan issues. I want the agent to feel at ease and know if I have the customer the package will be at the closing table and if something should come up they will receive a call immediately.”
- Eddie O’Keefe,
Pranata Financial
“When I am involved in a sale [either as listing agent or selling agent,) I feel it is OK for me to call the loan officer or processor on a periodic basis [weekly, if I don’t hear from them] just to insure that the file is moving along smoothly without delays. If I am made aware of any problems, I call the buyer or selling agent and ask them to take care of the problem as soon as possible. Sometimes, just a nudge is all it takes to get things rolling or over the hill.”
- Sandy Holdren,
Watson Realty Corp.
“If the Realtor sent it to the right loan officer, they should just show up at closing!”
- Brad King, BB&T
“If you have your customer/client’s interest at heart, it is wise to let the loan officer know that you are interested and wish as much information on the process as your customer/clients wishes you to have.”
- Matt Burnette,
Matt Burnette & Company
“As a Realtor, I am not really involved in the loan transaction. However, to answer your question it depends on 1] whether I have the buyer or seller, and 2] how sophisticated, for lack of a better word, the buyer and his/her agent are. If I have the buyer, I usually keep track of where the loan is in its progress to underwriting, and then on through to approval - i.e., if the appraisal ordered and done, if all of the documentation in and so on. If I have the seller, I may check with the selling agent or the mortgage company to get a progress report to see if everything happening as and when it should.”
- Toy Scott,
Norville Realty Inc
“I think that Realtors should be more aware of the loan process and what’s involved with securing financing. As a listing agent, so often we receive contracts on properties where the agent representing the buyer has not even explored the buyer’s financing possibilities. If the lender is not on top of their game, it can make or break a transaction. That is why I use Kathy Timmons with CTX Mortgage. She not only keeps the buyer’s Realtor involved every step of the way, but also the listing agent and closing agent. Kathy and her company have a goal to provide closing statements at least three days prior to closing and use the Internet to communicate fully the status of every loan.”
- Phyllis Staines,
Re/Max Coastal Real Estate
“Not at all. We do our job, the lenders do theirs...so long as we don’t recognize any out of the normal and customary costs.”
- Russel Goodman,
Re/Max Atlantic
“When you say ‘the right amount,’ exactly what are you referring to? After handing off a customer to the loan officer, it would be a dream if the Realtor did not have to worry about asking for things like approval letters, appraisal amounts, whether or not the lender requires a WDO, etc., especially when these types of contingencies are clearly stated in a contract.”
- Jason Hoffman,
Coldwell Banker Palazzo Realty, Inc.
“I feel the right amount should be to give their advice, but not to intervene. After all, that is what loan officers do for a living.”
- Jon Gaskins,
Mercedes Homes
“It really depends on the comfort level of the customer. If he or she wants hand holding on my part, they gladly get it. If they want periodic updates, then that is what they get. Keeping open communications between customer and Realtor is always key.”
- Larry Atwell,
Vanguard/GMAC
“If you have a good loan officer, the loan process should be handled entirely by them. It’s the rest of the transaction details that are handled by the Realtor. I work with several experienced bankers and brokers. They make it look easy. All I need to tell them is the buyer’s name, phone numbers and property address. They ask what day I want to close and where. Having a lender that gets the job done quickly, and with the least amounts of problems is a Realtor’s dream come true. With service like that, why go somewhere else?”
- Fred and Jenet Cattar,
Cattar Realty, Inc.
“I personally am very involved in the loan process. I want to find out sooner rather than later that or if things aren’t going smoothly - i.e. low appraisal, client not providing info in a timely manner, help with insurance policy or application questions about the house, etc. Also, pushing to get loan packages to closing attorneys in a timely manner so we receive HUD statements early enough for customers to be able to get their certified checks for closing.”
- Rosemarie “Ro” Andrade,
Watson Realty Corp.
“I prefer not to ‘have to’ be involved, especially if I’ve passed them on to a loan officer. However, once a loan officer takes the application, it goes to a processor and it could be anybody’s guess as to what happens from there! The good ones [processors/loan officers] keep my business because they keep the communication line open and I am informed as to the current status of things. If they need my help getting info, additional explanations to the buyers, etc., I am only too happy to help and the ‘right amount of time’ is the amount of time it takes, regardless. However, it seems that too many times files are put to the side until “closer to the deadlines” and then it is a constant rush at the last minute, causing much unneeded stress. It is no wonder that when Realtors are solicited to handle their own loans and get a fee for it that so many do.”
- Janie Boyd,
Norville Realty, Inc.