You’ve been in this situation before or know someone who has, right? A seller accepts an offer and just a few days away from closing the attorney calls and says he doesn’t yet have the closing papers. After a couple of phone calls you find out that the deal fell through; the buyer didn’t qualify after all and used a lender you’ve never heard of. Why do some buyers refuse to use loan officers referred by their agents, anyway?
Some agents think it’s none of their business where their buyers get their loan. Agents buy and sell homes and let the buyer’s financing fall where it may. You don’t want to know anything about your client’s finances or their credit or their job and in fact it’s none of your business.
When you refer your clients to a quality loan officer or two, you’re not interested in the buyer’s overall credit profile, you just want to know if they’re qualified for a loan or not. Really qualified. After all, it’s your credibility on the line when you present an offer on a home and your buyer produces a pre-approval letter from their lender.
The reason to refer your clients to a professional, experienced mortgage loan officer is to ensure the loan will in fact close when it’s supposed to and you can spend your time buying and selling homes instead of calling up a lender and chasing down paperwork for your closing.
You don’t have any control over who your clients go to for their loan but you can provide suggestions. When you first interview a prospective client, you find out if they’ve been pre-approved by a lender first, right? If they haven’t, provide them with a referral or two. If they have, still provide them with a referral or two just to have them get a “second opinion.” When loan approvals appear to teeter, it helps to have a relationship with a loan officer you can trust and who will give it to you straight.