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Hi Tawny - If my clients aren't happy with my lender, then neither am I.
Fort Wayne, IN
Rancho Cucamonga, CA
Tawny, I've left lenders for far less! I choose the lenders I do because they "get stuff done" and provide top-notch customer service. If they charge higher fees, they better provide something for that. If they are just taking advantage of me and my clients, in the words of Shark Tank's Mr. Wonderful, "they're dead to me."
For my own loans, I use my lenders. I've had bad experiences with a lender on my preferred list once and they were off that list by the time I was 10 days into escrow. I even almost left a bank because of their loan application process.
If a client told me this you bet it would matter. I would say "Let's get them on the phone and talk about this".
Rancho Cucamonga, CA
The lenders I recommend have to have competitive rates.
You bet it would and I would have a conversation with the lenders about it. I want my clients to have the most competitive rates and fees.
At one time I had a Mtg broker license and owned a large mortgage company. Out of the 42 loan officers, I would only use 3 for my buyer clients...the ones that were at the top of their game, and knew how to package a loan to fly through underwriting.
What I have learned is the good brokers do not work for free...(just like real estate agents) and good mortgage lenders are ususually close in what they charge. There are many ways to lable the fees, schuffle the fees and distort the charges.
I always recommend my preferred lenders and the buyer can make the final decision. I never go for cheap, because I have never found "good" with "cheap".
And yes, I like to use the best in the business even for my own personal mortgage. It saves time, headaches and fixes transactions that otherwise might not close.
Pacific Palisades, CA
Colorado Springs, CO
Everyone has to make a buck...It makes the wrold go round. That's all I know
Richie Alan Naggar
Hi Tawny, Great question and I enjoyed reading some of the answers. As a Mortgage Broker, excellent rates, low fees, and great service and honesty is my package deal. Many agents have their preferred lenders because they get their deals closed. I find that with them, rates and fees are secondary and only will be an issue once the buyer says something to the agent. When I make a referral, I have checked out not only their service, but their pricing. If you won't use your preferred lenders yourself, why would you tell your customers to use them? I still believe that you can get "good and cheap", you just need to find them. I think each agent should review their preferred lenders and really find out if they are the best for your clients. I bet many will find out they are not. Try shopping them and see if they are the best or not.
Definitely! We like to know we are providing value throughout the entire transaction. Yes; it would affect my personal decisions!
Where dollars are concerned everything matters. Choosing to pay higher rates and fees is not on the agenda for myself or my customers.
It depends of what " very high" is. It seems that there is usually not a huge difference in rates from lender to lender. Quality of service is another story.
They are not long for my list if they are not competitive with rates and great with service.
Absolutely. I work very hard to help my buyers find the best lender for them and closing costs and interest rate -- bottom line -- is always important.
I give them a different lender or broker.
Borrowers are not dumb... They shop around.
Yes if it were an issue for my clients I would want to know
Yes, it would matter because if it didn't, they wouldn't be talking about it. I would see if we could get the lender on the phone to see what the charges were and compare them to other lenders. Sometimes there is just a misunderstanding, but the best way to clear it up is to find out. Good question!
Dick Greenberg and I are on the same page on this subject. A
This is where the LE comes in for your clients, it allows them to really see what is right for them. What the LE doesn't show is how satisfied they will be throughout the process. That is where the key is, would they be willing to sacrifice a few hundred dollars for a lot less headaches? They should treat it just like an interview process... let the LE be the resume and then speak with each lender to make sure that this is who they want to go through the process with. They aren't buying a car, or applying for a credit card... this is a life altering decision.
Our list of preferred lenders changes frequently - non-competitive rates is one of the reasons. If my clients aren't happy, then you're not my preferred lender any more.
Nope, they can choose whatever lender they want as long as the lender gets the job done
Cost is a factor, but service is most important. If the customer is consumed with cost, my referral might be different with a word of caution that cost may effect service!
I would check it out.
I would have a conversation with that lender to see what's what. At the end of the day, it's up to the client to decide where it's worth paying money.
Provide your best advice but they still make their own selection.
Tawny Lynn they definitely have a right to choose their lender.
After couple of clients lost, the lender should 'get it'!
of course it matters and no I would not use the lender partner for my own mortgage
If my client is not happy I have no issue with them talking to other lenders. No, I would shop around if my lender charged more fees without any advantages for my loan. Not all lenders are equal nor do they offer the same products. A home is a large purchase with a longtime commitment.
If the services have a higher value then I don't have a problem with higher fees. If the services are the same or equivalent then yes, it matters and no I would not use them personally.
Lenders are pooling from the same source for 90% of the closed loans- US government sets the pricing a couple times a day. Translation: FHA USDA Conventional are all priced in same bucket. Consumers can get a low ball quote that isn't related to their deal very easily- doesn't mean it is related to their own needs. The freeway billboard might say: 2% 30 year fixed but it is meaningless. Close on time - means something. Jumbo and niche loans are ballpark where skill and honesty determine the outcome.
I sold my super jumbo house recently/ Buyer's lender lied 64 days on a 30 day escrow. It is difficult to weed through the quote from the real closing, even when in the business.
Nobody wants to be overcharged, but if the high rate lender gets significantly more deals closed then they may be worth the money.
I would re-examine my definition of "preferred lender" - do they supply super service (whatever that might be) to warrant the higher pricing?
You can not force your client to use your preferred lender. If they can not offer competitive fees, I would not blame clients for using someone else. I never though had such complains about my current lenders. But of course, I had similar experience before, when I worked with big companies and had to use their in house lenders.
Ditto Dick Greenberg and Ron and Alexandra Seigel