What Realtors Want and What Lenders Need October 1, 2013 Having been in the real estate business for over thirty years I have seen so many surveys, questionnaires and research done on the topic of what realtors want from a mortgage lender. Every report continues to give a resounding call for three top things that are most important to realtors. The three most important things that consistently appear in research of what realtors want in a mortgage professional are honesty/integrity, communication and access/availability. What Realtors Want In evaluating the three most important things realtors want in a mortgage professional the highest was honesty/integrity. In life and our business a relationship is doomed without honesty and integrity. Being honest and having high integrity demonstrates that you truly care about those around you, regardless of outcomes. The truth is hard to take sometimes; yet, as real estate or mortgage professionals we have to deliver bad news that is the truth to our clients. Delivering the truth does not have to be “sugar coated”, as some would say. The truth should be given that takes careful consideration of someone’s feelings, provide accurate results and be palatable. Even though you have to deliver bad news it can be used for good in the long run. For example, when I have encountered clients in the starting process of loan approval think they can qualify for a certain amount but find out their income or credit is such that would prevent it, it really saddens them. Now, honesty and integrity will deliver the bad news but in turn have positive options that can be realized in the future or what they could qualify for at the current time. Realtors want the truth and not spend time trying to force a purchase that will never go anywhere but into frustration. Realtors want honesty and integrity. Communication was the second most sought after attribute by realtors. In the world of real estate communication is critical. Communication comes in two main forms; those are: verbal or written. Depending on the realtor, client and mortgage professional needs around communication it can differ from client to client. Some clients or realtors want a phone call; some may shoot me an email; or, provide me some systematic access to know what is going on through the process. Research shows that realtors want communication in both forms and depending on the situation may need to be immediate or could be routine as a part of the process. For example, when an urgent issue arises realtors want an immediate phone call from their mortgage professional, while in cases of the routine procedures they are happy with an email such as approval, appraisal ordered, final approval, file moved to closing, closing set and such. Realtors want to know so that they are not blind-sided by a phone call from the purchaser or seller when the mortgage professional should have already discussed the concern with them ahead of time. Realtors want communication. Last but not least in the top three things realtors want from their mortgage professional is access/availability. Some think this is 24/7 and that is not practical for anyone. It is impractical for anyone in any profession; or, even life in general, to have 24 hour, 7 days a week total access to their professional service provider. Now, there is reasonable access and availability that everyone should consider and work diligently to provide their clients and partners. Realtors want access and availability within reason; that means to return calls promptly, keep them informed of your accessibility and treat them the same way you would want to be treated by your service providers. For example, when you are out of town, in meetings lasting more than an hour or even on vacation let your partners in real estate be aware and make a plan on how you will take care of your realtor partner during these down times. There are systems and solutions to help with accessibility and availability to keep your realtor partners informed. Remember to be reasonable and considerate of each other’s professional and family/personal lives as well with access and availability expectations. What Lenders Need As we all know the mortgage lending industry has been turned upside down and shaken to its core that everyone and their brother is scared to death of what will happen next. Fortunately the process of getting a mortgage loan is still the same for everyone; that is, you apply, you provide documentation and you receive a decision. Now it may sound too simple but having done this for over 30 years it is the same process for everyone. What is different is how realtors, clients and mortgage professionals interact to get the decision on their loan. Recently I heard a loan officer say we will give customers a decision in 32 seconds! Wow! Really? I could say the same thing but it would definitely be after having a professional conversation with the borrower to understand their financial picture and needs (application), getting the documentation to support the application (documentation); then, get an “automated decision” with automated underwriting systems and whala! Guess what though? Everyone has to have a signature on the approval and that means a human being has to see what was inputted to affirm accuracy to truly get a final decision (factual decision). OK, enough of lending 101 for those who know that so called “immediate decisions” require verification and computers are not the final answer to a loan decision. In discussion with other mortgage lending professionals it was no so surprising to see that the very things realtors want in their lender, lenders want the same in their realtors. Mortgage professionals need honest realtors with integrity to reach the common goal of creating homeownership for their mutual clients. Honesty and integrity from the realtor to their lender, according to recent surveying, is to be fully disclosing about the property and the objectives or their purchaser. Also, the biggest thing I heard was that realtors need to make it clear to their purchasers and sellers that getting a mortgage closed is a process; it will take longer than they may imagine when a mortgage loan is involved. Most lenders want 30 days from the date of acceptance to close the deal. Trying to rush closing transactions does not benefit the buyer or the seller, because just like the drive through we frequent when rushed always misses something! We really do not want to miss something in our transactions. Integrity involves setting right expectations with all the parties so a smooth transaction can take place and everyone sees it as a wonderful experience to own a home. Mortgage professionals need honesty and integrity. Lenders want communication too. Lenders need to hear from their realtors on any matter that affects the client or property as soon as they know about an issue. For example, after a 4 point inspection has been done and there is a problem that would prevent insurability, don’t delay in advising your mortgage partner as it could save a lot of heartache for everyone and avoid an appraisal being ordered/completed that would end up wasting the purchaser’s money. Additionally, when lenders are communicating any concern and identify potential delays they want the realtor to understand and communicate the same to the seller so that any fears or concerns are eliminated or dealt with in the process of getting to a closing. Communicating effectively and respectfully is critical to keeping a sale on track. Mortgage professionals need communication Lenders need access to their realtor partners. The best mortgage professionals have access to their realtors for many reasons. One of the primary purposes is to provide them added value to increase sales and in turn create more loans for the mortgage professional. It is a win-win scenario when your mortgage professional can have access to you so they may know your needs and/or goals for sales. The best mortgage professionals know how to look into the listings, sales and the properties to help them achieve their sales goals. Access to one another can be a systematic process that both the realtor and lender agree upon to maximize each other’s time and efforts. Decide on when, where and how to let your lender have access and availability to help you increase sales; but, if your lender is not adding value to increase your sales, find another partner who will help you. And, just like realtors, lenders need to be reasonable and considerate of their realtor partners’ professional and family/personal lives with regard to access. If we really give the top three things a realtor wants and a lender needs greater focus the overall experience for the client (purchaser and seller) would create a much more harmonious event for everyone. So, if you are a lender or a realtor, think about what each other person needs in meeting the final objective – create happy homeowners and happy sellers. Together with honesty, integrity, communication, access and availability we can all have happy clients for years to come. If you have questions on this subject or any other, please call me any time on my cell at 229-834-6372. Happy listing, selling and lending everyone! Copyright © 2013 David Parker Mortgage News. Reproduction, re-publication or transmission of any David Parker Mortgage News Article is not permitted without prior written consent and govern by all copyright laws.
Posted on: Tue, 01 Oct 2013 21:18:30 +0000
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