As we discussed in our last blog article, there are a lot of moving parts in a real estate transaction. One problem can ripple outward and affect every party involved in a home sale—potentially affecting multiple contingent purchases and sales.
Undoubtedly the two most stressful parts of a real estate transaction are the home inspection process and the mortgage loan. When something goes wrong with a mortgage loan during the underwriting stage, it can really throw everything off track for both the buyer and the seller. Mortgage lenders solicit The Cyr Team and our fellow real estate agents just about every single day. We have certain local lenders that we trust and we are always open to finding new mortgage referral partners. It can certainly be mutually beneficial when we have full faith in one another to get our respective jobs done well.
With this in mind, we’ve compiled this list of things that mortgage lenders do that really frustrate us real estate agents. If you want to work with us, you will want to avoid these 6 bad habits:
1. Unrealistic Expectations
Any vendor that over-promises and under-delivers will earn a black mark in our book. Lenders will sometimes promise really quick closing dates and lending options that they can’t actually deliver upon. This puts everyone in a bind when deadlines can’t get met and the various parties are scrambling to resolve last-minute issues. Be honest with what you can provide and when you can make things happen. It’s better to have realistic expectations set upfront, so there are no disappointments later.
2. Too Much Solicitation
You’re busy. We’re busy. Everyone is busy. It’s okay to have a contact list and a follow-up system to promote your services and stay in touch with agents—especially if they’ve opted into an email list or you’ve worked well with them in the past. However, there is a point where it becomes too much. Getting call after call and email after email is annoying, so find a happy medium that allows you to reach out periodically without smothering us. If we already trust you and want something from you, we’ll let you know.
3. Lack of Clear Communication
The opposite of #2 is true when an actual real estate transaction is taking place. If one of our clients is working with you on a home purchase, we want you to be in constant communication. Provide updates, answer questions and offer helpful information throughout the lending process so that the client and their agents are always informed and up-to-date. Try to make things as clear as possible and make sure everyone understands what you are saying. This helps avoid confusion and misinterpreted expectations. If you disappear for long stretches at a time, then it creates feelings of panic and fear that something has gone wrong. Never keep people—especially the borrower—in the dark.
4. Not Being Proactive
On the heels of #3, it’s important that a mortgage lender be as proactive as possible throughout the home loan process. If there are potential problems or hurdles to overcome, let all the affected parties know as soon as possible so there’s time to find a proper solution. Being reactive and slow to address issues will only result in more frustration and anxiety as the problems get further along and harder to resolve.
5. Not Putting Clients First
They say the customer is always right, but not all mortgage brokers would agree. At least it doesn’t show in their actions. We care about our clients and we expect any mortgage lender we’re working with to care, as well. When we know that our customers trust the loan officer they are working with, we are more likely to establish a long-term referral partnership. If our clients have a bad mortgage experience, it’s fairly easy to understand why we might be hesitant to recommend that lender again in the future.
6. Forgetting that All Agents Are Different
All borrowers and all agents are different. There are different personalities, preferences and ways of communicating. As a mortgage lender, you need to adapt your approach with each person you are dealing with, just as we try to adapt as real estate agents when dealing with all the different parties involved in a real estate transaction. We understand that not all lenders are the same either, so success is all about finding the most effective way to work together.
We work forward to working with mortgage lenders throughout the areas we serve, including Southeastern Pennsylvania, Northern Delaware and Southwestern New Jersey. If you do business well and treat your customers right—in other words, avoiding these common issues above—we’d be happy to develop a referral partnership. If any of the above things describe your approach, then we’re probably not interested.
The Cyr Team is a leading local real estate team led by Vincent & Jane Cyr. If you are buying or selling a home in the area, or you are a mortgage lender who would like to know more about our service approach, contact us today!
The content for this article was inspired by and article we read on Inman.com