Your Realtor gives you the name of two lenders and suggests you work with them to get a loan. Now, there are lots of lenders out there so why would they pick these two? To ask the question another way…what’s in it for the Realtor? What kind of kick back are they getting and is their recommendation best for you, or for them?
You as the client have the right to know about any business relationship between the Realtor and the mortgage broker. Furthermore, a federal law passed in 1974 prohibits the mortgage broker from giving kick backs or anything of value to the Realtor in exchange for there referrals. This law, called the Real Estate Settlement Procedures Act (RESPA), also requires full disclosure of any affiliated or shared ownership business as well as the submission of good faith estimates to you on closing costs. If you would like to learn more about RESPA see this link: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm
Now, should you trust your Realtor when they refer you….the answer is hopefully. Hopefully, you have a chosen an ethical and experienced Realtor who is working within the law and with YOUR best interests in mind. Nevertheless, it is your responsibility to make the final decision as to whether to take their recommendation or not. It is always a good idea to ask the Realtor why the have picked these lenders to refer you to. If they say it is because they have a great track record of professionalism and closing loans then that’s great. On the other hand, if they say that the lender is there brother in law, maybe it’s not the best choice.
If you have questions about Real Estate referrals or anything else regarding Summit County Real Estate please feel free to contact me anytime at the information below.
All the best,
Tyler MacGuire
Broker Associate
Broker Associate
Omni Real Estate Company
Cell: 970-409-7779
Email: tylermacguire@hotmail.com
"Your Guide to Summit County Real Estate"
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