“Hi Gary. My husband and I met an agent at an open house. We liked her and want to work with her to find a home. But she also said she can get us the loan. I’ve never heard of that. Do agents also get people loans?”
Answer:
This is less common than it used to be. But unfortunately, to make more money, some agents still do it. And for that matter, again unfortunately, some mortgage lenders also like to “play” real estate agent and try to find people homes.
Why “unfortunately”? Two reasons:
- Lack of skill.
- Conflict of interest.
Let me explain…
1. Lack of skill:
While mortgage lending and homeselling are related, they’re really two entirely different jobs with entirely different skill sets.
There’s so much required to be an excellent Realtor and a terrific lender, it’s rare to find both in the same person. I’ve met perhaps two.
So when the agent/lender doesn’t know what he or she is doing, it results in delays, stress, problems, money lost, homes lost, escrows cancelled, etc.
I can tell you sad story after story after story, but I think you get the point.
2. Conflict of interest:
Due to #1 above, often the agent/lender botches the loan. But even if it appears they can’t fix it, many refuse to allow another lender step in and get it done. They don’t want to give up the loan fee they hope to earn. Again, this has cost their clients homes.
Bottom line:
I don’t fault someone from trying earn a buck. But when so many people depend on them for such a key moment in their lives, then they need to do what’s best for the client, not themselves.
So take my advice and avoid agent/lenders!
