reported that real estate agents have “a significant role in determining who writes their customers’ mortgages.” This was based on the results of a study, Key Factors in t s in the Referral of Homebuyers to Mortgage Originators , conducted by Inside Mortgage Finance that showed homebuyers rely on their real estate agent’s recommendation of a specific lender in ~33% of mortgage-financed home purchases in the U.S. The study arrived at this calculation through a survey of 1,800 real estate agents. Agents surveyed reported recommending a mortgage provider in ~60% of buyer-side transactions. The survey showed that their recommendations were accepted by homebuyers in about ~58% of transactions. This means that real estate agents influence 34% of mortgage-financed home purchases. Agents ranked factors that determined which mortgage providers they recommend. The top-ranked factor was “reliable pre-approval letters.” However, this also ranked first on their list of significant problems with mortgage financing. Agents ranked “returns phone calls and emails” and “reliable in meeting a closing date” almost as high as “reliable pre-approvals in recommending a lender.” Remarkably, “competitive rates” ranked fifth. While a prospective buyer’s financial information is confidential and generally not disclosed to the real estate agent, exceptions are clearly made when it comes to clients discussing loans with a trusted agent. As seen with the data above, real estate agents are often looked to by clients to recommend lenders. Real estate agents may know lenders whom they have worked with before and thus know that they are competent and effective. And, very importantly, real estate agents knows which lenders will get the “to-do” list done — on time.
27
Powered by FlippingBook