Loans through Realtors

Do realtors usually set you up with their contacts for mortgage loans? I have a great mortgage broker contact I would like to use, but if I am using a realtor do I have to use the financing that they set me up with? Thanks!

I am a Realtor In massachusetts, & I undestand that you can use anyone you want. You also have the ability to get quotes from different lenders so they are competing for your business. Just make sure your getting all the info you need as far as points & closing costs. The lenders can give you a copy of a settlement package with the cost for various things such as title fees, attorney fees and so on, most of them are standard. There will only be a few items on the settlement statement that will vary. When a lender says no points they sometimes will add in extra costs on the settlement or increase the intrest rate. Its the old fasioned way of comparing apples to apples just as you would compare a V6 in a car to a V6 not a V8. Even if you have a great broker keep him honest he may be able to do a little beter for you & help explain some of the differences. The only reason I recomend using a specific mrgt. broker is we can rely on them to have specific documents that are needed due to a contract agreement by a certain date, that if not recieved, the buyer could loose what ever is on the line $$$. I always advise getting multiple offers, & I let them know that my broker will 9 times out of 10 beat what they have received. I hope this helps. :slight_smile:

Thank you for the quick reply, yes this helps alot!


I don’t know about other REALTORS, but I have a few mortgage folks which I recommend. The reason for this is that they will not drag their feet or foul something up, because they see me as a future source of business.

A mortgage pro may see Joe Homebuyer who walks in off the street as a one-shot deal and may shortchange him on time and effort.

It’s always best to get multiple offers from different brokers. You also have to take reputation into account. A Realtor will probably steer to someone that’s going to give you a decent deal. Most mortgage brokers have a little room where they can match or beat another rate. If you don’t have that other better rate, you’ll never know if you could have done a little bit better. Difference might only be 1/8 or 1/4 point but it can add up. In the mortgage industry there’s lots of stories about predatory practices. Typically you get a really great quote over the phone from a guy, but then you go to closing and it’s a totally different rate. No paperwork backing up the original quote means you can’t sue (well you can sue but he said/she said probably doesn’t go too far) and you get stuck on a higher rate. A Realtor and a mortgage broker looking for repeat business isn’t going to be doing that and if they’ve been in business for a while, that’s probably a good sign. You can also check to see if everyone is licensed in their state and see if they have any complaints. Oh and a Realtor is going to want to see the deal close, if it doesn’t close, there’s no commission so whoever they recommend, they probably won’t screw up the deal.

Shop around a bit - you aren’t required to use any specific broker. As stated earlier though, using the realtor’s contact could mean a more streamlined process.

Shopping around is a good idea and you can do alot of that online if you do not have the time to get out about to visit the local companies. The internet is such a great invention :smiley: