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In this article, we discuss why loan officers and real estate agents do not get along and what they can do to foster a better relationship.
Have you ever heard your realtor say your loan officer messed up? Often fueled by frustration, loan officers and realtors tend to not get along. You may have even seen this when buying a home yourself.
In fact, a recent survey of more than 250 loan originators in the United States showed that loan officers often had a negative sentiment toward real estate agents. Participants were asked to describe the average realtor. Unsurprisingly, the top five replies were, condescending, nosey, aloof/elusive, untrusting, and stressed out.
If you have ever been through the home buying process, you may have seen experienced this first-hand. Perhaps your real estate agent blamed things on the loan officer or vice versa. As a home buyer, it's incredibly frustrating when two key players in the process don't get along.
It's quite unfortunate when realtors and loan officers don't get along. What these two groups fail to realize is that by working together, they can foster a mutually beneficial relationship. In this article, we discuss why loan officers and real estate agents do not get along and what they can do to foster a better relationship.
Loan officers can be quick to stereotype all real estate agents based on previous bad experiences.
Holly Gustlin, a loan officer in the residential mortgage industry, explains that many loan officers do not like working with realtors because some realtors have a tendency to be over dramatic. She explains, ''They often attack the loan officer or escrow agent if the escrow doesn't go as planned.''
Understandably, this is usually out of frustration, and unfortunately, real estate agents could be quick to take out their frustration on the person closest to the project at hand - the loan officer.
With this being said, Holly Gustlin explains that there are only a handful of agents that fit the stereotypical ''drama queen'' mold; ''I know many realtors who are honorable, reasonable, and great to work with.'' Once a loan officer finds a great real estate partner, she continues, this partnership can flourish into something beneficial for both the loan officer and the real estate agent.
Peter Buchsbaum, Senior Loan Officer at Northeast Equitable Mortgage, LLC, agrees with Gustlin. As a lender for over 42 years, Buchsbaum understands the importance of having a good relationship with realtors. In fact, his biggest referral real estate agents treat him respectfully and he says he has only seen a handful fit the cliched real estate agent persona.
Buchsbaum explains that the problem lies within the system.
''The system itself breeds resentment. Lenders need to have a license to discuss interest rates and loan terms but a real estate agent can discuss rates and loan terms with a borrower. Lenders license's comes with yearly continuing education, credit checks and a capped income. A real estate agent has continuing education requirements every two years and there is no credit check and no limit as to what they can earn,'' Buschsbaum explains. No wonder there is continued resentment between these two groups.
Conversely, real estate agents will often complain about loan officers.
Real estate agents will often get phone calls from loan officers an average of 35 times per week with claims to help them build their business or give them more referrals. However, how often do loan officers follow through?
The vast majority of real estate agents claimed that loan officers did not follow through with their promises of referrals and new business. Even if half of loan officers followed through on their broken promises, they would not need to work as hard to develop new relationships. Instead, real estate agents would be seeking out rock start loan officers to develop rapport with.
It's incredibly important for loan officers and real estate agents to learn how to keep the peace. Long-term relationships with real estate agents can lead to more referrals, which will help volume up for loan officers. Like any relationship, strong business relationships take time and effort, but these relationships can make a world of difference in your success. Here are some ways that loan officers and real estate agents can improve their affairs.
In order to get along, realtors and loan officers have to realize that they are on the same team. By fostering a stronger relationship with each other, real estate agents and loan officers can ultimately build a stronger foundation together. Real estate agents ultimately want to make their clients happy and they will gladly push business to a loan officer that helps them achieve that.
Both loan officers and real estate agents can benefit from being accountable for his or her actions.
Accountability is crucial if loan officers are looking to attract the best real estate agents. Loan officers should be responsible for reliable on-time closings. This includes setting up realistic expectations for everyone involved in the process. Any professional real estate agent will understand that you have limitations. It's imperative that expectations are set ahead of time to avoid any confusion.
Like any relationship, communication is key. If real estate agents and loan officers develop strong and clear lines of communication, their mutually beneficial relationship should grow stronger.
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