Apr 03, 2012
Realtors have major input in lender choice
03 Apr 2012
Posted by Andrew Kantor
A third of homebuyers turn to their real estate agent for help choosing a mortgage lender — that’s what a new study from Inside Mortgage Finance found after surveying 1,800 agents in January.
The new study suggests that real estate agents play a particularly important referral role in a housing market where financing contingencies have become a way of life.
A few facts:
- When they represented a buyer, agents recommended one or more mortgage providers nearly 60 percent of the time.
- More than three-quarters of those agents recommended more than one firm.
- Homebuyers accepted the agent’s recommendation 58 percent of the time. (The math means that “real estate agents control or influence 34 percent of mortgage-financed home purchases.”)
- The top reason a buyer wouldn’t take a Realtor’s recommendation: “existing banker relationship” (which might be as simple as a pre-approval letter).
- Although most firms had “lender partners,” only 16 percent of buyers got a mortgage from one.