Realtors role in guiding financing decisions?

[CarolinaGal]

As a realtor, what is your role and responsibility to your client in working with their financing options? Are you not involved at all, or offer practical advise? Obviously the bulk work comes from the mortgage broker I understand.

I was reading this article and thinking "so when i'm a realtor (i'm starting courses next month) i don't want to feel any moral guilt for steering first time buyers into a potentially bad situation". Sure, they should do their homework, but if I can help then I would want to. Is it none of my business? I don't want to be one of 'those' who just watch out for their own best interest and throw a buyer to the wolves. Does that happen? I hope not.

Anyways ... good article, I thought.

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/18/AR2007081800089.html

[PaulChapman]

Find a good broker, end of story.

These days our industry is being thinned out and cracked down on so hard that in all honesty, the shady LO's and the bad loans are nearly non-existant.

[Malok]

I encourage the client to use whomever they have a relationship with currently.

If they would like me to furnish names, I give a list of 3 or 4 persons that I've done business with in the past - and have them pick/interview which one(s) they'd like to use.

[Shaune]

Obviously, you should be articulate in many mortgage terms. Maybe know what the current prime rates are and so on. But generally, just refer it out or as stated above use someone your buyers have a prior relationship with.

Also, do a little market research and make sure your purchace price jives with recent CLOSED properties in the area. I can't stand when a property didn't appraise and the realtor sends me current active listings to use as comps. Thats what those owners WANT their property to be worth, not what it actually is.

[PaulChapman]

I'll be blunt...

When a potential borrower asks me about rental markets, what part of town he should buy in, when he should buy etc etc, I give him a one line answer. "You know what ___ I have a great realtor you can speak with who can give you all of the answers to those questions, his number is xxx xxx xxxx."

The agents I work with have the same out look. When a potential buyer asks them what their payment is going to be, they give them a one line answer. " "You know ___ I have a great consultant you can speak with who can give you all of the answers to all of the questions you will have about your new loan, his number is xxx xxx xxxx."

It's a team sport, don't be a Kobe :D

I had to add a side note, it can be hard to find a good broker, but find someone you're comfortable working with, and are comfortable sending your clients to.

[rama1]

I am trying to build their trust first. Not always it does work. However, I have a 2-3 lenders that I know as honest and helpful and I certainly recommend them to these buyers.