Sending a client to a Lender (who's also a realtor) for a Loan Approval

"Sending a client to a Lender (who's also a realtor) for a Loan Approval"

When clients buy a home, they go to a Realtor.

When clients need a loan, they go to a Lender.

What happens when the lender you refer to is also a Realtor? Well, that was a situation I recently encountered. I had a client who was looking to buy a home but does not have an approval letter. They asked for a referral and an agent within my office mentioned that he used this one particular lender who is really efficient. I spoke with the lender and interviewed him before sending my client over. So, I sent the client there and we got an approval letter to start the house hunting.

All is fine until I later discover that he also is a Realtor. My suspicion aroused when I realized that it was very difficult to get a hold of him. He later mentioned that he is normally out on the field showing properties so hence the delay in response. I was flabberglasted to say the least as I was wondering why is he showing properties when he should be working on the loans. He stated that his broker allows him to do both Loans and Real Estate.

I don't know how everyone feels but I find that to be "double dipping". I would not mind him doing the loan and real estate as long as the loan gets done. Knowing how real estate is a contact profession, I don't see how a lender can juggle doing both simultaneously. Based from my experience, the communication was great initially until he started getting "busy" showing properties. There were items and conditions needed for the loan and I could not get a hold of this lender to finalize the details.

A Jack of All Trades but a Master of None. Personally, I feel that if someone is a Lender that should be the only thing they do. If they are a Realtor, they should stick to selling homes. When the two lines of the industry gets crossed, there is a conflict of interest. The best thing to do in this situation is to find a Lender who strictly perform the duties of Lending.