During the buying process, it is inevitable that clients will ask you questions about mortgages that you may not feel qualified to answer, and that’s okay. When questions like this come up that fall outside your scope, it’s crucial to maintain professional boundaries, while keeping a helpful and friendly relationship with your client. There is so much to know when it comes to mortgage knowledge and products, and it is ever changing.
Keep some basic knowledge in your back pocket.
That’s why it is good to have general knowledge of the following:
- General process timelines (for example, getting pre-qualification before searching for a home, how long these pre-qualifications are good for, how long is realistic for a subject removal date for the lender, etc.).
- The difference between pre-qualification and pre-approval. As a reminder, pre-qualification is a less involved preliminary step typically based on data provided to give a ballpark estimate of how much someone can borrow, whereas pre-approval is more involved and includes submission of supporting documents, as well as a review of the client’s credit bureau, to get a clearer picture of what they can afford.
- Stipulations around certain property types (for example a premium to the rate on a mobile home, or the need for a well and/or septic test on a more rural property).
“ ”
Real estate agents and mortgage brokers should be forming alliances wherever possible to provide the ultimate home buying experience for the client.
Kyra Park
Mortgage Broker at DLC Modern Mortgage Group
How to gracefully point clients to a mortgage broker.
Still, there will likely be questions that come up from your client regarding things like rates, loan products, payment amounts and debt-to-income ratios that should be left to your mortgage partner to answer. You can make the transition to your mortgage partner seamless with a reply like:
“That’s a great question and it’s important to get accurate advice on that. Since mortgage products and financial details vary depending on your personal situation, I’d recommend speaking directly with a mortgage broker. I can refer you to someone I trust if you’d like.”
Or, “I work closely with an excellent mortgage broker, would you like me to connect you?”
Early education can also be helpful in letting the client know what they can expect from you in the process:
“I'll guide you through the buying process, including negotiating and finding the right home. For all financing details, like rates and qualifications, your lender or mortgage broker will be the expert to guide you there.”
A strong relationship with a mortgage broker makes the journey smoother for everyone.
By having a trusted mortgage partner that you consistently rely on, you will likely have a clearer picture of their practices and what can be expected from them for both you and your client throughout. In turn, this will help you better educate your client on what they can expect. Whether that’s sharing pre-qualification amounts for the client, daily check-ins, updates throughout the progress of the file, turnaround times, etc., there should never be a point during the transaction where you are in the dark with your broker.
Having a strong relationship with an excellent mortgage broker is often overlooked. Clients care about their finances; they want to know where every penny is going and what the best option is for them. Having someone on your side who can assess the nitty-gritty of each client’s particular financial situation and provide a creative solution is of utmost importance.
This will also help pre-emptively answer questions like: “What’s the best loan for me?” What’s my monthly payment going to be?” or “Can I qualify for this price range?” Working with a trusted mortgage partner means you can be sure your client is set up for success for their house hunt. If it’s been a while since they were originally pre-qualified or they’re still unsure, the best answer you can give them is, “Let’s have your broker update your pre-qualification, that’s the best way to know for sure.”
Real estate agents and mortgage brokers should be forming alliances wherever possible to provide the ultimate home buying experience for the client. These two professions go together like peanut butter and jam, or Batman and Robin, and forming a trusted partnership should be a top priority.
