Realtors and lenders may work in the same industry, however they are anything but competition. Actually, due to the distinct assets that both roles bring, loan officers and realtors often are more effective — and more successfully — together. At Cornerstone, we've seen opportunities to help our realtor partners improve their profits in at least six different ways.
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Can a mortgage lender help an agent sell? 6 partnership payoffs
Only about 23 percent of home sales at the begining of 2020 were cash sales, confirms the January 2020 REALTORS(R) Confidence Index Survey Report. And unlike sales for investment properties, second homes, and distressed sales, first-time buyers are much less likely to pay in cash. This means that around 80 % of times — so when working with first-time buyers, the amount is significantly higher — an agent works closely having a loan officer to help a buyer fund their purchase.
When a realtor gets support from the loan officer beyond basic funding, a special synergy can happen. This partnership will come with benefits like:
1. Increased business.
“One of the biggest causes of a realtor's business should be referrals from past clients,” Brian Bomar, Regional President of Cornerstone Home Lending, Inc., NMLS ID 191018, says. Eighty-two percent of property sales originate from previous clients, referrals, family and friends, and private contacts.
“Hands down,” Bomar says. “The most important key to getting referrals is to give a great experience. Partnering with a great lender is among the most important way to ensure a regular, lights-out experience for that homebuyer.” As Bomar explains, the world is transitioning increasingly more to an “experience economy.” People will forget several things after they move into a house, he states, however they won't forget how they felt.
As loan officers and realtors working side-by-side, we are able to make a list of these questions on behalf of the buyer:
- Were we polite and encouraging?
- Was the procedure quick and efficient?
- Did the customer feel informed and confident as the transaction progressed?
“The speed, follow-up, and trustworthiness of a strong lender partner can greatly enhance a realtor's business by providing them better communication, more negotiating power in offers, and overall stronger collaboration to assist bring things together,” Bomar says. This all results in more past client referrals and, overall, more business.
“Cornerstone does indeed cause you to feel special. Another beauty of my job is that I recieve to work from home.” Can there be room for you within our Cornerstone work-family?
2. Thorough prequalification.
Nothing could be more stressful for the realtor than getting a buyer prequalified, preapproved, and funded to close on a house. It's a waiting game with expected delays.
“Our company gives me the opportunity to develop strong relationships with realtor partners. We constantly add value that goes beyond closing loans,” Daniel Tokar at Cornerstone, NMLS 1098658, says. “I bring additional value to my realtors by providing a second look at offers made on their own listings.” This provides the realtor with the comfort that the mortgage prequalification ended right and provides the realtor and the seller reassurance it'll close without hassles, Tokar explains.
3. Fast prequalification.
When your competitive seller’s market, speed can be the difference between making the sales and passing up on a deal to some faster buyer. Whenever using our realtor partners and our borrowers, we pay exceptional attention to detail, and keep track of the time. Noisy . prequalification phase particularly, we recognize the “need for speed.” Realtors would like to get their buyers prequalified quickly to find out how much house they can afford to allow them to start hunting.
Cornerstone has invested heavily in technology that enables us to deliver faster prequalifications and loan commitments, Toby Roberts at Cornerstone says. “Quicker approvals mean buyers are 'empowered' to create purchase contracts. Everyone knows 'time kills deals,' and Cornerstone may be the market leader in speed/execution.”
Better, faster, friendlier — our borrowers are using LoanFly to prequalify fast and fly into their mortgage.
4. Marketing support.
Inside a word-of-mouth profession like property, marketing support can be invaluable. Today, 88 percent of first-time buyers use a realtor, and 33 percent of these first-time buyers start researching online — whether for a house, an agent, or a lender. Connecting the dots in the housing search can increase a homebuyer's purchase power while making for a simpler and much more positive buying experience.
Cornerstone and it is affiliates have grown to be the largest non-bank lender in Texas, and one of the very most competitive lenders in america, by revolutionizing their marketing techniques:
- Cornerstone has invested heavily in marketing, especially around social media.
- Cornerstone’s social networking platform allows Cornerstone Loan Officers to aggressively market properties while ensuring proper compliance. “Aggressive marketing is a 'must have' in today’s housing market,” Bomar says.
- Whether it's providing co-branded ads or lead follow-up through our robust CRM, Cornerstone gives loan officers the time to engage in realtors' businesses, Tokar explains.
5. Proven track record and reputation.
Marketing support could be required for the numerous realtors looking to expand their sphere and gain new connections. But as Inman News' 2020 special report, “What real estate brokers and agents want from lenders,” so boldly asserts, promises mean nothing if a lender can't take their money where their mouth is. In the report, 79 percent of realtor respondents said they currently do not get leads from a lender partner. But roughly 74 percent of realtors surveyed said they wish to receive leads — as long as they're from a lender they know and trust.
For loan officers like Tokar, this trustworthy partnership becomes the beginning of a long-term relationship. “I have some agents for which I only do their listings – I don't inflict buyer handles them. But I review every offer which comes in on their properties. They already know the lending company they trust provides all of them with a second overview of their loans,” he says. “Not only do we look at the application and sign off on it. There is however a high probability we'll also fund the loan on their behalf.”
And often, the value of the connection wins out over the worth of the dollar, even in a competitive industry like housing. Bomar says, “We routinely have clients who find out their offer wasn't the best, however it was still the one accepted because the listing agent felt the offer was a lot more solid knowing Cornerstone Home Lending was behind it.”
6. Going the extra mile.
With the countless local and national lenders available, just how can a realtor know which partner to pick? What Tokar frequently finds himself telling the realtors he partners with is that this: “Every lender represents that they have great rates, compensation, and closes your finance on time. Most of us have those things and more! This can be a company built on the foundation of a common sense method of getting loans closed and backed by a culture of cooperation and service. What else could you ask for?”
If you are in necessity of support from the lender, we'd love to welcome you into the Cornerstone family of partners. Our mission has and try to is to transform individual lives through lending. This really is reflected within the relationships we cultivate with this associates, our industry partners, and our borrowers. When managed well, the Inman News special report estimates that real estate agents can get to see up to a 20-percent capture rate from a successful mortgage lender partnership. Make contact with a Cornerstone loan officer in your area to find out how we might help.