How Mortgage Companies Can Help Real Estate Agents Close the Deal, and So Much More
By Nicole Rueth - November 20, 2019
Home equity is the biggest financial asset for American homeowners with 64% who view their home as a financial investment, Zillow’s Consumer Housing Trends Report 2018. Yet more than half of buyers worry about qualifying for a mortgage, and just over half put down less than 20 percent on their purchase. Mortgage lenders can streamline the mortgage prequalification and preapproval process for clients, and are now an essential part of the homeownership process. Lenders need to work closely with real estate agents to keep clients happy, as lender-agent relationships are more important than ever to move quickly through hot real estate markets.
Traditionally, real estate agents and mortgage companies have worked separately within the same industry. Now, as speed is the name of the game in hot real estate markets like Denver, there are noticeable benefits for agents and lenders who work together to support their clients. These include support for agents to secure closings more consistently, faster pre-qualifications, financial awareness and strategic advice, and the possibility for more referrals.
Here are a few of the reasons why a partnership with a mortgage lender is beneficial to agents:
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It can lead to more referrals and a more seamless experience for your clients.
As real estate agents, per an Outbound Engine survey, 75% of your clients come from referrals. The easiest way to expand your network of home buyers and sellers through word of mouth is to provide top-notch service with zero hiccups. Walking clients through homes is the fun part; getting clients pre-qualified and processing financial documents is where many agents run into problems and unexpected surprises. Creating an A team with a top mortgage lender will stop the surprise and increase the referrals.
Speed matters for pre-qualification in hot markets.
In hot real estate cities like Denver, the average home stays on the market for less than a month according to Denver Metro Association of Realtor’s October Market Report. As your clients face pressure to make big decisions faster, they need to be prepared and pre-qualified. If your client hasn’t been pre-qualified, spoken with your lender about their loan options and budgeting, your client is already too late. In a hot market, assume another client is preparing an offer on your client’s future home.
Having a close, strategic relationship with a mortgage lender ensures your client gets the results as quickly and thoroughly as possible.
Realtors should leverage the mortgage lender’s marketing investments.
As a real estate agent’s business comes from word-of-mouth, mortgage lenders invest heavily in online marketing. According to the National Association of REALTORS®, 50 percent of 2018 home buyers found their home over the internet, while 28 percent found homes through their real estate agent. Assuming this trend will continue, real estate agents can take advantage of lenders who have strategic online resources when agents often don’t. As a lender’s sales channel often begins online, we concentrate our advertising and marketing resources there and invest heavily in digital and social advertising, which can be invaluable to real estate agents.
The Rueth Team goes further by hosting events where current and potential clients are invited to learn more about the process and meet with our team face-to-face. The Rueth Team hosts three classes throughout the month which are geared to investors, first time home buyers, and real estate agents, including “Building an Investment Empire,” “Market Trends,” and “Agent Ignite.” These events can be invaluable to agents who are looking to expand their network.
A proven track record and reputation assures clients they’ve made the right decision.
With a great reputation in the Denver metro area and beyond, The Rueth Team at Fairway Independent Mortgage goes above and beyond for their clients – and those clients remember. Once a relationship has been established, we refer clients to agents we trust, who we know will get the job done well.
If you’re a realtor looking to up your game and work with an established mortgage lending team, The Rueth Team is here to assist. Don’t hesitate to reach out today!