Loan Officer Advantages vs. a Realtor
Realtors seem to juggle a lot more tasks….i.e. constant marketing to attract new clients, giving listing presentations, broker price opinions, showing homes, weekly or bi-monthly follow-up, price reductions when there are few offers, negotiating contracts, dealing with property inspector, title company, the real estate appraiser and movers.
Realtors don’t have a set work schedule; and typically work many evenings and weekends as their clients have more free time to review available properties and sign a contract. Sometimes a prospect will want to know the specifics about the flooring, plumbing, easements, flood or fire insurance and the realtor is the go to person, or it will be the realtor that does know.
Some realtors who are better at managing hire their own buyer’s agents, transaction coordinator and closing professionals to provide them more time in the important areas of the business. By doing so, the top producers earn excellent incomes.
As a result, a mortgage originator could have a more balanced life and enjoy more career satisfaction. U.S. News and World Report placed being a loan originator as #44 on best career jobs.
However, consider the following scenario. If a realtor has a hot prospect who decides they can afford a higher priced home than the prequalification letter says that they will call you but you don’t answer the phone, then they’ll call the other loan officer that does answer the phone.
In terms of work, Real Estate Agents still have it harder than Loan Officer’s. A lot of work is involved when trying to put together a deal.
An Loan Officer can punch in a scenario and say yes it can work, or no it can’t. Other than that, they deal directly with the buyer to retrieve necessary documentation.
Real estate agent’s deal with everyone, keep everyone happy, keep the deals smooth and yell at people when they need to be yelled at. The Real estate agent also does all the driving and coordinating of inspections! Most Loan Officer’s do not attend closings.
However, in recent times, loan officers are claiming that realtors definitely have it much easier with little to no regulations directly impacting them as it does loan originators. With the Financial Reforms from the housing crisis years ago forming the CPFB, Dodd-Frank, commission reductions, QM requirements and “ability to repay”, the disclosure requirements, it’s become overwhelming for some originators to work efficiently as they once did.
Getting financing for a transaction is not like it was a few years ago. However, most loan originators will do just fine if they nurture their existing professional contacts and make new ones. Business relationships have become a lot more important in the mortgage business than ever.
The real estate agent you’ve worked so hard to get as a referral partner sees you as worthwhile as your last deal. If your deal doesn’t close, or if it gets delayed in underwriting for something trivial, the relationship dies and so do any referrals from that agent or those in their office. Fortunately, there are other professionals they can procure business from to offset any losses so they can have career success.
An added bonus is the loan officer is not restricted geographically. Because of their state license and technology they can originate loans throughout the state and never have to meet the client face to face. Furthermore, their business can be scaled dramatically by becoming licensed n multiple states or working under a federal bank.