Real Estate Referral Con Game

Never use a real estate referral from a real estate agent to locate your mortgage company as you may find yourself the victim of a common con game. Real estate referral cons can cost you dearly!

A real estate referral from an agent assumes the agent knows more about the mortgage process than you and therefore his or her recommendation is valid. After reading all of this website, believe me, you know more than any agent on the planet and most loan officers as well.

In addition, many, if not all, real estate referrals belay the agent having some sort of “relationship” with the loan officers they refer.

Either they have an actual relationship…wife, husband, girlfriend, boyfriend, mom, dad, etc. or they have a “financial” relationship. Neither of these relationships will be disclosed to you so you can’t really evaluate the merit of the real estate referral.

Being an insider for 15 years, I can’t tell you how many real estate agents only refer their wife (who mysteriously has a different last name.).

Or, the number of agents who asked me what I’d pay them for a real estate referral…this is totally illegal but that doesn’t stop them. Never just take the real estate referral without doing your own due diligence.

Reading this website or even better, getting educated by The Mortgage Advantage, to locate an ethical mortgage provider is the only way to insure you get the best provider rather than trusting a real estate referral from untrustworthy sources.

Good Luck!

Author: Rob K. Blake
Published December 28, 2007
Modified April 6, 2008

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