Can we be both Realtor & Loan Officer in one deal?

Question

I got my real estate licence a couple of years ago and my loan agent's licence been only for a couple of months so I'm farely new to this business. so far my real estate deals have been separate from my loan deals because I heard that it would be a problem if you're acting as both in one deal. The problem is when I do the real estate and I give the loans to someone else, the deals doesn't close as smoothly because the loan agent I work with charge a higher fees than I would normally do, and it has upset my clients. My mortgage broker has offered me to use his name on the loans and told me I can do same thing as what the loan officer normally do, but for some reason I'm not very comfortable doing it.... any suggestions from experienced real estate / loan professionals would be appreciated...

Answer 1

It sounds like you are trying to be an honest person in your business transactions. If I were you, I'd let my clients know I offer both services and give them a choice. There's nothing wrong with holding a real estate license and being a loan officer as well. I'd even disclose how much you intend to make off each deal. Nowadays...people feel more comfortable when your upfront and honest. Let your clients know they can trust you.


PS
When you don't feel comfortable don't do it!!! You will be successful.

Hope this helps...

Answer 2

You can act in both capacities so long as you disclose to your client that you are getting paid on both deals. Otherwise, it would be a conflict of interest. Most LO's doing real estate deal have a standard disclosure form that they get all parties to sign. A conflict of interest is bad only if it is not disclosed....this allows the buyer to get another LO if they want to.....