Qs for Realtor Insurance Agent and Mortgage Pro

October 15, 2012 67 Comments

Of course, every situation is different. However, Realtors, Insurance Agents, and Mortgage Pros will hear many of the same questions from almost questions-03every customer over the years. Preparation is the key. If you know what they are going to ask, then you should have your answers ready for them when they do, or AT LEAST know where to find the answers. The following is a new / updated list of common questions for each of the 3 professional industries that Sherlock Home Inspections gets most of our referral business from.

Hope this helps.

10 Q’s Every Realtor Should Be Able To Answer

1.) Can I see your references?
In the real estate business, word of mouth recommendations are as good as gold.

2.) Can I have a CMA for the area?
Every real estate agent should be able to give their clients a comparative market analysis (CMA), or a list comparable properties (comps) currently for sale and recently sold in the area.

3.) Is this area growing or declining?
As your clients’ window into the real estate world, you should be aware of what the growth and decline trends are, and help them find an area with a positive outlook.

4.) Do you work solo or as part of a team?
There are both positives and negatives to working with real estate teams. If your clients aren’t always working directly with you, be sure they know who to contact, and when.

5.) How many clients are you currently representing?
This is a tricky question. While there’s no magic number for how many clients an agent can effectively handle, a large number could indicate little one-on-one attention. On the other hand, too few clients could signal an agent who doesn’t have much experience, hasn’t been well recommended, or someone who treats real estate like a side gig from his/her real job.

6.) How will you market my home?
Posting a for-sale sign in the front lawn is all well and good, but sellers can do that themselves. Posting the house on Multiple Listing Service (MLS) is obviously beneficial, but every Realtor should do that. Print &/or internet advertising, open houses, etc. may be the tools to set you apart. What else (if anything) are you going to do?

7.) How do your realtor fees work?
Is your commission negotiable? If so, will clients have to sacrifice the level of service you provide?

8.) What experience do you have?
Can you brag about your list-price-to-selling-price ratio? What kind of experience do you have with this particular type of buyer / seller / property?

9.) How will you keep me informed?
Do you offer a daily / weekly update, or just on an as-needed basis? Will it be with a phone call, an email or both? How accessible are you when your client has a question?

10.) What are your concerns?
Both buyers & sellers know that it’s not always easy; if it were, they probably wouldn’t enlist your help. Be up-front and honest about any issues with the home they are buying or selling & / or any issues buyers may have getting financing.

6 Q’s Every Insurance Agent Should Be Able To Answer

1.) How much would it cost to rebuild my home in its current location in the event of a total loss?
What perils are excluded from the policy, that won’t cover the cost of building a new home from scratch?

2.) How much is the personal property in my home worth in the event of a total loss?
Do your clients need to conduct a home inventory?

3.) How much liability protection do I need?
Are there options for more or less? If so, what difference does it make to the client’s premium payments?

4.) What level of additional living expense coverage do I need?
Does the policy include Additional Living Expenses (ALE) provision for the costs of living away from home if your clients cannot reside there due to damage from an insured disaster?

5.) Should I buy a separate flood and/or earthquake insurance policy?
Do your clients need these or any other types of specialized coverage beyond their standard homeowners insurance policy?

6.) Do I qualify for any discounts?
Do they get any credits for smoke detectors, burglar alarms, dead-bolt locks, etc? What about if they get a Wind Mitigation &/or 4 Point Insurance Inspection?

15 Q’s Every Mortgage Pro Should Be Able To Answer

1.) Do you represent a mortgage broker, mortgage banker or lender, consumer finance company or a financial institution?
Whichever you are, why is that beneficial to your client?

2.) Are you licensed by the state?
If not, why not? Should that matter to your client?

3.) What is the interest rate you are offering to me and is it a fixed or variable rate? Is this the best possible rate based on my credit score?
Variable rates make more sense for some clients, be sure you know when & be able to explain why. Also, most informed borrowers know what Yield Spread Premium (YSP) is. Be prepared for this question.

4.) Are you locking my interest rate and, if so, for how long?
Be prepared to explain any rate lock fees and provide a written verification of the rate lock.

5.) What would be my Annual Percentage Rate (APR)?
You should know your clients’ APR & be able to explain why it is higher than the interest rate you quoted.

6.) What is the principal balance of my loan? How much money will you be paid?
You should be able to clearly explain that the loan includes the purchase price plus all fees, minus the down payment. You should also be able to clearly explain and justify your fees and ALL fees on the Good Faith Estimate (and the Truth-In-Lending Disclosure).

7.) How much will the monthly payments be? Does this amount include escrow for property taxes and homeowner’s insurance?
It is important to know exactly what your clients’ monthly payment will be. Just because the lender & their DTI ratio says they can afford it, doesn’t mean they will agree. There shouldn’t be any surprises at the closing table.

8.) What is the length of the loan? Is there a balloon payment at the end of the loan?
A good mortgage pro is not afraid of a 40 year term, or balloon mortgage, but knows how to explain them, and knows when they are right for their client.

9.) If I pay off the loan early, would I be charged a prepayment penalty?
If you did your job properly during the initial inquiry, and / or the “docing” when you collected your client’s supporting documents for the loan application, then you will have chosen the proper loan for your client.

10.) What is the appraised value of the property?
Know how to read an appraisal.

11.) If I pay for the appraisal, how do I obtain a copy of it?
Are your clients entitled to a copy of their appraisal? If so, during the loan process, or only after you have exhausted your efforts to get them a loan? Are they required to request the copy in writing?

12.) If I pay for the credit report, how do I obtain a copy of it?
Your clients should be provided a disclosure advising them of their right to receive information about their credit score. Be sure you know how they can do so.

13.) Am I required to have Private Mortgage Insurance (PMI)? If so, when will it be removed and what do I need to do to have it removed?
First, you need to know what PMI is, and be able to explain it to your clients. Then, is it automatically eliminated when equity becomes 22% of the original appraised value? Does your client need a new appraisal or are there other conditions for cancelation when that time comes?

14.) Who are you planning on using as the title agency? Should I purchase owner’s title insurance?
Many borrowers will let the lender or mortgage broker choose the title company. However, you should be clear that they have the right to use the title company of their choice – unless the sales contract stipulates a specific title company.

15.) Who do I contact to obtain the closing documents for the loan in advance of the closing?
You should be sure your clients have a copy of the estimated HUD settlement statement in advance of the closing to ensure there are no surprises at the closing.

67 thoughts on “Qs for Realtor Insurance Agent and Mortgage Pro”

  1. This is PERFECT. I am currently shopping on line for a Realtor & thought I’d just use whoever he/she recommends, but maybe not. I’ll have to ask each of them these questions to be sure i have the proper people representing me &/or helping me with the purchase of my next home. this information is truly priceless. Thank you so much!

  2. I’ll be buying a house soon & I plan to grill my Realtor, Insurance Agent, & Mortgage Broker with these questions – Thanks 😀

  4. Todd – your tips are always great, but this one is SUPER helpful – Thanks so much!

  5. I’ll be using this soon & I’ll be calling you as well once I find a place.
    Great info here – thanks!

  8. Great Advice! Nice of you to take the time to help your clients with other areas outside your industry.
    Thanks for the very informative post 🙂

  9. These questions are very important to ask AND for the professionals to know how to answer.

  12. Excellent advice here … thanks for posting. I will be sure to share with friends.

  13. My partner & I are buying a house & found this post very, VERY helpful!
    😀
    Thanks!

  15. Oh hell no!
    No you didn’t!
    Ima Realtor & I couldn’t answer some of these questions.
    Makes sense that I should MMM HMM
    Ima go prepare myself to answer them in the future.
    Thanks 😀

  16. YEP! Too many idiots out there who passed a test, got a license or certification, & they be mis-representin
    These questions will help you find the right pro who knows his or her stuff

  17. My friend recommended her cousin.
    I asked these questions & decided to keep looking
    THANKS!

  18. You would think that any professional would be able to answer these.
    I was surprised how many couldn’t before I found the right folks for me.
    This was VERY helpful
    Thanks

  19. This is great advice!
    I used these questions to weed out a new guy with no experience.
    Helped me hire the right person for the job
    Thanks 😀 😀 😀

  21. I have changed Insurance Agents 3 times in the past year.
    Asked the most recent these questions & I am confident that she knows her stuff & I finally picked the right one this time.

    Thanks for this inside info – super helpful 🙂

  24. Buying, Selling, Refinancing?
    You need to know this stuff!
    Todd’s Tips are amazing!
    Thanks for posting 🙂

  26. Saw this a little late.
    Sure wish I would have read it sooner.
    Real Estate buyers need to know this stuff

  27. DO NOT hire a Mortgage Broker without asking these first.
    Looks like probably good Q’s for Realtors & Insurance Agents too.
    But Mortgage Broker FOR SURE!

  31. I spoke with SEVERAL mortgage guys before I found a real pro who knew his stuff.
    I’m not suggesting it’s easy to get a license, but it’s scary how many IDIOTS are working in that industry!

    33. VERY IMPORTANT

    to ask these questions to be sure you have the right people working for you.

  43. Great post. I’ve read several others here on the Sherlock home inspections site under Todd’s Tips.
    They are always very helpful.

  44. I noticed this a while back.
    Used it 3 times with great success.
    Absolutely HAD TO come back & add my comments…

    My mortgage guy couldn’t answer – fired him…
    Asked several Insurance Agents before finding the right one…
    Realtor was a friend, but even she couldn’t answer ALL of these questions.
    She got me the answers & asked for the article.
    Her broker educated the whole Real Estate office.

    This is a MUST READ for anyone buying a house!!!
    5 Stars * * * * *

  49. DRRR – We always just assume that these people know what they’re doing, but this way we can be sure.
    Great Post !!! Thanks 🙂 🙂 🙂 🙂 🙂

  50. HA – good stuff. I wonder how many idiots are in that line of work, but can’t answer these simple questions.

  53. WOW – this was super helpful.
    I need a list of questions like this for every so called “professional” I consider hiring.
    Thanks!

  55. This post was SUPER HELPFUL
    I asked these questions to weed out several folks who sounded good, but obviously didn’t really know their stuff.
    I am now confident that I am working with the right people.
    THANKS!

  56. If you are going to be working with a Realtor, Insurance Agent, or Mortgage Pro BE SURE to ask these questions!!!

  66. These questions are absolutely key.
    You GOTTA make sure they know what the are doing before you hire them.
    THIS IS HOW

  67. Absolutely excellent content!
    Thanks so much for posting.
    This article has helped both me and my brother when we purchased new homes here in FL
    I will be sure to share with others as well.

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