Gift ideas (Realtor, LO, etc.)

[Anonymous]

I've seen some discussions like this elsewhere on the 'net.  Just curious... Has anyone gifted their realtor and/or LO/broker after closing? 

We have a unique situation with our realtor in that she dealt with us for well over a year.  She spent a ton of time with us, and then in the end we decided on a house for which she was the selling agent.  That meant she couldn't represent us, so she worked something out with another realtor at her firm.  I'm sure she's being compensated well, but we are probably going to gift her a nice trip to a local spa or something similar since she's been put through the ringer.

Thinking about a decent little gift basket or something similar for our LO and his assistant.  Kind of hoping for a better idea than that though.  Don't want to spend a ton of money, but I feel like these people should know how much we appreciate them doing what it took to get things done.

[JM-AM]

That is a nice generous thing to offer..

The truth is none of them are suppose to accept any gratuity at all from their clients. While some do take from their clients, I wouldnt make it public knowledge.

While it still wouldnt be the right thing for them to do to accept a gratuity from you, if you were to offer them something, you should let a little time pass before doing anything.

Not sure how much your home is you are purchasing, but you can bet they are making a decent amount of money on that deal once it closes. No real reason to give them anything additional.

You want to do something nice for them because they worked with you for a long time and hung in there with you? Then refer friends, family, co-workers, acquaintances when you know they are in the market. Nothing better then a good honest referral.

[Anonymous]

Good stuff. I was under the impression my LO was only making about $990 on the deal. At least that is the origination charge listed with our breakdown. The loan total is around 232k.

I'm sure out realtor is making a nice commission because of the aforementioned arrangement. Do you think the LO is only getting the $990 though? I guess that's really not too bad. Maybe we will just send him and his assistant a small gift basket anonymously or something.

[JM-AM]

Are you using a Bank? Credit Union? Mortgage Banker? or Broker?

[Anonymous]

They are a regional mortgage bank that covers most of VA and a little of NC.

[JM-AM]

The LO is most likely on salary and getting a few dollars for writing the loan. The amount can vary because it gets bonus on each loan and a bonus on volume. Guesstimate the LO is making between 50K-150K a year depending on different factors.

The bank made the profit on Origination Charge, and the YSP charge which is never mentioned and could be several thousand, and then they can and most likely will sell your loan and make even more money. There are a few that will service and keep your loan or just service your loan and still sell it, but its not often today.

[Anonymous]

I have been trying to figure out if YSP played a part of our loan. They sent a packet along which broke the charges down right after we entered contract on our home. I couldn't find anything in there about it, but I have read about how much it can add to closing costs.

All told, our loan is around 228k where 6500 are closing costs. We have another 2% of the total in there which has to be paid back into USDA

[Anonymous]

Also I think you are right in that they will sell it. Their overlays are very aggressive. I asked about it early on. He kind of danced around it in regards to us specifically but did indicate they sell them.

[JM-AM]

99% of loans have a YSP, and even more so when dealing with a Banking Institution.

Since I have the option to write loans as a Mortgage Banker, I always credit back my Origination Charge, so how much I charge you in Origination means absolutely nothing because I give it right back to you as a credit. I do this because I am not full of GREED, and just make my money off of the YSP. Sometimes If needed I credit part of the YSP if it helps the client to get his deal done. Half a loaf is better then no loaf at all, and I build a great relationship and receive referrals for doing all I can for them, and saving them money.

If I Broker the loan out there are times I actually make more money because the Lenders discounts to Brokers is a considerable discount.

Just on your loan, same scenario, same fees, etc etc I would have made over 8K.

Your Realtor about 6K possibly a little more or less.

Sellers Realtor also about 6K possibly a little more or less.

[MovingForward_2012]

A good gift for the realtor would be a nice basket of snacks because they are always on the go.