Dumb Question - Title Attorney (Realtor's or Lenders)

7 Replies

I'm getting pressured from my Realtor to use his title attorney and my lender is suggesting his title attorney.  The lender is M & T bank, but it's the health home neighborhood loan program in Baltimore. The loan officer is in a small satellite office.

 Is there a reason why they are both on my neck.  What's the benefit to me for either one and if I don't choose the lender will he slow down the loan.  I'm purchasing a FNMA property and have a ratified contract and need to close in less than 30 days.

Just curious?

Hello,

In most states you have the choice to pick your Title Company, you can always google the title companies to see if they have reviews. Lender's and Realtor's.

However, if you use the lender's and they have a company they always use the communications may be helpful with getting things done.

Also, if you are going to use him a lot it is brownie points to keep loan and title company that work well  on the research together.

With Realtors's it's just brownie points you can use whom ever get's the job done to your satisfaction.

Hope this helps!

I would compare fees. Often lenders will negotiate lower fees in exchange for referring more business. Also, lenders usually have high standards for their title attorneys. Realtor has probably had a good experience with that attorney and it may make realtor's job easier, but the realtor can earn their comission. All in all, unless there is a price difference, I would go with lender's attorney.

@Cynthia Scaife    Ok.. that makes sense.  I will not be using this lender going forward.  It's a special neighborhood program for owner occupants.  You only get one shot to use them. Unless, you choose certain blocks and you have to stay in your OC property for one year every time you use them.

The realtor angle is probably my best bet.  I'm planning on buying an investment property as soon as 6-9 months and would like to maintain a good relationship with my realtor and his connections.

Thanks so much for that advice.  I just didn't want any retaliation from the lender if I say no.

-Kim

@Steve Combs

Thanks for the advice.  Costs is always a factor.  The realtor's excuse was "They do favors for me, they don't charge for everything, if you have future deals he will work with you".  Just seems iffy to me.  I got the feeling they wouldn't be as thorough. Just a gut feeling.

Thanks!

Originally posted by @Kimberly H. :

@Steve Combs

Thanks for the advice.  Costs is always a factor.  The realtor's excuse was "They do favors for me, they don't charge for everything, if you have future deals he will work with you".  Just seems iffy to me.  I got the feeling they wouldn't be as thorough. Just a gut feeling.

Thanks!

 I'm sure they would do a good job. The realtor seems to say in her response...it makes my job easier if you use my attorney.

It is about what you want, not what makes it easier for the realtor. Also, if you buy foreclosures, the seller will sometimes require you to use their attorney as part of the deal.

Well I'm glad I listen to you guys.  Lender it is.  The other guy handles real estate purchases and issue title insurance, but do not do title searches.  They use independent abstractors.

Glad I asked the question and cost from the Lender is only $200 for a full search.

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