What does "Real estate agent" mean?

Definition

A real estate agent is a licensed professional who helps buyers and sellers navigate a home sale. They represent their client’s interests and handle the negotiations and paperwork.

Understanding Real Estate Agents

A real estate agent is often one of the first professionals involved in the home buying process. They help navigate property listings and coordinate showings. In simple terms, real estate agents act as a matchmaker between buyers and sellers. Example: If a buyer wants a home for $250,000, the agent helps find suitable options within that budget. It's not the agent's role to provide mortgage advice or approval; they focus on property transactions.

People Want To Know

Can real estate agents get a mortgage?

Yes, real estate agents can get a mortgage. They need to meet standard lender requirements, including credit score, income verification, and debt-to-income ratio. Like any other borrower, they must provide necessary documentation and may have to demonstrate their income stability through commissions or sales records.

Can you be a realtor and a mortgage lender?

Yes, you can be both a realtor and a mortgage lender. Many professionals in the real estate industry hold multiple licenses, allowing them to provide services in both areas. However, they must comply with all regulations governing each profession and ensure they act in their clients' best interests.

Do estate agents do mortgages?

Real estate agents do not provide mortgages. They focus on helping clients buy or sell homes, while mortgage lenders handle the financing. Buyers need to work with a licensed mortgage lender to secure a loan for their home purchase.

How much does a mortgage broker make on a $500,000 mortgage?

A mortgage broker typically earns between $2,500 and $4,000 on a $500,000 mortgage. This fee usually comes from the lender as a percentage of the loan amount, commonly around 0.5% to 1%.

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More From The Mortgage Glossary

Real Estate Settlement Procedure Act (RESPA)

RESPA is a federal law that requires lenders to provide borrowers with clear and complete information about the costs of a mortgage. This helps protect consumers from hidden fees and surprises.

Refinance

To refinance is to replace your existing mortgage with a new one. People refinance to get a lower interest rate, change their loan term, or convert their home equity into cash.

Repayment period

The repayment period is the length of time you have to repay a loan. For a mortgage, it's the full loan term. For a HELOC, it's the period after the draw period ends, when you can no longer borrow money.