Questionable Incentives for Agents

[Wesley Pittman]

Hi,

I'm just made my first offer on a property ever so it's my first time working with my current agent, let alone any agent, and I have some questions for the general community. My agent is pressuring me to work with one of two lenders she knows personally. I'm applying for an FHA 3.5% down loan, and she is arguing that the cost of money with conventional mortgages anywhere you go is basically the same, and she's stressing the importance of working with people she trusts and knows because there will be issues that come up, and people she knows locally will get those things worked out while other folks may not.

My questions are as follows:

1. For conventional loans, like FHA, is the cost of money from major mortgage brokers basically the same or will shopping around really save me money?
2. 
   Do there tend to be that many issues that come up with a conventional mortgage of this nature that would justify a "premium cost" to make sure the deal closes?
3. What nature of commission do realtors typically receive for referring someone to a lender?

Thanks for your replies. I trust my realtor overall, and really don't want to giver her reason to believe I'm undermining her or saying she would do something to my detriment for her gain. Thus, I don't want to bring up my concerns about the potential of a conflict of interests. However, I need to do my own due diligence, and if by shopping around I find a better deal, I want to have justification as to why I'm not going with one of her locals.

Thanks!

[Colin Smith]

Definitely shop around. They may have the same rates, but some may have more points or hidden fees that can build up. As for a referral fee from the lender to the agent, at least here in CO, it is illegal for a lender to give cash or anything of value (gift cards, cars, etc) to agents for a referrals. Some lenders are definitely easier to work with than other, but for the most part, many will be the same. I typically don't care who my buyers want to use as a lender.