What should real estate agents never say about mortgages?

When it comes to agents and mortgage questions, the rule is simple: lending is the lender's lane, and ours is the house, the contract and the client. If a client asks a financing question you can't answer in one sentence, it's a lender question. Agents don't quote rates, don't tell anyone they qualify, and don't give credit advice. What you can do is ask good questions, write down the answers and hand a well-prepared buyer to a lender.

The short answer

Never quote a rate, points or payment. Never promise approval or a program. Never tell someone to pay off, close or move money. Ask the seven questions, note the answers, and connect them with a lender.

What we never do

We don't quote rates. Not a rate, not points, not a payment. "A lender will quote you in fifteen minutes, and it'll be real." Published rate averages are for perfect-credit borrowers and aren't a quote.

We don't tell anybody whether they qualify. "You should be fine" is a promise you can't keep. The lender decides. You deliver the news either way.

We don't give credit advice. No "pay off that card" or "close that account." The wrong move can drop a score. Send credit questions to the lender.

We don't touch the money. No advice on moving funds, gifts or large deposits before the lender says so. Earnest money goes to the title company per the contract. Never a wire instruction by email.

We don't book a lender appointment for someone who isn't close. Not ready isn't dead. Note the situation, set a nurture follow-up and give them the path.

The seven questions to ask before the lender

Ask in a normal voice, on the first call or first tour. You're not qualifying them. You're getting the lender what they need.

1. "Have you talked to a lender yet? Do you have a pre-approval letter?"
2. "What monthly payment feels comfortable for you?" Payment, not price.
3. "How much do you have set aside for the down payment and closing costs?"
4. "Is this your first home?"
5. "Has anyone who'll be on the loan ever served in the military?"
6. "Roughly where's your credit: great, good, or working on it?"
7. "Do you own a home now that has to sell first?"

Then, when it fits: who'll be on the loan, any big changes coming (new job, self-employment), and when they want to move.

Write the answers in your CRM the same day. Then: "Perfect. I'll connect you with a lender today. It's about fifteen minutes, and there's no cost to start."

The soft pull explanation

Lots of buyers stall at pre-approval because they think it'll hurt their credit. Lenders often start with a soft pull, which is a look, not an application, and doesn't affect the score. The hard pull happens later, when they formally apply. Confirm the lender's process, then say:

"Your lender can often start with a soft pull that doesn't touch your score. They'll tell you where you stand. You're not applying for anything yet."

Step by step

1. Ask the seven questions.
2. Write the answers in your CRM.
3. Introduce the buyer and the lender together by text.
4. Tell the buyer: "Change nothing about your money until you have the keys."
5. Follow up the next day: "Did you two connect?"

A worked example (illustration only)

Buyer: "What rate would I get?" Agent: "That's exactly what a lender will tell you today. It depends on your credit, down payment and the loan type, and I'd rather you get a real number than a guess. Can I ask a few quick questions so they have what they need?"

Illustration only.

How to explain it to your client

Watch-outs

• Advertising rules. If you mention specific loan terms like a payment, rate or down payment in an ad, federal truth-in-lending rules can require more disclosures. Leave loan terms to the lender.
• RESPA. Buyers can choose any lender. Don't accept anything of value for referrals, and disclose any relationship.
• Fair lending. Ask every buyer the same questions. Never steer anyone to or away from a loan type based on who they are.
• Credit repair referrals should go through the lender so the plan matches the loan.

This is training for real estate agents. It isn't legal or lending advice. Follow RESPA, fair lending laws, advertising rules and your brokerage policy.

Frog tip: Reply to every review within a day, by name, with one specific detail: "Thanks, Sam. That inspection on the sewer line was a wild ride. Enjoy the new yard." Future clients read the replies too, and they're judging how you treat people. Learn more →

Questions

Can I tell buyers what loan types exist?

Yes, at a high level. Leave the details and numbers to the lender.

Can I show a payment estimate?

Use the lender's numbers, label it an example and list the assumptions.

What if the buyer has their own lender?

Great. Ask the same seven questions and work with them.

What if they're not ready?

Nurture stage, a note, and a follow-up in about 90 days.

Should I mention down payment programs?

Yes, mention they may exist, early, and let the lender check eligibility.

Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.