How to Build Confidence with Real Estate Agents and Contractors
A few years ago, a real estate agent friend of mine shared a story that has stayed with me ever since.
She had spent weeks showing homes to a young couple trying to purchase their first house during one of the most competitive housing markets in recent memory. They wrote offer after offer, only to lose every one of them to buyers willing to pay more than the asking price.
She knew I specialized in renovation lending. She knew renovation loans existed. Yet she admitted something that surprised me.
She was afraid to recommend them.
Not because she thought renovation loans were risky or unlikely to close, but because she didn’t understand the process well enough to confidently explain it to her clients.
So we sat down and talked.
We didn’t spend the afternoon discussing agency guidelines or underwriting requirements. We talked about expectations. I explained what she needed to know, what she didn’t need to know, and when to simply encourage her clients to call me.
Armed with that confidence, she began showing her buyers homes they previously would have overlooked.
One needed extensive renovation. The other required mostly cosmetic improvements.
Her buyers chose the cosmetic project, submitted an offer below the asking price, and it was accepted.
Not long afterward, she helped another family purchase their first home using renovation financing.
Neither transaction was delayed because of the loan program. Both were delayed because we were waiting on documentation from the contractor.
That experience reinforced something I’ve believed for years.
Renovation lending rarely slows down because of financing.
More often, it slows down because expectations weren’t established early enough with the people surrounding the borrower. Or those people aren’t cooperating.
Your Referral Partners Don’t Need to Become Renovation Experts
One of the biggest mistakes loan officers make is assuming they need to teach real estate agents everything they know about renovation lending.
You don’t.
In fact, I would argue you shouldn’t.
Your job isn’t to turn referral partners into renovation lending experts.
Your job is to help them understand enough about the process to confidently perform their role while knowing when to bring you into the conversation.
The more information you provide, the greater the chance someone unintentionally wanders into conversations that belong with a licensed mortgage professional.
Instead of overwhelming agents with loan guidelines, focus on removing uncertainty. Help them understand what to expect. Explain what happens next. Most importantly, make it easy for them to know when they should simply pick up the phone and call you.
Confidence—not information overload—is what creates stronger referral relationships.
Start Building Confidence at Pre-Approval
One of the simplest habits I developed was copying the real estate agent whenever I sent a borrower’s pre-approval letter.
That single email accomplished several things. It confirmed the approved amount. It reminded everyone that the approval represented the combined purchase price and renovation costs, not simply the purchase price. It identified important contract considerations, such as seller concessions when applicable. Most importantly, it opened the door for communication.
I always encouraged borrowers to call me before writing an offer. A brief conversation about the property address, estimated renovation costs, and purchase price often prevented unexpected surprises later. Those few minutes saved everyone time.
Help Agents Write Stronger Offers
The purchase contract often sets the tone for the entire transaction.
Real estate agents don’t need to memorize every contract nuance associated with renovation lending, but they do appreciate knowing the items that matter.
For example, renovation purchase agreements may need language acknowledging that required repairs identified during the lending process could affect the final renovation scope.
Agents also benefit from understanding the appropriate financing type to reference in the contract and the importance of allowing adequate time for closing.
Throughout my career, I typically requested a sixty-day closing.
Could many loans close sooner?
Absolutely.
In fact, my average closing time was considerably shorter.
But I couldn’t control how quickly borrowers selected contractors, how long it took contractors to prepare bids, whether a Consultant would be involved, or whether revisions would be required.
I’d much rather surprise everyone by closing early than disappoint them by promising an unrealistic timeline.
Managing expectations isn’t pessimistic. It’s professional.
Ask Questions About the Property
Another conversation I always had with the real estate agent involved the property itself.
Were all utilities available?
Was the home served by a well or septic system?
Approximately how old was the property?
Were they aware of any structural concerns or obvious health and safety issues?
These weren’t trick questions. I wasn’t looking for reasons to reject the property. I was simply trying to identify potential challenges while they were still easy to solve. The earlier you discover an issue, the more options everyone has for addressing it.
Agents Can Keep Renovation Loans Moving
One reality of renovation lending is that more people need access to the property than with many traditional mortgage transactions.
Contractors.
Consultants when required.
Appraisers.
Occasionally architects, engineers, or specialty inspectors.
Helping coordinate those appointments is one of the most valuable contributions a real estate agent can make.
I also prepared agents for another possibility. Sometimes borrowers need encouragement.
Perhaps they’re taking longer than expected to choose a contractor. Maybe the contractor hasn’t submitted a bid.
When the process begins slowing down, borrowers often respond more quickly when the reminder comes from their trusted real estate agent.
That’s another reason communication matters. Everyone should know how they can help keep the transaction moving.
Contractors Are More Than Documents
If real estate agents are important to a successful renovation loan, contractors are absolutely essential. Yet one of the biggest mistakes I see is treating contractors like a checklist instead of a relationship.
Whenever possible, I picked up the phone.
Contractors spend their days managing renovation projects, supervising crews, meeting suppliers, and solving unexpected problems. They’re rarely sitting behind a computer waiting for emails.
A five-minute conversation often accomplishes more than a week of back-and-forth email exchanges. Just as importantly, conversations reveal information paperwork never will.
Ask questions.
Then listen.
Contractors often volunteer insights you never expected to hear.
Sometimes they reveal opportunities. Sometimes they reveal concerns.
Both are valuable.
The First Conversation Belongs to the Loan Officer
I consistently share one recommendation with loan officers: I don’t believe the first contractor conversation should be delegated to a loan officer assistant or a loan processor.
Processors play an essential role in renovation lending, but this initial discussion is about much more than collecting documents.
It’s about building a relationship.
Whenever I spoke with a contractor, I wanted to learn about their business.
What types of renovation projects do you enjoy most?
How many bids do you prepare each week?
How many become signed contracts?
Then I asked my favorite question.
Why don’t the others move forward?
The answers were remarkably consistent: “The project costs more than they expected.” Or: “They couldn’t afford it.”
Every time I heard those responses, I thought exactly the same thing: those are the homeowners renovation financing was designed to help.
The conversation wasn’t simply contractor vetting. It was business development. Without realizing it, contractors were helping identify future borrowers who might benefit from renovation financing. That’s a conversation worth having personally.
Explain the “Why” Before Requesting the Paperwork
After establishing a relationship, I explained why I would soon be requesting documentation.
Contractor vetting wasn’t my requirement. It was a requirement of the applicable loan program.
Once contractors understood that licensing or registration, liability insurance, workers’ compensation documentation, specialty certifications, and other supporting documents were required as part of the financing process, they were far more prepared when those requests arrived.
The same approach applied to the renovation bid.
Rather than waiting for revisions, I explained upfront what made a strong bid.
It should clearly describe the work to be performed. Labor and materials should be itemized. Permit requirements should be identified. The math should be accurate. The proposed draw schedule should be included. Estimated start and completion dates should be realistic. If the home would be temporarily uninhabitable during renovation, that should also be communicated.
I found it much easier to help contractors prepare a complete bid than to repeatedly ask them to revise an incomplete one.
After our conversation, I summarized everything in an email and included a sample bid they could reference.
One final piece of advice always accompanied that email: Don’t sign the bid yet. Let us review it first.
That simple recommendation prevented confusion later when revisions became necessary.
Build Confidence, Not Confusion
The most successful renovation loan officers don’t measure every conversation by how many documents they collected. They measure it by how much confidence they created.
When a real estate agent hangs up the phone, they should feel prepared—not intimidated.
When a contractor finishes a conversation with you, they should understand the process—not simply have a longer to-do list.
That’s where trust begins. Every conversation either builds confidence or creates uncertainty.
When borrowers, real estate agents, contractors, and lenders all understand their role, communication improves. Delays become less frequent. Problems are identified earlier. And renovation lending becomes exactly what it was designed to be—a practical solution that helps more families purchase and improve the homes they want to call home.
Continue Your Renovation Lending Education
Building confidence with referral partners is an essential part of a successful renovation lending platform.
To continue expanding your knowledge, explore additional articles on this website covering topics such as setting borrower expectations, contractor vetting, and the renovation loan process. You can also continue learning by listening to the renovatED for Lenders podcast, where practical strategies, operational best practices, and real-world insights help mortgage professionals build, improve, and scale successful renovation lending platforms.
About Jennifer Goldsby
Jennifer Goldsby is the founder of The Reno Gal® and the host of the renovatED for Lenders podcast. With more than two decades of renovation lending experience, she helps mortgage lenders build, improve, and scale successful renovation lending platforms through practical education, consulting, and real-world operational guidance.