Is your deal on solid footings? Or is the foundation crumbling down? Sometimes we think is the deal is standing on solid ground, only to discover underwriters have us in a sink hole. PUTTING YOUR FOOT DOWN ON A PILE OF EMPTY PROMISES MAKES A THUD NOT A STATEMENT.
All loan commitments have conditions but how many times do Realtors actually get a copy of them? Not often enough or sometimes not at all. ASK FOR THEM.
Borrowers and their Agents will both need a copy of the Conditions of Loan Approval since we have been told that "All loans have them"
Everyone is aware of the scrutiny lenders are under as a result of the Housing Crisis. However, Buyers are willing and trying to buy homes. You've all heard grumbling about the HVCC, which affects Conventional Loans. FHA/VA financing if you ask most lenders is easier in comparison to obtain. But not necessarily.
THE COST OF BORROWING MONEY
Loan Officers like Realtors® work on a commission basis.
Loan Applicants will pay a fee to borrow money. In addition, they will also pay for
1) Appraisal
2) Survey
3) Title Insurance
4) Inspections
a) Home Inspections
b) Four Point Inspections
c) Termite Inspections
d )Structural Inspections (if needed)
e) Re-Inspections
f) Second Appraisals
g) Repairs (in As-Is)
h) Antacids
i) Aspirin
j) Unlimited cell phone minutes
Multiple re-inspections can be expected if something comes up which may cause a lender to have "concerns". The borrower will have to pay for these a second or third time. The Realtor usually ends up arranging them.
WATCH FOR SUBJECTIVE TERMS
"Satisfactory Inspection"
sat⋅is⋅fac⋅to⋅ry according to Dictionary.com is defined as follows:
existing in the mind; belonging to the thinking subject rather than to the object of thought (opposed to objective ).
2.
pertaining to or characteristic of an individual; personal; individual: a subjective evaluation.
3.
placing excessive emphasis on one's own moods, attitudes, opinions, etc.; unduly egocentric.
DOCUMENT DOCUMENT DOCUMENT-
LET ME PULL A RABBIT OUT OF MY HAT... In the end, it will be the REALTOR® who will have to pull a rabbit out of their hat in obtaining experts to dispute last minute lender objections.
SO PULL UP YOUR SLEEVES
These requests can and usually do come late on a Friday afternoon at the end of the business day just before the loan is supposed to fund for closing.
YOUR CUSTOMERS DEPEND ON YOU TO OVERCOME LAST MINUTE OBSTACLES TO CLOSE.
Even when your bag may appear empty..what you pull out of it can surprise you!
HAVE YOU PULLED A HAT TRICK LATELY?
St. Cloud Florida Real Estate Broker/Associate,
St. Cloud Florida Homes For Sale, Buying HOMES In St. Cloud Florida, Real Estate Agent specializing in Osceola County Homes ,Townhomes, vacation properties, land, & Investment Properties-Allison Knows Osceola County, Fl.
Hi Allison! I love h, i and j! Until last year, I never thought of cell phone expenses but, had a client that would never answer her cell phone. During the day, she'd return my calls from work, in the early evening when I left messages, I wouldn't hear back from her until the next day. I finally found out that during the initial stages of house-hunting, she had used up all of her minutes and did not have a home phone, as many folks don't these days. She would only phone me back from her work number. I've since learned to let clients (especially first time homebuyers) know that if they prefer to use phone as the primary means of communicating, that they may want to give me two numbers--so they can save their cell minutes!
Anyway, I digress! Excellent post and yes, we DO have to perform magic on many transactions to make it to Close!
Allison, you are sooooo right on! At this point ANYTHING CAN GO WRONG ABOUT ANYWHERE! It's a mondo job to follow through on closings at this point. I have pulled a few bunnies out of my hat lately but I've lost a few also....haven't we all??? This is great advice. I had to feature this. Deb :-)
This truer now than ever before. Nothing is done until it's closed - and then it's still not closed. There are more loan conditions these days than there are birds in the sky - keeping track is critical - cause there a lot of really wacky requests that make us all just shake our heads and say WHAT??????? Are you kidding me.
DEB- Thank you for the kind remarks- Actually that was a note to self- as my phone lately has been on fire. Ironically it is the smallest of loans I am working on that seems to be hitting the greatest number of obstacles.
What it really bothersome, is that subjective reasoning defies logic.
But I have been fortunate to be able to pull rabbits out of my hat.
DEB- Thank you for the feature! What a nice surprise at the end of what can only be described as a hellacious week. When requests become demands and the poor buyers are stuck int he middle between a rock and hard place, you truly have to be a magician to get the deal done. Lesson learned- stick with lenders you have worked with before.... less surprises and faster closings.
Allison, sticking with the tried and true lenders is the best way to go! I have had several people want to go for the LOWEST POSSIBLE INTEREST RATE NO MATTER WHO'S OFFERING IT....
All I can say is that they learn to listen to their Agent! Ha!
I have been known to be a magician also. Some of the reasons that people don't call back are very lame. But, we keep on trying to do that perfect trick!
Shhh... don't tell anyone, but I love pulling the rabbit out of my hat for my clients. Why? Because I love the "Ooohhh" effect it has. Let's face it, sometimes the issues with lenders are really just smoke screens for the underwriters not having the time.(not to be confused with real issues) I love to give my clients the magic words, "docs are at escrow."
HI Allison - thanks for the post..it resonates with many in the community. It is usually the veterans who understand the qualification process and how to speak the lender's language. It is more helpfuyl to include special clauses in your contract to cover all the items you list.
It may also be more helpful to insert a closing date in the third week of the month, not the last day of the month ...to save buyer prepaide interest... since we never really know what new challenge will be presenting itself - even at the closing table.
By this point in the process the buyer's are packed, hired the movers and ready for joy - not nonsense to buy more time for the underwriter's
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In the end, it will be the REALTOR® who will have to pull a rabbit out of their hat in obtaining experts to dispute last minute lender objections. 
;)
;)
Hi Allison! I love h, i and j! Until last year, I never thought of cell phone expenses but, had a client that would never answer her cell phone. During the day, she'd return my calls from work, in the early evening when I left messages, I wouldn't hear back from her until the next day. I finally found out that during the initial stages of house-hunting, she had used up all of her minutes and did not have a home phone, as many folks don't these days. She would only phone me back from her work number. I've since learned to let clients (especially first time homebuyers) know that if they prefer to use phone as the primary means of communicating, that they may want to give me two numbers--so they can save their cell minutes!
Anyway, I digress! Excellent post and yes, we DO have to perform magic on many transactions to make it to Close!