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How to make your next deal go a lot more smoothly!

After I have completed the loan application and ran them through AU and gotten them approved, I send an email to the buyers Realtor, the sellers Realtor, and the Title Company.

I tell them that the buyers are approved and that this is how I read the contract. I go through the contract page by page and include items such as:

Purchase Price
Property Address
Escrow Officer and Company
Closing Date
Conditional Commitment Due Date
Who is paying for the Termite Report, Survey, etc.
Any special conditions such as "Seller to credit buyer $8,000 at closing for buyers closing costs and prepaids"
Any part of the contract that may cause heart burn to a smooth loan process such as the sale including a "50inch flat screen TV on the wall waiting for you to move in and enjoy!"

This really impresses the listing agents and Escrow Officers, but more importantly makes my job so much easier. I do a ton of VA loans and the only time we get in trouble is when the seller says "Hey I agreed to $8,000 and now I am being charged for the borrowers non-allowables. By restating what is in the contract I give every one a second chance to get it right. If they don't then shame on them but we have a valid contract.

It also acts as a warning. Guys the value of that 50 inch flat screen is going to be discounted from the value of the house as it is chattel property and not real estate.

Doing this just makes so much sense and takes so litte time and will make you stand out among lenders.

Good Luck, Good Lending, and Aloha

Posted by Bruce Bourgault, Vice President, Mpro on 07/06/2007 09:02 PM

Comments (30)

mortgage, mortgage lending, va loans, hawaii lenders, great ideas, email

30 Comments on How to make your next deal go a lot more smoothly!

JUL

2007

Deal with an agent on the other end who has a clue....easier said than done, but in my opinion thats the key!

Hi Kaushik -- Yes that is true, but this reall saves me time and grief. Aloha

Great Advice, Bruce. I am an escrow/closing agent and really appreciate open lines of communication. "An ounce of prevention is worth a pound of cure"!!! When you have more than one file going at a time it's a good idea to revisit a file periodically to keep on top of all of the elements unique to that closing.

Keep up the good work!

Laurie

Hi Laurie-- Thanks for your comments. I am so glad that an Escrow agent agrees that this is a good idea. Aloha B

JUL

2007

Communications is the key to a smooth transaction. I am amazed how many in our industry do not understand how that makes their own job easier.

Hi Randy -- You are so correct. This is my way of trying to insure that we are all on the same page. I don't know how many times I have seen a deal where in the counter they have changed the escrow company and the LO did not catch it. All that does is slow down the transaction. Have a great week end. Aloha B

JUL

2007

Bruce-That little bit of "restating the obvious" is a great idea. It also forces me to go and look back at the Purchase Contract and addendums to insure that the information is correct. Nothing wrong with a good system of checks and balances to insure a smooth transaction.

THat is a great idea. I think I will start doing the same and also remind the seller or buyer ( my client) as the case may be by email.

David-- Boay I agree. It keeps us all on the same page and that is the object -- Get the deal done as smoothly as possible. Thanks for your comments. B

Gita-- It only takes a couple of minutes but it sure prevents a lot of otherwise needless mistakes. Thanks B

love your posts

JUL

2007

That is just a SUPER idea! I can't believe I didn't think of it! I feel like I do everything else, but I can see how this would really make a difference and make us stand out above the crowd (not that we don't already). star

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Margaret -- Thanks so much. Aloha

Angie -- Hi Angie -- I started doing this about two years ago when I misread a contract and almost blew a deal. It was for me to insure I got it right, but everyone appreciates it espically the escrow officer! Aloha

I like your style Bruce, Aloha!

Hi Ebony -- Thanks so much for you rcomments. Aloha

JUL

2007

if you really want it to go through smooth think like an Underwriter

i put my deals together the way i know they would look at them and if quirky answering up front their questions before they even ask them

most my deals get clear to closed right away because i submit complete files up front

Hi Dominick -- Good Point. At my company, for the most part we do not use an underwriter. If we get an AU accept then we have a Validator that checks our input. If they agree with the info we put in then it is a done deal. If you do have an underwriter than youo are exactly correct and must meet their requirements. Aloha

JUL

2007

Thank you very much for sharing, that is very good information.

JUL

2007

Hi Shane -- i am sorry I missed your comment. Try it on your next deal and see the coments you will get from the listing agent. Aloha B

JUL

2007

Great Tips! I need to keep reading these blogs, lots of interesting information and great advise. Good luck with your listings

Hi Jamie -- Try this on your next deal and you will be amazed at the response you will get from your Realtors. Aloha

AUG

2007

Bruce, I love your ideas! Can you be my mentor?...lol

You bet Ebony -- Please watch my blogs and email or call me at any time with your questions. I would be honored to be your mentor. Lets make sure we can help you be all that you want to be. Aloha

AUG

2007

Thank you, Bruce....Aloha!

Thanks Bruce. More good advice from a very seasoned intellect! I appreciate and use your advice. How are you feeling?

HI Patsy == Thanks for your commets. I am feeling fine but they are going to do a little laser surgery around the 1st of Sept to get the last of the cancer out of my throat. Then I;ll be great. For now though I am able to work full time and I am having fun. Aloha

are you getting paid for this loan officer training?

how many contracts do you see with poor or misleading info?

Hi Jay -- I wish! No I enjoy doing this. At least 80% have errors or room for interpatation. This just forces it to the front of the deal rather than at the end of the deal. Aloha

Ensuring that everybody is on the same page is a wonderful way to avoid easily avoidable problems down the road. I tell me clients that one of the most important parts of my job is to avoid the avoidable problems -- I find it increases candor and helps us focus on the fun of accomplishing our goals.

Hi Jefferson -- What a great comment -- Avoid the avoidable problems. Mind if I steal that one? Aloha

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