Seven Habits of Agents Who Work Effectively with Their Mortgage Lender

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Here are Seven Habits of Agents who are HIGHLY EFFECTIVE in working with their mortgage lender.

May sound fairly silly if you've been an agent for a long time, but even seasoned agents sometimes forget a few important things.  Here's a refresher for you.  If you are a new agent, put this post on your bulletin board so you get off to a good start on each deal!

•1)  Lender needs a readable copy of the fully executed contract ASAP.  Email is now preferred over fax.

          •a)      Needed for appraisal order

          •b)      Needed for title order

          •c)      Needed for final underwriting approval

 2)  Provide lender a copy of the earnest money check

            a)  This is credited toward the down payment

            b)  Credited toward closing costs on 100% loans, or refunded back to borrower at closing if seller

                  pays closing cost in conjunction with 100% Financing

 •3)  Provide lender with the name, phone, and fax number of the closing attorney or title company

          •a)      Write info in the contract so it is clear for all parties.  Some title agents have branches

                     making it hard to know which branch of a given title company you want to close at so

                     writing the name, phone and fax numbers leaves no room for error.

          •b)      Write info on the cover sheet when you fax the contract (see rule #1!)

•4)      Provide a copy of the complete contract with all addendum.  On new construction, make sure the

           lender gets copies of all of the change orders and that the revised sales price is CLEARLY

           communicated after each change order.  You don't want the file to have to go back to underwriting

           the day of closing and find out your customer's ratios are too high at that price!

 •5)      Remind your client he must obtain a Homeowners Insurance Policy

          •a)      The policy should be effective the closing date

          •b)      The insurance agent's name and number should be given to the title company

          •c)       Remind your customer not to wait until the last minute to set this up as some homes may

                     be difficult to write insurance on (for example older homes or homes in a flood area).

•6)      The lender needs the name and phone number of the agent for the other party to the contract.

         •a)      Often needed to gain access to the property for the appraisal

 •7)      Be good to your banker - and your banker will be good to you!

           •a)      A little loyalty goes a long way when you need a rush closing.  Lenders tend to prioritize

                     their work day according to closing date first, and then to their most loyal referral sources.

           •b)      Try to limit the weekend and evening phone calls to new prequalification requests,

                     approval letters for multiple offers, and locking in rates.  While we wish we could be

                      available 24/7, we need time with our families and usually have to maintain regular office 

                       hours during the week, so if you can wait until Monday to see if the title commitment has

                       been received on your loan that is not closing for three weeks, try to wait.  Your lender will

                       LOVE working with you if you keep in perspective the relative urgency of a given matter.

   Until next time.......

Got Money?

Donna Mitchell, Home Loan Consultant, www.donnasgotmoney.com

Blog:  Donna's Got Money

Group:  Got Money?