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Closing that Purchase Loan... Buyer, Sellers, Realtors and Lenders All Need to Work Together

Mortgage and Lending with Land Home Financial Services, Inc. 82835

I love to set up purchase closings. Who doesn't, happy clients, happy Realtors and happy Scott!!! Recently, it seems that getting loans to close has become more of a challenge. Buyers and sellers are missing deadlines and Realtors are becoming frustrated. This doesn't bode well for me.

It is not that long ago, maybe two or three years, that you could actually send a loan package to an investor and literally hours later you have have a set of requirements and if it was a really clean file, an approval! It was one of the reasons working with a broker was so attractive, fast turn-times. We all long for the good old days.

I wouldn't be stepping out on a limb to say things aren't quite the way the used to be. We currently have investors who take three, even four weeks to review files. Once they done the initial underwrite, they come back with a laundry list of requirements, on even the "cleanest" of files.

There are few things we can do to work through this unbearable situation. They may not completely solve the problem, but they can certainly make it easier to work through.

  • Communication, Communication, Communication: Lenders and Realtors need to communicate. Everyone involved in this process from the buyers and sellers to the title company, needs to understand and set realistic expectations. We need to let everyone know when setting closing dates we need to err on the conservative side. I suggest between 30 to 45 days on the contract. If we can get things done sooner than that, well everyone is happy. If it actually takes the full amount of time, then we haven't missed a scheduled closing and people will tend to be less frustrated.
  • School Our Clients: Our clients need to know they should not change their jobs, open new credit or have a multitude of credit pulls made while we are making this loan. It really is not a difficult request, but you might be surprised at how often this comes up. Clients need to know how the loan process works from signing the contract to sitting at the closing table. Its our job to make sure our clients understand the entire process!!!
  • Preparation is the Key to Success: Our RESPA documents need to be properly signed and dated. Our income and assets need to be properly documented. The purchase contracts need to be easy to read. In other words we need to have our packages complete and ready to process. We can't send in half packages and expect to see a file clear on time. The more complete and clean our file the faster we can get our loans closed.
  • Be Pro-Active: If it appears as though there may be even a hint of a problem on the horizon, we all need to act before it becomes an issue. This includes writing letters of explanation for gaps in job-time, verifying that repairs to the subject property will meet local codes and program stipulations. These items can be something that can be prevented during preparation, but things do happen. We need to know how to overcome adversity early so it does not become a deal-breaker.

The above actions are simple... they just aren't always easy. Lenders and Real Estate Agents need to review their routines and make sure they are working together for the benefit of the client. Each of us is an important part of the process. We need to work together to make sure that process becomes less of a burden. I believe many in our industry have become used to how easy it was to get a loan approval and now that we are being scrutinized on a much higher level its hard to make that adjustment.

The money for financing is still out there. The rates and terms are perfect for home buyers. Prices are perfect for buyers to find values and that dream house at the same time. There has never been a better time to be a home buyer. We all just need to work together to make that dream a reality.

If you would like more information, as a buyer, seller, real estate agent, real estate office, financial planner, college or other party, feel free to contact Scott White directly on his cell at 608-386-5665 or via e-mail at scott.white@imaginehomelending.com .

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Scott White | Mortgage Loan Originator | Equal Housing Lender | Personal NMLS # 82835 | AMEC NMLS # 150953 | AMEC Branch NMLS # 844359

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