Recently, there have been an increasing number of lenders in our market who have "defaulted on their pre approvals." What does that mean ? WHO Does that ? It means several things....First...the loan officer may NOT have done a thorough application from the potential borrower. This can be especially problematic if there is "gifting"involved...the generous relatives had second thoughts...Or that tax return just was not in the amount "imagined"...the reasons are varied ...and the blame, we believe, is a shared "responsibility." Next in line...Underwriting....when are documents requested/collected? The day of loan comittment is not the day to be verifying divorce decrees, child support...additional part time employment...status of debts....that should have done weeks ago...If there is a perceived "issue"...it needs to be brought to everyone's attention for prompt resolution. Time truly is "Of the Essence" if there is some digging deep research required to have the loan close in a timely manner.
Third...and Sooooo not Last...let's look at the real estate agent side of things. We are not saying that the Buyer(s) should confess every digit of their financial status to their agent. What we are saying is that the agent needs to prepare the Buyer for the kind of information that the lender will request. Above and beyond that...suggest insurance companies...Offer scanning services or their location. A Buyer's agent in our opinion, does not get to write the offer, go to the inspection and wait for closing to collect a check. Be Pro-active....do you have the list of documents that the Lender requires of the Buyer ? Have you asked the Buyer if there are any "hiccups" in being able to supply them ? Have you checked with the Lender to be sure that everything is in order in a timely manner and that the dates in the contract can be met ? We have heard several newbie agents say...."That's not my job..." and our response is..."...and it won't be your commission either if the transaction does not close."
Do you and your Buyer know the reputation of the Lender ...beyond that ...the Loan Officer ? It is soooo not enough to say..."that's where I, my parents, my friends, co-workers do their banking." Banking and lending can vary greatly in abilities and quality of services.
Listing agents...you can't specify which lender the Buyer uses for their mortgage, unfortunately. What you CAN do...is ask the Buyer to be pre-approved by lenders you know are reliable. We have done this...to learn that the Buyers did NOT qualify for the mortgage on the contract...sometimes under no circumstance and others with the addition of a co-signer.
Brokers... Train Your Agents ! Lenders ...Train your Loan "officers"...
and Underwriters....we know you are such an independent group...but Please....know that all loan officers are not created equally...you too need to watch the calendar...and the contract dates.
Agents...BOTH...listing and selling...be Pro-Active...keep an ever watchful eye on all the moving parts of the transaction you "save" may be your own ! Amen and Women.
This has been what we hope is an educational reminder post brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty honored to be serving southeastern Wisconsin for all things timely in real estate.