In Banks We Trust....OR Not....

Reblogger Barbara Todaro
Services for Real Estate Pros with RE/MAX Executive Realty 104763
https://activerain.com/droplet/5hVl

This is a post every real estate agent would be wise to read and follow as Sally has described..... 

Original content by Sally K. & David L. Hanson 57026-90 Broker

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 defaultthorough 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 Debt to incomesupport...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 commission Checknot 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." BankingBanker 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.

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
3,164,447
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

With thanks and praise Barbara Todaro ...hope this is required reading !

Apr 07, 2019 07:07 AM #1
Rainmaker
3,489,749
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Barbara. It is difficult to rely on lenders we don't know. Local banks often do due diligence with their own customers until a deal is firm.

Apr 07, 2019 07:30 AM #2
Ambassador
1,792,692
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Always a bit tense if we aren't familiar with a lender - we try to get permission from a buyer/buyers agent to call the lender prior to recommending an acceptance. If the buyer can't perform the offer is pretty worthless. We need to know how the vetting process was handled. 

Apr 07, 2019 08:16 AM #3
Rainmaker
1,729,342
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

There's an art to being pro-active without overstepping -- communication is step #1.

Apr 07, 2019 08:32 AM #4
Rainer
496,498
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Its getting little complicated here! 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. 

Apr 07, 2019 08:49 AM #5
Rainmaker
5,223,215
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Barbara, for sharing this excellent reblog selection.

Apr 07, 2019 09:25 AM #6
Ambassador
3,726,282
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Barbara as I stated to Sally K. & David L. Hanson on their blog "every transaction is a team effort, and requires everyone to be knowledgeable, accountable, and proactive in order to have a successful closing."

Apr 07, 2019 12:35 PM #7
Rainmaker
3,164,447
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

How I wish there were more knowledgable team players !

Apr 07, 2019 12:39 PM #8
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Barbara Todaro

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