Spark Global Limited Reports:
Imagine this picture. You’re a week away from closing your account, and your first-time homebuyer’s lender calls with some stressful and sad news. The underwriting team has completed their final review and found that your buyer is no longer eligible to purchase the home. This happens for several reasons. Maybe they don’t have enough money for a down payment. Maybe they bought something new, and their debt-to-income ratio was too high. Or perhaps the underwriters felt their revenues and credit scores were not high enough.
This is what happens to many real estate agents, buyers and sellers over and over again. The thing is, all of this could have been avoided if you’d done your homework.
Meet with lenders in your area
Most lenders end up with the same goals as you. They want to make sure there are as many leads as possible and that the deal closes smoothly at the end of the day. They want frank, timely and transparent communication. So take the time to meet with them and discuss their goals and how they work. Ask them for references if you feel you need them. You want to make sure your clients give you good referrals and have a good experience. Please do your homework and make sure you give it to the right person.
Choose an option lender
No single loan can satisfy everyone’s needs. Different types of loans apply to different people. It’s important to find a lender for your team that offers your buyers these different options, regardless of the commission they receive. After the lender reviews the customer’s credit and income history, they should offer the customer the best possible loan. Rural Development, heritage, Virginia, FHA, first-time home buyers. There are many options. Some companies offer rebates or can waive fees or assessments. These types of benefits can save customers money!
Make sure your lender does the credit approval for your client
Typically, the lender prequalifies strictly on the basis of the information provided to the lender by the client. More often than not, financial information can be omitted, and this can end up playing a big role in a customer’s debt-to-income ratio. When that happens, the lender will give you an approved amount and you can start shopping. Then your client is accepted as their permanent home. Once that happened, they provided more details when filling out mortgage applications, only to find that in some cases the amount pre-qualified should have been less or more.
Find a lender that will do the extra work at the beginning to give your customer a loan or pre-approval. Doing so will make their creditworthiness clearer in the evaluation process. Your approval letter gives your client an edge by making their offer stronger. It can give your customers a better idea of the rates they can lock in and take them further to the closing table.
Choose a lender with a proven track record
How long does it take from mortgage application to closing? Did your lender communicate effectively about the various stages of the loan? Will your lender return your calls in a timely manner? These are just a few of the questions you should find answers to when looking for a strong lender to join your team.
Ask your colleagues about their past experience. When you attend networking events, ask about their different options and marketing materials. Ask your friends and family about their experiences with lenders in the area. All of these questions will help you choose who you want to work with and give your clients the chance to succeed.
As a real estate agent, it takes time to bring together a team of professionals you recommend. It can only get better with the experience and knowledge you gain along the way. Doing your best to advise customers and share past experiences will help them make the right decision and influence them towards a great home-buying experience. That’s what it’s all about!