Posts Tagged ‘preapproval’

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with GMAC Mortgage.  Email Chuck at chuck.walden@gmacm.com or call 678-725-8076. Website is www.ChuckWalden.com

The market is better.  Rates are low.  Home prices are rising.  BUT what if there was more?  Hopefully, I can answer some of those questions and give you a way to move more property, make more money, and do an even better job for your customer.

What if a lender offered to pay the majority of the closing costs?  Would this help your negotiations?  Of course it would.  What if closing costs and seller concessions weren’t an issue?  What if you could throw out the standard 3% seller concessions because it wouldn’t even matter?  Talk about a negotiating tool.  Wouldn’t it be awesome if your buyer could come to the table with just their down payment.  Do you think they would remember that and refer more business to you?

What if a lender guaranteed you would close on time?  I know you’ve heard that before.  BUT, what if they offered to pay your buyer $500 if they didn’t close on time?  Do you know of any lenders that want to pay money to a buyer.  I don’t.  Talk about motivation.

What if a lender communicated with you constantly so you never had to “wonder” what was going on with the transaction?  Have you ever had to pick up the phone and ask?  My bet would be yes.  Wouldn’t it be great if you knew when the file came out of underwriting?  Or, that the appraisal and title are in and there are no issues?  Even if there are issues, you want to know.  You need to know.

What if you felt like you had control over every transaction?  You knew your buyers or sellers were in good hands.  You knew that they were getting the best deal out there.  You knew that you were going to close on time. 

Maybe this sounds like a perfect world to you and there’s no way this could ever happen.  I challenge you to find out.  My job is to make the purchase of a home as stress free as possible.  With some of the lowest rates in the industry, guaranteed to close on time, most of the closing costs paid by the lender, and communication throughout the process……Is there anything else you, your buyer, or your seller needs?  If there is, I would love to hear about it.

If you’re interested, I would love to talk with you to show you how this is a reality.  These tools will no doubt help you to grow your business, receive more referrals, and make more money.  Feel free to email me at chuck.walden@gmacm.com or call me at 678-725-8076 anytime to discuss how I can do this for you.  It’s new to your market so be the first to take advantage and don’t delay.

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An overload of communications

Image by windsordi via Flickr

As a buyer of a new home, I cannot stress how important it is to communicate communicate communicate.  If you have another home that you are not reporting, the lender will discover it.  If you have a part-time business and you are showing a loss on your tax return, tell your loan officer.  If you have received a loan or a gift from a friend or family member, tell your loan officer.  If you work for a family member in a family owned business, tell your loan officer.

Be truthful.  Be honest.  Be upfront.  Be detailed.

In the current lending environment, nothing can be hidden.  There are great lengths taken by underwriters to ensure that all information is discovered about borrowers.  You can save a lot of time, money, and effort by giving your loan officer ALL of the details. Don’t hold back!  Do not be worried that you are giving too much information.  The more information that is disclosed, the better the loan officer can guide you through the process.  I think you would agree that it would be better to know that you do not qualify upfront, than to go through the underwriting process and spend money on an appraisal.  Most seasoned loan officer’s can provide you with a plan so that you will qualify at a later date.  That is our job.  That is what we love to do.  Sometimes, two to three months of patience can mean the difference in qualifying or denial.  It can mean the difference between 4.5% and 4%.

Bottom line:  Communicate your wishes.  Communicate your problems.  Communicate your dreams.  All of this will help you achieve your dream of owning a home.

 

 

Mortgage debt

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I’ve discovered over the last twelve months, that potential buyers fall into one of two categories.  The first category is the “experienced” buyer.  This person, or couple, has purchased a home before and are either moving up to a larger house, downsizing due to retirement, or buying a second home or investment property.  Odds are, the last time they purchased a home, they provided their loan officer a bank statement and a pay stub and they were good to go.  Or, if their credit was good enough, they may not have had to show or prove their income at all.  The second category is the first time home buyer.  This person, or couple, has never purchased a home before and are ready due to a marriage, starting a family, or just plain tired of renting.  They have no clue what is going to be required other than what their friends and family have told them.

In case you’re wondering where this is going, let me explain.  Obtaining a mortgage is different.  Obtaining a mortgage requires hard work.  Obtaining a mortgage requires immediate responses when asked for more documentation.  Obtaining a mortgage is difficult.  Obtaining a mortgage is not what it used to be.

In order to make an offer on a home, whether you are a first time home buyer or a seasoned veteran, you need to arm yourself with a preapproval letter.  An experienced loan officer will ask for may things in order to give you a legitimate one.  Once your offer is accepted, the fun begins.  The best way I can explain this is that you and your loan officer are working as a team to put a puzzle together.  You both are trying to create a picture of your credit worthiness to an underwriter who has never seen you or spoken to you.  All the underwriter sees is the information placed in front of them. 

Items you may need are pay stubs, bank statements, tax returns, retirement account statements, a letter of explanation regarding why you would like to purchase the home, letters of explanation and proof of any large deposit that was not payroll related, divorce decrees, Human Resource department contact info, a letter explaining why you were late on a credit card payment three years ago, etc etc etc.  You have got to be organized and patient.  You must understand that the loan officer is working for you and not against you. 

This is the way it is and the way it will be for the foreseeable future.  Of course, every situation is different.  That’s why it is extremely important to contact a loan officer before you even begin looking for your new home.  He or she can guide you through the mine field one step at a time.