Make Sure your Client’s Financing goes Through
As a real estate agent, it’s important to be aware of the pitfalls of home financing, in order to help your sales come together and stay together. As the first line of communication with your client, you are often times their first call for any and all situations that arise during the sales process. As such, if you are able to work in conjunction with a knowledgeable mortgage professional and educate your client along the way, this extra knowledge will help eliminate potential issues and bring you and your client to a successful CLOSE!
Since so much has changed in the mortgage lending industry in the past few years, it’s important to keep these tips in mind:
#1 – Don’t Waste Time Showing Homes to Buyers who Can’t Buy
Have your client check their credit score in advance to be sure they meet the minimum credit standards to qualify for a mortgage. A reputable mortgage company may be able to recommend a credit repair company should there be credit concerns. You can also have your mortgage partner get them a pre-approval letter, but it’s good to have the conversation before you start the process of showing them homes.
#2 – Have your Client Start to Gather the Necessary Mortgage Documentation
This will be important for them to get a pre-approval. These include; W2’s for past 2 years, 30 days of consecutive pay stubs, All pages of two (2) most recent statements for checking, savings, and all investment accounts, copy of the signed P&S or Warranty Deed Agreement. Your mortgage partner will let your client know this, but it’s important you know in case it comes up.
#3 – Recommend Avoiding Major Life Changes
Prior to home buying it’s important that your client not change jobs, make any large purchases on credit, sign or co-sign on any other loans, set aside some extra cash for closing and make sure to keep current on all loan payments. These things can effect credit and their ability get a loan.
#4 – Bring Up Closing Costs
Your client should be prepared to pay 2-3% of their mortgage total in closing costs unless they qualify for a no points, no closing cost loan. This is important to mention this to them because you don’t want them to fall short and not be able to close on the home!
While a good mortgage partner will be able to handle the specific mortgage related issues that come up, having this process go smoothly is paramount to getting the house closed, and being educated is your first line of defense.
This article was written by Edmund “Chip” Poli, co-founder of Poli Mortgage Group, Inc. Poli Mortgage, with its direct lending power, numerous banking and industry partners, highly secure internal platform & process, and best in class Customer Service, is committed to providing a vast range of customized mortgage programs to satisfy any borrower’s financial requirements. Program offerings include FHA, VA, USDA, FNMA, FHLMC, ARM, debt consolidation, home improvement, and other niche & jumbo loans. For more information please visit www.polimortgage.com.
