Real Estate
October 14, 2019
link to facebook link to twitter
More Stories
What to expect in today’s loan process? How to use rental income to qualify for a mortgage How to plan the optimal time to buy a rental property The loan process and what not to do Why waiting for mortgage rates to get better is a losing proposition A factor that can drive your mortgage cost up How child support and alimony can affect your ability to get a mortgage What to look for when getting a mortgage on a manufactured home Why getting a 30-year fixed-rate mortgage is a smart financial move How to lower your cash to close when buying a home What you need to know about securing a VA mortgage How mortgage lender credits work Five quirky refinance scenarios that work Two mortgage loan programs get a better interest rate The #1 mistake consumers make when getting a mortgage… Things that affect your first-time buyer mortgage options Be wary about paying off this type of mortgage Best benefit for your first-time home buyer Why the VA mortgage is the best home loan A bank statement program might help get a mortgage Read the fine print Cash-out refinance or home equity Should you refinance with today’s mortgage rates? Should you buy and build or buy a single family home? Don’t make mistakes when getting a mortgage refinance Home value when refinancing Should you go FHA or conventional for purchasing your first home? Mortgage rate sounds too good to be true Finances matter when buying a home FHA requirement might hurt buying chances How to get a mortgage without providing tax returns The new way to get a mortgage with 1 year income tax returns Four common home buying mistakes to avoid How to create wealth with your income and finances Should you buy a house with monthly mortgage insurance? 2019 conforming loan limits rise FHA loan limits for 2019 increase Working two jobs makes now easier to get a mortgage How much of your mortgage income should be going towards an auto loan? How much are closing costs when you purchase a house? Self-employed income Common questions on financed mortgaged insurance loans A loan program you may be eligible for based on your credit score Can you use roommate income to get a mortgage? Pulling credit may not make sense Cash to payment formula when buying a home Be careful getting a mortgage if you have a bankruptcy How expensive your mortgage will be due to bad credit? A non-traditional program for self-employed mortgage borrowers What you need to know about the mortgage 4506-t document Two mortgage process problems you will want to avoid How the mortgage process gets ugly if you have a difficult picture Could the 30-year fixed mortgage get to 3 percent? Purchase price should not be most important factor Three reasons you should not buy a home Three quirky issues that will hurt your mortgage Why your mortgage payment keeps changing The credit score it takes to get a mortgage How 1031 tax-deferred exchanges work Six to avoid when purchasing a home Mortgage inquiry makes your credit score drop? Transfer property to family and be protected under Prop 13

Lender knows how to purchase business?

By: Scott Sheldon
May 17, 2019

Purchasing a home is a large financial move and there is a ton of details that go into the process; including everything from getting a mortgage to finding the right house in the right neighborhood within the area and location your desire to purchase in. Then there’s crafting the offer and packaging it in a way that the seller of a property says yes to you. Here’s some things you might want to consider when making an offer to purchase a house…

Let’s assume for our purposes that you already have your mortgage pre-approval intact. The mortgage lender has pulled a copy of your credit, you supplied them with all the supporting financial documentation and they have run your file through automated underwriting and have fully bulletproofed your financial package so when you submit an offer you’re as good as cash. Next is submitting an offer to buy the home. Here are some tips to help you be successful in that endeavor…

It’s all about who you know. This is where experience matters. Does your lender know your buyer’s agent? Have they worked together before? If yes, this can be a huge advantage. Does the lender know the listing agent on the other side of the transaction and have they worked together before? Is there a pre-existing relationship? People like doing business with people that they like know and trust. If you have a lender who is out of the area, newer, and doesn’t know the agents on either side of the transaction, you’re going to have a harder time getting your offer accepted. It’s a good thing if the lender knows both agents or at least one of the agents on either side of the transaction and or has a reputation locally for delivering.

How strong is your pre-approval? Is your pre-approval strong enough to make a 15-day or a 20-day close of escrow? If yes, this can also work to your favor as sometimes sellers want to close escrow on a house very quickly and you being able to perform in the time-frame in which they want can be a good thing. The opposite is also could happen maybe the seller needs a little bit longer and your agreement in being patient could help you win. The idea is you want to acquiesce to whatever the seller needs with regards to time frames when possible.

Can your lender offer you a loan commitment at the beginning of the process? This means no loan contingency. This is super aggressive and makes a big bold statement to the other side of the transaction that your offer is as good as cash in the bank. If your lender can’t do it? Find one that will. You don’t have time to play games with a lender who can’t get their act together. Find an accountable mortgage lender.

Is your lender willing to call the listing agent? Put yourself in the shoes of the listing agent, they need to vet all the offers to present to their seller. That’s potentially a lot of homework and fair amount of extra due diligence needed on their part. Why not have your lender call them and make it easier for them to say yes to you? This goes a long way and can even help ink a deal especially if that local lender knows that local listing agent and perhaps has worked with them before.

Does your lender clearly communicate how they will update all parties in an escrow? Ask any realtor and they will tell you the number one most important thing is communication by far. It’s the only thing that matters in a real estate transaction besides adhering to dates and timelines. Ask your lender how they communicate. Hint the answer you are looking for is they update you and both realtors weekly. You want a lender who’s willing to update all the parties regularly in the process making it easier on everybody, so emotions don’t get involved and dates are met. If the lender doesn’t clearly offer this style of communication, find a new one.

You want a mortgage lender who knows how to do purchase business, who knows the value of working with the local agent and understands that reputation is everything.

Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.