Lender delays seem to be increasing lately. We’re jumping in to show you how to avoid closing delays when buying or selling a home in Metro Atlanta.
Who are the parties from the mortgage company:
Originator – This person is basically the salesman and project manager of the loan. His/her job is to secure business.
The processor is the information gatherer. And the underwriter is there to make sure the loan “follows the rules” the government sets for mortgages.
Closing delays happen for a variety of reasons, here are some of the top finishers:
Buyer didn’t turn in documents timely
Appraisal Delays or house didn’t appraise
Complicated financial portfolio (own rentals, business owners, several businesses, contract work)
Tips on choosing the right lender:
Someone who you feel takes care of you and educates you on the process. The originator (loan officer) you work with should clearly give expectations and meet with you in person. The rates need to be competitive, but low rate should not be the primary reason you don’t go with a lender.
Ask questions like:
How many years experience do you have?
How often do you close loans on time?
What can I do on my end to make sure we close on time?
Agent referrals are a great way to find a mortgage loan originator. Why? Because agents work with them all the time and will only work with lenders that close on time. Agents cannot receive kickbacks or referrals from lenders. So as a consumer, you should know the referral is “pure.” Unless of course, they are related to the lender. Agents refer lenders because they are good.
Some lender “pre-underwrite” their loans. This is a very powerful tool for the consumer because you’ve basically been approved for a loan subject to finding a house and an acceptable appraisal. This type of strategy simply makes sense and we wonder why this isn’t more common.
If you have a pre-underwritten loan, it can be the most powerful loan you can submit to a seller of a home.
Finding the right real estate agent is just as important as the lender.
Full time agent vs part time agent:
Part time agents don’t have a deep knowledge of the Atlanta real estate market mainly because they have another job that takes their time. Full time agents walk, talk and breath real estate every day.
Even with full time agents, you need to find one who is seasoned and has been through several marketing cycles. You should never feel pressured to buy a house. Now I will say, a good agent will tell you why you should, or shouldn’t, purchase a particular property.
Agents are local. Try to choose a realtor that lives, works, and plays in the community you want to buy. That local knowledge is priceless.
Local agents have knowledge of off-market properties, the holy grail of real estate. The best agents network with other agents and use technology like Facebook to find you houses that may not be for sale. As a consumer, you’re leveraging every available force to your advantage: full time, experience, network, and local knowledge.
Time Magazine says “Real estate is a local game, and to win, you need someone who plays in the area where you’re looking to buy. Not only will they be up on the market trends, they’ll know about local schools, commute times, and under the radar red flags, like the solid waste transfer station that’s been proposed for the neighborhood.”
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