It is up to those professionals the are surrounding the buyer – to inform and instruct that buyer to the specific process – and how to work toward a great purchase experience.
This breeds a better final result; the client will also experience better service, which cultivates referrals and repeat business.
Real estate brokers know every individual revenue stream really does matter. If your office also includes mortgage services, getting more loans closed on-time can dramatically elevate your income level.
How many times had you, as an agent, experienced frustration with some part of the loan origination process? We would bet it is more times than a smooth deal process. Whether it is paperwork delays, lack of communication, or unrealistic client expectations, it is more than easy for the loan process to add some potholes to an otherwise smooth closing. There are not only the changes and variations in client demands, but also a vast number of complicated loan solutions, and legislative changes which add into the mix.
As the central guiding figure in a deal, you need to address all the participants so everyone can best work together to reach the objective; which is achieving the closing of a deal in 30 days.
But for as long as remembered real estate agents and loan originators have typically had a love-hate relationship. Loan professionals have accused agents simply shopping rates, and agents assert mortgage professionals think of agents as being in a subservient role, serving their marketing and open house needs. Both statements are not entirely true, and therefore both professions don’t cooperate on the advantages of a structured partnership; which by doing so can logical make both agents and loan originators more money, more easily. A better mode of operation is for agents and loan officers to develop mutual respect for each profession, and therefore better cooperation. As an agent, it is good idea to initiate such communication in this regard.
Keep in mind that originators don’t like “short appraisals”. Loan originators are not supposed to talk directly to the appraiser! But you as an agents can. The perceived value of any property is what someone is willing to pay cash for, but the financeable value, that is, the appraised value, is set by the appraiser – not the lender!
As a big tip if you are an agent, don’t waste your time showing homes to buyers without a fully-document pre-approval of them. It can reflect bad to your client if you bring in buyers through their homes who aren’t pre-approved. If a potential buyer produces a pre-approval letter, take the time to read it and be certain you trust the people issuing the letter, and look up the reputations of the company represented. Be sure to ask if the people supplied documentation of income, assets, and employment to the issuer as well as if the issuer reviewed a tri-merge credit Report. Regarding sellers, more than a courtesy, make sure your seller is ready and pre-approved for their next purchase too.
We hope you found the above set of tips from the field useful in your career endeavors.