| Prospect
Financial Services can answer these questions
with you.
How do you avoid difficulties that may
slow down both approvals and closings? It
is nearly impossible to list every issue,
but maybe this list of 10 issues will help
you identify some areas to concentrate efforts.
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10
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Unrealistic
expectations about what the home purchasers
can afford.
If there is a question about whether
or not you may qualify, it should be
strongly suggested you take advantage
of a borrowing power estimate or credit
pre-approval program. |
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9
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Inadequate
preparation by borrower prior to application.
Real estate professionals and Mortgage
Consultants can work together to prepare
borrowers. The more information the
borrower has available at application,
the more complete the loan officer's
analysis can be. |
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8
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Recognizing
that borrowers may need loan programs
explained. Industry jargon about
an index, margin, T-bills and other
terminology is familiar to real estate
and mortgage professionals. But they
have to remember not everyone has an
in-depth understanding of the potential
impact on loan terms. |
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7
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Self-employed
borrowers may not realize that they
are "self employed".
Consequently, you need to be aware that
ownership of 25% or more in a company
or commissioned income means different
documentation requirements. Communicating
this could mean that the issue is resolved
before the loan comes to underwriting.
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6
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Government
loans with property problems or repair
conditions need to be discussed by all
parties before closing. Frequently,
this means that the question of who
pays for the repairs must be addressed. |
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5
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Third
party vendors who do not deliver on
a timely basis. Credit reports
are not the issue they were in past
years, but appraisals can be. "It's
in the mail" excuses prevent timely
turnarounds. |
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4
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Lack
of understanding by applicants about
what happens during the processing,
underwriting and closing of a loan.
Explanation of time frames, documentation
and responsibilities of all parties
is critical. |
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3
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Credit
explanations which are not adequately
documented and supported or which do
not relate to the dates of delinquencies
in the credit report. |
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2
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Funds
to close verified and adequately tracked.
Gift funds, for example, must have donor's
ability to give the gift as well as
showing the money going from donor to
recipient. |
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1
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The
biggest problem of all, however, is
lack of communication. Many parties
are involved in each transaction--buyer,
seller, real estate agent, mortgage
banker, appraiser, attorney and settlement
agent. Each party must have complete
understanding of what is going on at
any given time. |
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