Top 5 Questions to Ask of the Person Handling the Financing for Your Real Estate Transaction

Top 5 Questions to Ask of the Person Handling the Financing for Your Real Estate TransactionnnThe loan is a critical part of the real estate buying and selling process. Recently obtaining financing has become more and more difficult. Knowing every step of the way what to watch out for is CRITICAL. Remember, no one gets paid, until something closes. Therefore, when you are calling on the lender, mortgage broker or buyer’s agent to determine the status of the loan you have to ask specific questions. Fine or OK when ask about the status, is never a good answer. Several key questions will give you a big picture on the pulse of the loan. Here are some suggestions:nn1. Has the appraisal been ordered? This is a valid question and can often determine if the broker/lender feels they can complete the loan. If no appraisal has been ordered, soon after the contract has been executed it’s important to find out why and equally important when it will be completed. If there is an issue with the property appraising at or above contract price its best to find that out as early as possiblenn2. When will you have the loan commitment? In most sales contracts, the buyer and seller have already agreed upon a time whereby the loan commitment will be delivered. It’s very critical to get the loan commitment as soon as possible. After receiving the loan commitment, review it closely. Ask the lender, mortgage broker or buyers agent questions on any of the conditions you don’t fully understandnn3. How will you handle clearing these conditions? Ask if they’ve contacted the buyer, title company, appraiser or whoever will be responsible for getting the information needed. When do they expect to have this information delivered and if they anticipate issues in getting ANY of these items. nn4. When do you expect the “clear to close”? The “clear to close” indicates that the loan is fully approved and the lender is ready to prepare the loan docs for closing. Many title companies and attorneys will not schedule a closing without knowing the loan is clear to close. The sooner that this is available, the better! nn5. When will the loan packet be delivered to the closing agent? Having the loan packet early will allow time for the title company or attorney to prepare the HUD-1 Settlement Statement and circulate it for changes and approval. Having it there a minimum of 48 hours before closing will give the buyer time to get their cashier’s check and make closing a much smoother process for all parties. The better the process for your client, the better opportunities you have for future referrals.nnThere are many strategies used to market a home and bring in the buyers. However, if the person handling the financing isn’t pulling their weight you’re headed for a challenging and sometimes very disappointing experience. Putting the deal together is just half of the battle, keeping it together and getting it to close is the other half. Discover for yourself how savvy real estate investors, Realtors and developers are making this a simple process and creating more revenue in their business. Sign up now for Michelle Spalding’s FREE online newsletter called S.Y.S.T.E.M. – Save Yourself Some Time Energy & Money - for tips and helpful information on working smarter, not harder. Go to www.OnlineTMC.com for complete details.n