There is a lot involved in the process of obtaining a mortgage and buying a house, and all parties involved should keep in mind that they are all there to help each other. Everyone has specific areas of expertise, and they all expect to answer questions in order to ensure that the process runs as smoothly as possible from start to finish! One of the jobs of the listing agent is to ensure that everyone gets to the closing table in an effective and timely manner, and that often means asking specific questions of the lender. Let's take a look at 5 important questions that all listing agents should ask lenders regarding pre-qualifications.
Will the Credit Report That The Buyer Has Obtained Be Good At Least Through The Proposed Closing Date?
Pulling a credit report is a vital part of the entire loan process. Lender's need to see a borrower's credit score, their financial habits, and much more. Lender's need to make sure that a borrower's financial situation has not changed prior to closing, for example, they want to ensure that the borrower has not created any new debts. The listing agent wants to verify that the credit report that has been obtained is the one that will be used for the closing process.
Are Any Third Party Pre-Qualifications Required Or Is That Handled In-House?
In certain situations, third party approvals, such as approvals from an investor, for mortgage insurance, or from a bank may be required prior to closing. The listing agent wants to know about this condition ahead of time so that all parties can be prepared. A third party pre-approval indicates additional parties being involved in the transaction, and obtaining their approval is a crucial part of the deal. The listing agent is making sure that everything is in place as it should be before the scheduled closing.
Will A Local Appraisal Company Be Conducting the Appraisal, Or Will It Be Ordered Through An Appraisal Management Company (AMC)?
The listing agent may ask this question in order to ensure that the appraisal is being done in accordance with lender requirements. An appraisal management company handles the administrative aspects of the appraisal process, and all proper guidelines must be followed.
Are The Borrower's Applying For A Mortgage That Requires Reserve? If So, Do They Have Sufficient Reserves?
Reserves are basically a safety net. The term refers to a mortgage condition that requires the borrower to have a certain amount of mortgage payments in a savings balance that can be used in the event that the main source of income is lost. If this is a requirement of the mortgage, and the borrowers are unable to meet the requirement, the deal is jeopardized. Therefore, the listing agent is again ensuring that everything is in place for a timely closing.
Are Any Third Party Inspections, Such As Termite Or Radon, Required?
The last thing that anyone who is involved in a real estate transaction wants is to get an unpleasant surprise right before closing! If third-party inspections are needed, the listing agent needs to know as soon as possible so that the sellers can be prepared. Not only do the inspections have to be ordered and completed, but the sellers of the property need time to repair any necessary damage. It is possible that the buyers may also have the right to back out of the deal under certain circumstances. Everyone needs to act in a timely manner to make sure that the transaction runs smoothly.
A listing agent needs to represent his or her clients in an efficient manner. The agent knows that it is their job to obtain specific information related to the mortgage process, and lenders realize that this information is important! If you would like further information regarding the mortgage process, contact us today!