Real Estate Agents Demand Local Lenders

contract

In an article dated August 22, 2014, Inside Mortgage Trends reports results from the latest Campbell/Inside Mortgage Finance Housing Pulse Tracking Survey to show that real estate agents strongly prefer local lenders and a Florida real estate agent was quoted as suggesting to the seller a requirement for all offers with financing contingencies to go through a local lender.

Agents report that closing delays are more common from a call center lender than from a lender with a local office due to a general lack of responsiveness, underwriting delays, lack of knowledge of local lending laws, and inaccessibility of lender contacts with settlements taking place after hours. When the time requirements of the sales contract are not respected, buyers are at risk of losing their earnest money deposits.

Tom Popik, research director of Campbell Surveys confirms, “Agents crave information and certainty of closing.” A Michigan real estate agent is reported to contact the buyer’s lender for access to information regarding the timeline of the underwriting process and expectations for meeting closing dates. To leverage against delays, he includes a contract addendum leaving his seller’s with “an out after a certain period.”

Selling agents are said to encourage potential buyers to avoid call center lenders altogether or as a safety net, submit a second loan application to a local lender. Additionally, when a listing receives multiple offers, sellers are encouraged by their agents to “shy away from offers financed by a call center lender.”

How can call center lenders do a better job upfront of calming all parties? By issuing true pre-approvals where credit, income, and assets have been reviewed and approved by a decision maker and by communicating clear closing expectations once a property appraisal has been received and reviewed.

Are Cost of Living expenses inhibiting top talent from joining your company?

benefits

Big cities want big talent, but recruiting efforts at top universities can reach gridlock when cost of living comes into play.  While you can’t control the cost of housing, there are many ways to leverage the opportunities at your organization beginning with a best-in-class welcoming committee to lead the way.  Your benefits coordinator can enhance the recruiting experience by proactively:

1. Arranging a cost-free package including:

    • Discounted memberships to the opera, museum’s, theatre, and the gym.
    • Rate reductions for insurance, commuter and parking services.
    • Purchase discount programs through retailers such as Apple, AT&T, Hertz, FedEx, Dell and Microsoft

2.  Removing the hurdles. Too many companies make the mistake of blocking solicitations from willing vendors. Make it easy by posting your submittal requirements online and welcome new opportunities. How else will you learn what’s available? An excellent example of this concept is the Employee Perks & Discounts offered at the University of South Florida.

3.  Avoiding exclusivity – It isn’t in your employees best interests to turn away new offerings because an established vendor is asking for exclusivity.  When entering into agreements with banks or credit unions, stipulate that you maintain the option to allow other financial institutions to complement their product offerings with expanded opportunities for your staff.

4.  Research local Mortgage Providers – Know which lenders can provide pre-employment financing with just an offer letter. Know which lenders have reduced down payment requirements for recent graduates. Know which lenders offer loan programs that exclude monthly payments on student loans when calculating debt to income ratio’s.

While opportunities for “No Money Down” mortgages are usually limited to persons earning no more than 80% of the median county income, some lenders offer specialty programs for higher income earners.  National and regional lenders offering low down payment programs with no mortgage insurance to doctors and lawyers are BB&T, Fifth Third Bank, BBVA Compass, Bank of America, Citi Private Bank, SunTrust, and PNC. Each having different program parameters (profession, maximum loan amount, maximum years out of school/residency, minimum credit score, partnership requirements, etc).

If you’re a recent college graduate (<3 years out of school/residency) in any field, and considering your housing options in either Florida, New York, New Jersey or Connecticut, contact me for a free consultation on fixed or adjustable rate loan programs, with just a 10% down payment, up to $2,000,000 with no mortgage insurance requirement. Offer letters allowed. Primary residence purchase only for US residents or permanent residents. Non-permanent residents can inquire about foreign national financing options with a minimum down payment of 30%.

Apoyando Nuestra Comunidad Hispana

spanish couple home buyer

Gracias al alcalde de la ciudad Doral, Luigi Boria y su esposa Graciela, por presentarme hoy a su amiga, educadora, traductora y propietaria de Face to Face Languages, la Sra. Bélgica Collado Casimiro esta tarde en la ventaja apoyando la Fundación Monseñor Felipe Bello, Donando Sonrisas. Tengo esperanzas de trabajar con la Sra. Collado en los próximos meses para la traducción a lenguaje español el libro titulado, Mortgage Intelligence: The Definitive Guide to Loan Approval, con fin de traer el mensaje de los trámites necesarios para la aprobación de préstamos hipotecarios a nuestra comunidad hispana.

Para actualizaciones sobre presentación del libro, favor seguir la página de Facebook o suscribirse a mi boletín de noticias.