This post is inspired by the challenges some
Agents face when trying to
close a sale for their home buyer clients, particularly with
distressed property sales. The tight timelines and high per diem fees and penalties that these
foreclosure sellers are putting on home buyers is getting
less favorable for the buyer.
I'll begin by noting that this post is not directed to cash buyers, only the home buyers who are
seeking financing to purchase their home.
This situation has been a topic I've had with many
fellow Real Estate Agents and read in blog posts, articles,
Agents' websites, etc. and the majority of the Agents require their clients to speak with a loan officer or mortgage banker before they will begin showing them homes and writing up sales contracts..
The problem begins with our online marketing and the
fact that home buyers are starting their home searches online.
We have to market ourselves online to get exposure to gain new clients, the problem with that marketing is the way that it's set up. The
buyers see a house they like at a price they think they can afford and walla some
Agent's names, photos & contact information is right there for them to click to contact us for what they think is a
showing appointment with no advanced preparation on the buyer's end to secure payment for the purchase.
Don't get me wrong, I love the real estate websites marketing services, I use Zillow, Trulia & Movoto and half of my business is from online prospects while the other half is from referrals from past clients so it's a very important part of my business. The problem is when we inquire as to how the purchase will be paid for,
the potential buyer puts a wall up or they get offended.
We would possibly be overseeing the transaction for most likely the
largest purchase of your life, you should
definitely feel comfortable discussing with us how it's going to be funded.
So
home buyers if you don't listen to any other advice that comes from your Real Estate Agent, listen to this-there's nothing worse than to have paid $300-$500 for a home inspection; 1% of the purchase price for an earnest money deposit; money for surveys and whatever other fees you may have paid to purchase the home-then get down to just
days before the closing and
underwriting denies the loan.
It's just better with such a major purchase and
so much time, money and emotions that are involved in the
home buying process to be
well prepared in advance, don't you think?
So potential
home buyers in Georgia get your
last 2-3 years tax returns; last 2-3 months of bank statements; last 2-3 months of check stubs and ID copies together, then call, text or email me so I can guide you in the most rewarding home buying experience ever,
beginning with full underwriting approval, not just a pre-qual letter. We can see some homes, but no contracts will be written without a pre-approval letter first and this
is in
your best interest. The scenarios below will show you why:
1, You begin your home search in May; You find a home you love in June and you want to submit an offer on it; the seller is a bank and they will only give you
30 days to close and charge $100 daily per diem fee to you for every day that you go past the agreed upon closing date; you feel secure with the terms because you have a pre-qual letter; 2 weeks later the loan officer asks for updated bank statements, you turn those in; 3 days after that the loan officer tells you your
debt to income ratio is too high so you pay off $3,000 of your debt; a week later the loan officer tells you your job won't verify the full amount of income that you gave to get the pre-qual letter so they can't approve you for the purchase price of the home that you're under contract to buy; 4 days later the income issue gets resolved but the HOA hasn't given the closing letter yet; 10 days later the HOA sends the letter; 2 days before your new closing date underwriting discovers a new major purchase on your credit report, denies the loan and you can't buy the home. At this point you've spent $3000 EM deposit+$500 inspections+$500 appraisal+$50 homeowner's insurance+$3000 debt paydown+$1000 per diem fees=$8050 and still no house.These scenarios really do happen with the strict underwriting regulations that are imposed today and I read and hear horror stories from other Agents about it daily. Which is why I'll require my buyers get full underwriting approval before we go "under contract"
Agents and home buyers who have stories to share regarding their home buying or selling experience, I'd love to hear them, please post a comment.
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Priscilla Hammond
1st Choice Premier Realty Group
Maximum One Realty Greater Atlanta
Mobile 770.568.8932
Mobile 404.503.6562
Office 770.919.8825 press 1 for the dial by name directory then enter ham for my last name
2012ATL@gmail.com
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