Realt Estate Agents: The Primary Source of Information on Home Purchase
You as a Real Estate Agent are the first person a home buyer turns to when they want to purchase their home. You help them make their wish list come true. You do your research and show them homes that match that wish list. But what about the funds that are needed to purchase that home? How can you help them understand the process of purchasing a home and what is needed to get there? You are not a mortgage lender or loan officer so how can you help them?One way is to partner with a few lenders that have shown integrity and great customer service to prospective buyers. And you can find these lenders in many ways. Your past clients have probably come back to you after the sale and shared with you their experience, be it good or bad, with the lender. Some lenders actually come to your office and teach a broad view of the lending process. Not that that makes you a mortgage lender, but it does give you answers to most of the common questions that a buyer might have.So, when a family or individual is thinking about a refi or the purchase of a home, what are some of the questions that could be asked? Let’s look at some of the questions your buyer may have and some of the answers that you can give, even though you are not a lender.
- Residence History
- Employment/Income History
- Credit History
- Assets
- Other Miscellaneous Issues
- Loan Products and Specialty Programs
- What is needed to apply
The “Credit” and “What is needed to apply” are probably the two most asked questions that weigh on buyers’ minds. But let’s start at the top and cover all of the points. They are all important.RESIDENT HISTORY: A client needs to show a history of payments. How can a buyer show that they have made mortgage or rentals payments? It can be done by a cancelled check. If payments have not been made this way but with an automatic withdraw, cash or cashier’s check, the future home owner can ask for an itemized statement from the mortgage company or leaser.
This history not only shows what amount was paid but also the date of payment. Being on time is imperative. A late notice of payment can mar their payment history. Late payments are looked at by the lender very closely. Make sure the client understands how important it is to make their payments on time and if possible a few days before the due date.
If there have been delinquencies, have the client write a letter of explanation. A letter of explanation can go a long way with the lender when they know the reasons why the buyer could not make a payment on time. Also try to show at least a two year history of payments. Why you ask? Two years will give a pretty good picture of the buyers’ pattern in paying. A good pattern will show a better picture of reliability no matter what time of the year.This may have been a very easy answer to the Residence History but your client will be very appreciative hearing it from you.
On the next installment, Employment/Income History.
Until then……Patriot Professionals
Realty Support from Showing to Closing
www.PatriotProfessionals.com
