Why You Should Care
If you spend your time marketing houses and finding buyers and negotiating contracts and working through property inspections and trying to list properties and keeping up with all the paperwork …….. Why the heck do you want to be involved in the financing as well?
You could consider it self-defense. Most buyers need financing to purchase a home and if the loan doesn’t close, neither will your transaction. But even if it does close how the client feels about the process will ultimately influence how they feel about you as an advisor and repeat agent.
The more you understand the loan process the better you can set expectations and support an efficient process. The loan advisor is only as good as the cooperation he receives from the other participants in the transaction. With everyone being part of the same team, the buyer experience is positive and they become your greatest sales tool.
If you understand what affect pieces of the process have on the transaction, you can work to make sure things run smoothly and end up the way you want. How the purchase agreement is written determines how the loan is structured. A consistent format through the contract, the loan and the closing statement eliminates surprises. Separating the property inspection process from the appraisal and loan process will eliminate a great deal of complication. Knowing the appropriate difference between a property inspection and an appraisal valuation is critical to a fluid process.
The difference between closing a loan in 15 working days and 30 working days is cooperation, communication and planning between all players in the process. Setting expectations and cooperative reaction to developments will keep the process on time and the clients happy.