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Overcoming Mortgage Loan Obstacles: Realtor’s Role

November 15, 2010

Buyers are confused. They’ve always found the mortgage process to be confusing, but today, there’s even greater uncertainty about how to become approved for a mortgage. Realtors have a major role to play in educating and directing buyers to the right information and resources.

How Can Realtors Help Buyers Overcome Mortgage Issues?

  • Set proper expectations. Let buyers know right away if they are being realistic about the type of houses they want to purchase.  It also helps to give them information about the buying process so they realize it’s a process that requires multiple steps and sometimes an inordinate amount of detail and research into their finances.  They should be informed of their own financial condition and be ready to disclose it fully to a lender.
  • Get a lender involved early.  Many Realtors are very experienced and feel they can determine what type of financing is best. However, in this more stringent underwriting environment, it’s wise to have the buyer work directly with a lender early in the home buying process. Some obstacles that make loan approval more difficult: self-employment, temporary employment, credit history, down payment funding etc. need to be evaluated on a case-by-case basis by a lender to avoid surprises. Even buyers who would have been considered slam-dunks in the past have been turned down, so buyers and Realtors can avoid a lot of heartache and wasted time by finding out about financing early on.
  • Communicate the facts. Although buyers may be working with lenders, they also have a strong relationship with their Realtors. So, remind them that actions they take before loan closing can cause the closing to be canceled, even if they have already been approved for the loan. Common examples are: job change or loss, change from salary to commission, increase in outstanding debt, or changes to credit score. Most buyers think approval is the final step – they need to understand that financing can be withdrawn if their situation changes before the loan closes.

Let us partner with you in pre-qualifying your buyers so there are no surprises before closing.

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