813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Real Estate / 4 Important Tips for Realtors: Ensuring a Smooth Mortgage Process

4 Important Tips for Realtors: Ensuring a Smooth Mortgage Process

September 9, 2014 By Mary Catchur

Home For Sale Sign
Photo Credit: Mark Moz/Flickr/CC.

We are very fortunate to work with a number of experienced and efficient Realtors who know how to make the home buying process as stress free as possible for their buyers. Not only do they know how to navigate the steps of finding the right home, negotiating the contract, and arranging the necessary inspections, etc., but they also know how to prepare buyers/properties for the mortgage process and ensure that all critical information relating to the property is promptly relayed to the lender. We don’t expect our Realtors to be experts on the mortgage process. We are more than happy to educate and guide both Realtors and borrowers, but there are some simple things that they can do to prevent last minute surprises or delays.

#1 Prepare the Contract Properly Regarding Financing Alternatives

Prepare the contract properly with regard to financing alternatives and provide the related contract addendums. Most standard contracts will indicate whether the financing is going to be conventional, FHA, VA, etc. Make sure that you know the type of financing the buyer is applying for and indicate it on the contract. This is typically indicated on the mortgage pre-qualification. If the financing is FHA or VA there is a financing addendum that must be completed. This addendum MUST be dated on or before the contract date by all parties. Not providing this addendum or having it dated after the contract date can cause delays.

#2 Convey Important Factors About the Property to the Lender

Be aware of important factors relating to the property and promptly convey them to the lender such as:

Property Flips – If the property was recently acquired by the seller, there may be additional documentation needed, or possibly even a second appraisal. If a second appraisal is required, the buyer is not permitted to pay for it. Negotiations should be made to determine who will incur the additional expense and the seller should be made aware of the need to provide documentation to justify a significant increase in the sales price since the last purchase. Always let your lender know upfront when you have a property that was purchased within the last 6 months.

Discussing this upfront with the buyer and the seller will help to avoid delays and set proper expectations for both parties.

Property Type – Some properties such as modular homes, condos, new construction, etc. may have financing requirements that are different than a single family home. Although the lender should inquire as to the type of property during the pre-qualification process, I have seen situations where buyers were pre-qualified by a lender for a single family residence and ended up placing an offer on a condo not realizing the terms/rate for the actual property were significantly different than what they were quoted or approved to purchase. In some cases financing may not even be available. For instance, a condominium must be FHA approved in order to use FHA financing. In some areas there are a limited number of FHA approved condos. Unless the borrower can qualify under a different program, they may be prevented from buying that particular property.

Repairs – This is one of the more common pitfalls. We receive a lot of calls about whether or not a property will qualify for financing due to the needed repairs. Sometimes this is a tough call and requirements vary by lender and by programs. While the differences between FHA and conventional guidelines are not as significant as they once were, there are still some repair items that may not need to be done for a conventional loan, but would not pass the “health and safety” standards of the FHA loan. Many repair issues will prevent buying under either program – such as a bad roof, or no working heat in the home. It is also possible that homeowners insurance will not be available. This is one area where an experienced Realtor can really help. Whenever possible, repair items should be dealt with before the lender orders the appraisal. Otherwise, the appraiser will issue an appraisal that is “subject to” the items that are requiring repair. The repairs must then be made and additional cost and time incurred for the appraiser to go back out to do a final inspection and ensure that they were done properly. In addition to making sure that repairs are taken care of, the Realtor should make sure that electricity is on and there is running water. Pools should also be functioning with clean water. With the numerous properties on the market that have been vacant and neglected with regard to maintenance, these issues are quite common. And once again, communication is the key. Make sure that the lender is aware of potential problems with the property, so they can plan accordingly.

#3 Notify the Lender if any of the Parties will not be Physically Present at Closing

If any of the parties to the transaction will not be physically present at the closing and a mail away or power of attorney will be required, notify the lender as soon as this is known. Mail aways require that the loan package be available earlier to ensure that there is time to get the documents back from the party that is not present. A power of attorney may require pre-approval by the lender. In addition, some sellers, particularly bank owned property sellers, require more lead time for receipt of the loan package and approval than others. These timing requirements should also be communicated at the beginning of the process.

#4 Make Sure Your Buyer is Committed to Complete the Purchase

Make sure your buyer is committed to and understands the time and effort that will be required on their part to complete the purchase. While we routinely counsel our buyers on what will be expected of them during the loan process, we are often surprised at the number of buyers who plan vacations or have previously scheduled out of town work commitments during the 30 days following application. When a buyer is focused and responsive to our requests, the loan goes smoothly and typically closes in less than 30 days. On the other hand we have had situations where buyers are not accessible or take days and even weeks to respond to requests for documents. Most contracts have specified dates for completion of each phase of the process, from inspections to appraisals to loan commitment to closing. We make it our priority to meet or exceed each of those deadlines, but our job cannot be completed without the cooperation of all parties involved. Even if the parties to the transaction are amenable to extending deadlines, once the buyer has locked into an interest rate, it may be costly to extend that deadline. We understand that the Realtor also cannot control these situations, but we find that those who do help to reinforce the importance of committing to the process enjoy a more stress free transaction.

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Real Estate Tagged With: Tips for Realtors

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!



    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • Dan Underwood: Home Loan Process | Would Use Marimark Mortgage Over and Again
    • Why are there often big differences between interest rates quoted online?
    • Advantages and Disadvantages of an FHA Home Mortgage
    • 6 Tips To Get The Lowest Mortgage Rate
    • Why Might You Need an Appraisal? How Do Appraisals Work?

    © 2022 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.