Jim Valentine on Real Estate
Real estate has many components, each requiring its special skill set. One of the most important such components is the role of the lender.
Lenders are just like real estate agents in the sense that anybody can do the “cookie cutter” loans, but it takes a professional to handle the hiccups. Just as an agent can smooth out the bumps in negotiations and escrows, a good lender can put you in the right loan package and navigate you through the process to a timely funding.
The professional lender will be the one that doesn’t turn you down when you reach out to them to see if you can qualify and you’ve some credit baggage, rather that is the one that will probe further, ask you seemingly odd questions to see where they may be able to help you considering the reality of your circumstances. When the rest of the lending world is telling you no, they are the ones that have personal interest, will spend the time to really find out what you are about, and will find a program, or help you understand what you can do in order to qualify in the future as quickly as possible with their informative contribution to your cause.
Many potential buyers think the worst of their credit. They may have a bankruptcy, lates, a foreclosure, etc., but a good lender will probe for the circumstances and timing of all that. Credit heals with time and in this day and age of COVID-19-induced job losses, income reduction, etc., there are considerations in underwriting that wouldn’t otherwise be there. Don’t assume the worst, call a professional lender and see what you can qualify for. You may be surprised at what you can do. If that is the case, get to buying yourself a home. With the great interest rates you might find you can buy with a payment that is very close to what you are paying in rent, but now you will have the many benefits of home ownership.
Online lenders are attractive, but they are “loan mills,” and don’t always consider your best interest. Many couch their rates. Be sure to compare the true cost of your loan. One of the sad realities of our industry is that most people don’t shop their loans. They talk to a lender and they go with it without any understanding as to how that lender stacks up against their competition. It isn’t just about the service they provide, the hidden costs are where you can pay incredible sums without knowing it. Get a good local lender that you are comfortable with and ask a lot of questions.
During the loan process, remember that your loan officer is not the underwriter. As you progress in the process you will encounter the underwriter. Keep your cool. Their job is to analyze and expect the worst. They make issues out of nothing. They wouldn’t score in Scrabble, but they have control in this process so respond timely and appropriately to keep the loan process moving forward. Sometimes they don’t understand the reality of your circumstances in which case you should talk to your loan officer. LO can communicate with the underwriter and work as a translator so they understand what you are about. Amazing how many times this happens – all the more reason to work with a good local, professional loan officer.
Don’t experiment with lenders. We have many excellent professional lenders in Northern Nevada that will work hard for you, get you a good loan, and will be there in the future when you want to refinance, buy another property, or refer somebody. Find one and be confident that one component of your real estate experience is established. Your loan is essential. Your lender should be essential to you for that process. You can ask your agent for a list of good lenders, but be sure to do your own research and comparison to make sure they will be the right lender for you. The referral is a good start, make sure you make it a good finish.
Don’t trust – verify. Make sure you have the right lender. It can save you thousands of dollars and you’ll never know it if you don’t do the work.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com
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