So 203K's are all the buzz!!!Â Great!Â We knew this was going to happen.Â Dinged and dented inventory is UP...Â Interest Rates and qualification requirements are DOWN!
But why is it that only a fraction of these loans actually make it to the settlement table?
Well the answer is simple...Â You were working with the wrong professional.Â
Lets be clear, in today's information world, it doesn't take much to put up a website and claim that you are a this or a that. It is not hard to promote oneself as being an "industry leader" in something.Â I mean the truth is, there are SO many people out there blogging and giving information and opinions, I'm sure many of these "industry leaders" are taking their muses from other folk and passing it off as their own. Why not, happens all the time.
So how do you KNOW someone can get your 203K or other renovation loan closed and ACTUALLY has experience?Â Â
DING DING DING... Story time!
I happen to know of a lender that has an amazing website. This particular lender touts itself as a leader in 203K renovation loans. They even boast on their website items that say "Years of Experience" and "Direct Underwriting" and fun catch phrases like that.Â Â I did some mystery shopping the other day and just called as an unknowing consumer and asked about the, "F H of A loan that lets me fix a place!"Â Â Well, I said I had heard about how many lenders are trying to figure them out and really have no experience and the horror stories that come from finding out months down the road that there is NO progress and the continued asking for things until finally, the loan is rejected!Â They said, "Well of course, Sir, that would NEVER happen here."
So, I started a few questions:
1.Â "Well, can I first start with a few questions?Â What is your NMLS ID number?"
This puts them on notice.Â Like asking a telemarketer for their operator number before you will continue.
2.Â "Will you be working on my loan directly or referring me to a department?"
This is important information to know!Â Don't you want to talk to the Loan "Officer" you would be working with directly?
3.Â "How many 203K loans have your personally settled?"
This is a very direct question.Â You want to know if this person has experience in settling 203K's.Â Be direct. how many have you SETTLED?Â
4.Â "What HUD 203K Consultants do you work with?Â Will you provide me with a list?"
This will let them know at this point, you mean business.Â If they stammer or stutter or say they are not sure, there may be a cause for concern at this point.
5.Â "Would you be inclined to send me a vitae/resume, and put your personal 203K experience in writing, including the total and recent number of 203K loans settled?"
This is the final straw. If they are doing HUD loans and are serious about your business, they will jump through this hoop.Â BE WARNED... they will not be used to this. They typically have not been asked for this.Â IF you are going to have a medical procedure done, don't you want to make sure you are not working with someone who only had a webinar training?Â If you are going to go tandem skydiving for the first time in your life, don't you want to know this isn't the jumpmaster's first Geronimo!
Â This is not different.Â The truth is folks (buyers & agents alike), if this lender is worth their salt, as far as 203K's go, they will COMPLETELY understand why you are asking for this information and gladly provide it.Â I OFFER it to every customer and actually include it along with my prequal letter to the agents and asset managers to make them feel comfortable with my experience.
Enjoy life, have fun... Renovate Real Estate!