The Realtor and the lender will also communicate to make sure key deadlines are met. To discuss any issues that may need to be addressed to ensure the appraisal comes in properly. Some examples may be providing the appraiser with information to show that having a water source from a natural spring is not unusual for an area. The agent and the lender usually coordinate getting the appraiser into the home.
The lender is also helpful in explaining any issues that may delay the closing of the transaction so that the agent can address those issues with an extension or a discussion with the other agent.
Communication between your lender and your Realtor shows that they are working as a team to make sure your home purchase happens with as little difficulty as possible. It's a good sign.
No not at all, in fact it's essential to the transaction that the agent is informed about the progress of the loan. That's basically what we want to know..because that is what the seller and the listing agent are very concerned about as well. This way we can assure the seller, that all is moving along and the property will close escrow.
Your lender pre-approves you for financing. Your realtor needs to all the caveats of how your financing is structured in order to write an offer that WILL GET ACCEPTED! In this market having the two work as one team is so so beneficial to you Cheri as a buyer. This is normal and should be expected.
Here is an example:
Let's say you have a 681Fico and are a first time home buyer. Let assume you are not a veteran and not buying rural so FHA is probably your best bet.
Normally I would offer say 3.75% (4.812% APR) on a 30-year fixed FHA and have around a 1.75% lender credit. On a $200,000 loan for example the lender credit amount to $3,500 which is credited toward your closing costs. On a typical $200,000 loan for recurring and non-recurring closing costs, your total closing costs will be somewhere in the area of about $5,000 (appraisal, loan processing, escrow, title, your homeowner's insurance, impound for your property taxes, etc.).
In this case that leaves you short by $1,500 for closing. Now assume you don't have $1,500 but you do have enough for your down payment.
What should I tell the realtor?
I would have her write the offer with your 3.5% down payment and ask the seller for a $1,500 closing cost credit. Done in this fashion, you come in with your minimum down payment and are good to go.
Communication is key. Also it is important for the realtor and lender to have worked together, in my humble opine, because both will know how the other works and the style of how the closing will go.
You are probably in good hands!
Just because a lender hands you a prequalification letter doesn't mean that your clear to go on ANY offer. There's always details still needed to be understood by the realtor to structure the right offer for you according to your financing circumstances.
I have to tell you that after many years as an investor,I finally was incented to get my own realtors license when my realtor and lender weren't working together. Because of that, I lost my earnest money deposit, (being the one responsible to execute the contract between me and the seller). It is CRITICAL to have a lender and realtor who communicate, not only with you, but with each other, to make your transaction happen smoothly.
Your Realtor needs to understand the type of loan you are getting, the amount of down payment and any restrictions in order to find you an appropriate home. Your lender will perform best when he or she is kept in the loop of your home buying process and when to provide you with information about your loan.
Good luck with your purchase.
Prior to writing an offer the agent needs to know what the terms of the loan will be so it can be put in the contract correctly, also how long the lender needs to arrange appraisal, do underwriting and close escrow, so that the dates put in the contract are doable. The lender needs to know the particulars of the property to write up the pre-approval letter that is usually required with the offer submission.
As the escrow progresses all parties need to know what is expected of them, and if any additional paperwork or repairs need to be done prior to loan approval, so communication is very, very important.
You should also be communicating with both your lender and agent to make sure you are on track. You may want to discuss with your agent and lender their expectations of you. For example your lender should tell you not to go out and make any big purchases before closing, also to make sure your deposit funds are seasoned, your agent will want to know what inspections you are having and when.
You are all on the same team working towards the same goal for you.
Generally we talk about your maximum loan limits and how much to put on the pre-approval letter. You don't want to make an offer on a property worth $200,000, for example and submit a pr- approval letter that says you can afford to pay $210,000 when you are offering $195,000. Otherwise, a seller might want you to pay list price.
After you are in contract, we communicate about the progress and your documents. For example, the lender will want a copy of the TDS, which we supply. There might be funding conditions about the property that we will need to resolve prior to closing. We might need to draw an addendum for the lender to remove or add an element to the purchase contract. We generally both attend closings.
Lyon Real Estate
First let me ask what about their communication do you find strange? Did you have any input in the selection of your lender?
Keisha Mathews, REALTORÂ®
CDPEÂ®, HRCÂ®, HAFAÂ® Certified
The Short Sale Lady(sm)
Century 21 Landmark Network
Happy house hunting!
There's a lot of information the lender needs. Much of it should have been supplied on your purchase agreement, and much of it should have been supplied by the paperwork/application you filled out. But there are always lots of loose ends and other questions that have to be resolved. The ones that related to you will come to you. But, for instance, the lender needs to send an appraiser out to the property. That's best coordinated with the Realtor. It saves you time and effort. Or there may be other things--HOA documents, or condo documents, or documents addressing easements--that need to go to the underwriter. Some of those originally came from the seller . . . but the seller has no relationship with YOUR lender, so the lender is going to be looking to you and your agent to provide that information.
To overgeneralize slightly, any questions the lender has about the property itself--the structure, the legal entity, and so on--is going to come to you. Your Realtor is providing that information to expedite the process, to save you time and hassle, as part of his/her services.
Hope that helps.