Questions for your Lender

Questions for your Lender
By Steve Meyers
August 15, 2014

Prior to executing a Purchase and Sale Agreement with a Buyer, the Listing Agent will / should be calling the Lender for the Buyer (the borrower) and confirming a number of items regarding the viability of that Buyer purchasing the property. If you’re the Buyer, you should confirm these items with your Lender prior to submitting an Offer to Purchase.

a.) Does the Lender have all of the documentation they need to begin the loan process? Has the Borrower provided proof of their Down Payment Amount and other Assets required to close this transaction? Does the Lender have the information required to substantiate the income and expenses / debts for the last 2 years(this will be provided upon formal Loan Application after Mutual Acceptance with both parties)?

b.) Has the Lender pulled the Credit Report for the Borrower? Does the Lender have any concerns regarding the Credit Report?

c.) Has the Lender run the loan through an automated underwriting system? If so, did they receive the automated approval?

d.) Where is the loan processing performed? Is it local?

e.) Where does the Lender fund / close the loan? Is it local? If not, where does the funding / closing occur? You should know; where the loan is funded / closed, what has to happen and, what’s the time frame anticipated between when the signing occurs and when the loan can close. As an Example…after all the documents are executed, they will be sent overnight to New York City, there is a 48 hour review period and, once approved, the lender will fund the loan and wire transfer funds to the Escrow Company. This may take 4 days.

f.) What is the average closing time-line on a purchase? Can it be closed in 30 days or, is the time-line out to 45 days?

g.) Is the Borrower qualified for the loan program they have identified on the Purchase and Sale Agreement? What loan programs do the Borrowers qualify for at this time?

h.) Does the Lender have any current concerns about the File and the Borrower? How confident are they that they can gain approval for this Borrower?

If you have any comments or questions about this article, please email me at smeyers@kw.com.
If you would like to read other real estate articles I’ve written and published on-line, go to;

http://www.ourseattlehome.wordpress.com

Steve Meyers is a Managing Broker at Keller Williams Real Estate in Seattle, Washington. He can be reached at (206) 972-3328 or smeyers@kw.com.

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