How Important Is Accurate Information During An Inland Empire Home Purchase
With E-mail, voice-mail, mobile phones, text messaging and so many other avenues an Inland Empire real estate professional has at their finger tips; one would wonder how a near critical error can happen in the eleventh hour of a real estate transaction. When just some basic professional guidelines are followed, this should never happen.
Before even originating a recent loan, I needed to provide a loan comparison between an FHA loan and a Fannie Mae HomePath loan on the purchase of a Fannie Mae REO. We determined the FHA loan would be the best loan option for the buyer.
However, the offer had already been written and an addendum to the contract changing the financing needed to be sent to the listing agent. This never happened and the following events could have been avoided if a simple e-mail with an attached addendum had been sent from the very beginning.
Once the appraisal was completed, there were a few items that needed to be repaired. However, Fannie Mae would not pay for the repairs and it was suggested the seller paid closing costs could be reduced by the amount of the repairs, all parties agreed to this. I was never informed of this change until after loan documents had been delivered to escrow and we were 7 days away from closing.
Because the seller paid closing costs were reduced, the documented funds to close from the buyers were no longer sufficient to cover the costs of buying the house. The only way to cover these additional costs and close on time; the agents needed to contribute part of their commissions to the repair costs.
Even though these costs were less than $1000, this could have been avoided all together with just a little communication from the start. There was plenty of time to make some adjustments to several different aspects of the purchase.
Whether you are a buyer, seller, listing or selling agent or the loan officer; communicate often and clearly with accurate information. This could be the difference in closing on time or losing income due to a simple mistake. If you have any questions about the home loan process, please do not hesitate to contact me at anytime.
January 16, 2011 by Mark Estermyer · Leave a Comment
Mark Estermyer is a Senior Loan Officer with over 14 years experience in the mortgage lending industry. Mark's team works for RPM Mortgage, a private mortgage banker. At RPM Mortgage, we offer FHA, VA, all conforming and non-conforming loans. However our specialty are the Jumbo and High-Balance Conforming Loans. Mark can be reached at (909) 863-0000 or by email marke@pchfund.com.
