Imagine you’re sitting at the closing table ready to purchase your dream home. Everything you own is in a truck sitting outside. You’ve turned in the keys to your previous living space and a thought just crossed your mind…your homeless! Your excited to begin your new life and ready to sign anything they put in front of you.
The Escrow officer walks in with what looks to be a mountain of paperwork that needs to be signed. As they begin to sit down the Seller of your dream home asks. Has the Buyer’s funds from the lender been received by your office? The Escrow Officer says why NO, I just spoke with the Lender and we are waiting on confirmation it was sent. We should receive the funds before we are done signing. The Seller stands up with their Real Estate Agent and says you are officially in default, then proceeds to walk out of the room with your dream home and your $4,000.00 of earnest money.
Yes, this can happen and yes it has happened! This is why choosing a Local Mortgage Lender might be your best option. Ensure your Lender is aware Colorado is a good funds state meaning all funds must be received at the TIME of closing.
Somethings to think about when Choosing a Lender;
- Will you speak with the same representative that is directly involved in your loan and not reading an update report from a call center?
- How accessible are they to your Real Estate Agent and yourself?
- Do they know or have relationships with Colorado Appraisers? This will be of great importance with the short inventory market we are experiencing here in Colorado.
- Are they accessible over the weekend to provide your Real Estate Agent with a Pre-Approval letter? You never want a “form letter” for more than the purchase price. You’ve just notified the Seller you can pay more. Additionally, if your competing for the home, you might have to have your offer in ASAP. I always require a Lender Letter from any potential Buyer on my listings prior to having my Seller take the offer seriously.
- Can the Listing agent of the home you wish to purchase call, verify and receive confidence the loan will be completed on time? I personally call on every one of my listings prior to my Seller accepting one offer over another.
- Who are the Lenders team members? Does the right hand know what the left hand is doing?
- Are they educated in every type of loan available you qualify for or are they trying to put the square peg in the round hole? Ensure your Lender is qualified to originate every type of loan that you are available for including loans from the USDA and CHFA. Just because they didn’t offer those types of loans, doesn’t mean you’re not qualified.
- Be sure to verify all costs of each loan to ensure the loans are comparable. I’ve helped buyers avoid a short term gain on closing costs that could have potentially cost my Buyers thousands of dollars in the years ahead.
- Are they invested in You, Your Family and Your dream for home Ownership? I want a team member that is as passionate as I am to ensure a successful purchase.
- Will a representative be present at closing? As I illustrated earlier, having a Lender present to handle any problems can be the difference between your dream home and disaster.
In closing, ensure everyone that is involved in the purchase process of your home is passionately invested in your dream for HOME OWNERSHIP.