Whether you’re going for an initial mortgage or refinance, the process is complicated and consists of many steps that you take on your way toward the settlement table.
Having a good partner in lending is important. Having someone who is in your corner to guide you through the ins and outs of the lending process is crucial to your success at settlement.
Identifying Your Best Interests
One of the first things that borrowers have to do in looking at a particular lending market is to figure out what they need to satisfy their own real estate strategy.
Everyone’s needs are different – people with various amounts of income and assets want tailored loan choices that offer them the best mix of base interest rates, points and lending terms that will complement their finances and their strategic investment.
Finding this optimal arrangement is not usually a one-step process. It takes work and research, and that’s where good consulting and guidance come in handy and effective.
Qualifying and Underwriting
After the borrower has thoroughly identified what he or she wants and needs out of a lending agreement, the opposite has to occur. The borrower has to find out what kind of purchasing power they have, and what leverage they bring to settlement. A different way to say this is that they need to figure out how to satisfy the lender’s requirements and concerns.
These days, in the wake of the subprime mortgage debacle, the lender has significant requirements that borrowers have to comply with. Many of these are spelled out in a process called underwriting.
Here’s where it gets tricky. Without a very deliberate 100% clear communication process and effective documentation procedures, underwriting starts to experience what we call a breakdown. If even one portion of the underwriting documentation is lost, inaccurate, or not completely filled out, or if there’s any other concern that the lender has, the process starts to suffer. Borrowers are often first warned of this by questions from an underwriting department delivered through a mortgage lender or lender rep.
This is another area where we help our borrowers to proceed confidently, knowing that the underwriting is solid and that they will not be derailed by small bits and pieces of erroneous information or a lack of a coherent process.
The Devil is in the Details
You may have heard this old saying before, but it’s profoundly true in real estate deals.
From title work to legal assistance, there are various types of elements that have to be fully documented and researched in a real estate lending agreement.
Let TriStar help: we can provide the guidance that you need for a successful result.
