Don’t be left at the alter without a loan! The Tampa real estate market is seeing a high percentage of transactions fall apart during the contract process due to financing issues. One thing we have learned over the years holds true: “Promises and personalities do not ensure success, process does”.
To avoid the pitfalls below, Team Bohannon used a Home Buying System to ensure the lender has the processes, performance guarantees, and communication in place to protect against these 12 Unpleasant Mortgage Surprises.
- The loan program you were quoted is no longer available.
- The loan was not locked interest rate floated above your approved rate.
- The Good Faith Estimate doesn’t match the final fees.
- Closing Costs were not estimated based upon local customs.
- Neighborhood CDDs were not figured into closing costs.
- The home does not appraise for the purchase price.
- The appraisal is late.
- The loan isn’t approved on time.
- Unreasonable last minute requests for buyer documentation.
- Underwriters do not approve financing at the last moment.
- Contributions toward closing costs are disallowed at the last moment.
- The company goes out of business during the transaction.
- Key personnel leave the company delaying the approval process.
- The conditional loan commitment was mistaken for a full loan approval.
When a lender examines your credit, they are assuming that your credit score will not drop between initial preapproval and final underwriting. They are also assuming that you will not be making any major purchases such as furniture or cars in between contract and closing.
What steps can you take to avoid these issues? For starters, do not make the mistake of selecting a lender based solely on the interest rate or by passing acquaintance. As part of our value added services, we walk you though qualitative and quantitative comparisons of loan options for your new Tampa Bay home. While we cannot control every company and person involved in the loan approval process, our Home Buying System is designed to pro-actively manage all the variables that could signal trouble.
For the quantitative analysis, our system uses the a Lender Comparison Matrix to analyze the Good Faith Estimates (GFEs) from leading lenders. The LCM provides a detailed costs comparison that can help uncover hidden costs. This organized and systematic process helps remove the guesswork and select the best loan for your overall goals.
For the qualitative analysis, we focus on the track record and business practices of the loan officers and their lending institutions. Low interest rates are great, but can they deliver on time, without surprises, and will they call you back? Is the processor and underwriter based locally, or are you at the mercy of a far off processing center? How much knowledge and experience does that loan officer have? What are the chances the company will still be in business by closing, or the contacts will still be at the company?
Contact Team Bohannon at Coldwell Banker today at (813) 979-4963 for a information on obtaining the best loan.
