buyers loanIt is March, 2016 and even with the apparent impending doom of Planet X coming this way, people are gearing up to buy houses! Yes, it’s that time of year again already but the problem is, inventory is so low right now that many people are trying to find the house they want before they have even sold theirs! Nobody wants to sell their house and not be able to find another one.

Now, as a consultant for real estate agents and mortgage companies, my job is to connect realtors with mortgage companies; to bring people together for mutually beneficial relationships I believe have the potential to take off and last long term. I help mortgage banks and agents with marketing and lots of other things and lately in my efforts to get agents interested in one of my clients that has a growing reputation for getting loans clear to close in 7 to 10 days, I either get laughed at or told “my purchase contracts are typically for 30 to 45 days anyway”.  So, I think to myself, either this agent doesn’t “Get it” or they really dont care.

So, lets take the 30-45 day agent in today’s market. They have a buyer looking for property. They also need to sell their home. They find the house they want but that seller needs to find another home before they can close.

Home buyer A wants to buy from Seller A, Seller A wants to buy from Seller B. Seller B wants to buy from Seller C who is buying from Seller D. This could go on…so lets say that by the end of the chain, you have 8 families, all of which are tied to the successful funding of one or more loans closing on time. I say this because this actually just happened to someone I spoke with which inspired this article.

Now, on your 30-45 day contract, you get to the last minute (which is typically the case) and something comes up with Buyer A. It’s going to take another week to fix this last minute issue because the bank was in no hurry to close as usual and now you have multiple families scrambling trying to make everything work in the chain with some living in hotels while their stuff sits in storage or a big truck, etc.

Had they simply been working with a lender known for getting clear to close in less than two weeks and an issue popped up at the last minute, maybe they wouldn’t have closed in 7 to 10 days, but they would have 2 weeks to deal with the problem and everyone is still happy.

So, maybe something like this doesn’t happen but once or twice a year to a busy agent, at least to this magnitude. The idea is, it never has to happen. Whats more? Why wouldn’t you want to work with a lender you know you could rely on to get things clear to close quickly (even post TRID) just for the sheer comfort of knowing your buyers loan is closing as soon as you are ready as opposed to being left to wonder until the very last minute as you try constantly to get your current loan officer on the phone for days on end?

Does being able to close a loan in less than two weeks mean you need to write your contracts as such? Not at all. It means your 30 day contract doesn’t have to be and should an issue arise, you don’t have to deal with back to back extensions while trying to get it resolved! It means, if you are an agent that does a lot of buyer business every year that you can reduce the stress and time you have to spend putting out fires to get things done. It means having peace of mind and being more in control of your buyers situations which in turn makes you look like a super star because like you, as an agent, if you haven’t worked with a mortgage lender capable of closing loans this fast, your buyers likely haven’t either and will be impressed with your “Connections”.

As we head into the busy seasons of the year, I encourage you to take the 7-10 day challenge this year. Call me (513-258-3545), email me or text me, right now. I’ll connect you with an NRL Mortgage banker in Ohio, Indiana or Kentucky and once you have seen how quickly mortgage loans can actually close, let me know by the end of the summer how drastically different this year was than your last. I mean it. You’ll never go back to your old ways again, that much I’m sure.

A couple things I hear from agents:

Q. So, NRL Mortgage can close loans fast. Their costs must be high then right?

A. Wrong. While they likely can’t beat one or two of the lenders in various markets in rate who are basically buying the market to get first crack at every deal while spitting out the rest at the last minute, they are one of few private lender still closing $50,000 refinance loans while other private lenders wont go less than $75,000 to $100,000. The lower your loan amount, the more difficult it is to pass high cost ratios which many private lenders don’t like.

Q. My buyers often come to me pre-approved already. Most of the time its with “X” lender that I hate dealing with.

A. I tell agents that when a buyer comes pre-approved, especially with an unknown lender or a lender you hate dealing with, that its best to encourage them to at least get Pre-Qualified with NRL Mortgage as well. For one, it’s so that its already done and out of the way should a problem arise at the last minute with the other lender and second, it gives the NRL Mortgage Loan Officer the opportunity to impress your buyer with their knowledge, experience and dedication to maintaining your buyers best interests. Finally, it gives NRL an opportunity to beat the rate they have been quoted from their current lender which happens often as well. In a nutshell, you wouldn’t just leave a doctor’s office after a serious diagnosis without a second opinion and you should have one on your mortgage as well.

If you’re a real estate agent, do yourself a favor and reach out to me. You’ll then have a brief meeting with a mortgage loan officer that could truly help make 2016 the best year you’ve had to date.

Jason Appleton 513-258-3545