Published: February 23, 2008 10:58 pm      

Three 'R's' of home finance important when purchasing a home

EDMOND — Among the most important business resources any Realtor develops are those they form with mortgage providers. Most Realtors have trusting relationships built with several mortgage professionals. The importance of these industry contacts has become more important in recent years.

Since 2003 home mortgage interest rates have been at or beneath historic lows. The allure of “cheap money” has drawn many potential new homeowners into the hunt to fulfill the American dream of home ownership. Among these are many who need help finding a trustworthy source for financing.

Professional Realtors take their responsibilities quite seriously and can provide valuable insight to the homebuyer for just about every aspect of the transaction. Each home purchase has things that make it distinctive from any other home purchase. There are physical differences in each home as well as variations in the way the home has been kept. But the most dramatic difference brought to each home sale is the buyer’s qualifications for financing.

For this reason alone it is important both to the Realtor and the homebuyer to find a mortgage provider whose business embraces the three “R’s” of home financing. Making sure the person providing your financing operates according to these three guidelines will make your home purchase less stressful and will provide you with a surprise free mortgage.



Responsive

Every home buying situation is in some way unique. Before anyone can be truly responsive they must first understand you and your specific needs. One of the surest ways to know someone doesn’t yet understand you is when he quickly responds to your request by saying, “I understand.” The responsive mortgage provider asks a lot of questions and clarifies the customer’s answers until together they reach a concert of agreement. Only then can an appropriate loan be structured.

Once the loan is arranged and the origination documents are signed, the level of required responsiveness is not reduced. The mortgage provider will have many conversations with both the homebuyer and the Realtor. If the home purchase is to close on time, it is vital for the loan officer to not only be proactive in making the requests for necessary documentation, but also to return all calls in a timely manner.



Reliable

Another way to communicate reliability is integrity; fulfilling the promises that are made. All parties involved in the sale of a home depend on the reliability of the mortgage provider. The seller trusts that the pre-approval letter provided by the loan officer is authentic. This letter allows the seller to relax knowing their home is as good as sold.

The buyer trusts the pre-approval to mean that nothing will keep him from owning the home he has chosen. He also trusts that the terms agreed to at origination will be the same that he finds when he goes to closing.

The reputation of the Realtor with the seller, the buyer and the other Realtor — if one is involved — also depends on the reliability of the mortgage provider’s ability to deliver what was promised.



Resourceful

The home purchase transaction is a dynamic process. Contract negotiations lead to an agreement on the selling price, repair budget caps, inclusions and exclusions as well as closing dates and times. But the dynamic nature of the transaction continues throughout the inspections and the appraisal.

There are instances when a home’s appraisal will not pass the review of an underwriter. At these times the mortgage provider must have an alternate source for financing that provides the same rate and terms as promised.

In some cases letters must be written to explain specific details about the buyer’s income or liabilities. The resourceful loan officer will help the buyer write these letters in ways that clearly communicate with the underwriter.

Once you have found a Realtor you trust, it’s usually safe to reference his list of financing referrals to find a mortgage provider who knows and operates according to the three “R’s” of home finance.



TREY BOWDEN is a licensed mortgage professional in Edmond.