“Top 10” Job Duties
In their lifetime, the average home owner may deal with 4 or 5 lenders (perhaps a few more these days, given serial refinancing at ever-lower rates).
By contrast, a busy, experienced Realtor can easily deal with 15-20 lenders in a year, on both sides of deals (that is, as both a listing agent and a Buyer’s agent).
Suffice to say, it’s the Realtor who’s in a better position to judge which lenders know their stuff — and which ones don’t.
With that as prelude, here is my “Top 10” list of key lender roles:
10. Expert on the myriad loan programs, their terms, and provisions that are now available to Buyers. See, “Your Mileage Points May Vary.” Can qualify even hard-to-qualify Buyers.
9. Issues a Pre-Approval Letter promptly to the Buyer’s agent, so that they can include it with the Buyer’s offer (a prerequisite since . . forever). Customizes the Pre-Approval Letter for the specific address, offer price (vs. generic boilerplate).
8. If the Buyer is in multiple offers, is available to speak to the Listing agent to “sell” the Buyer’s creditworthiness and loan product.
7. Even if the Buyer is not in multiple offers, the lender is available to field the Listing Agent’s phone call and questions (note: when I receive an offer on a listing, my first call isn’t to my client . . . it’s to the Buyer’s lender). See, “Listing Agents Who Call the Buyer’s Lender.”
6. Provides required disclosures (Truth-in-Lending, Good Faith Estimate) to the Buyer on a timely basis.
Behind-the Scenes Role
5. Is aware of the Written Statement deadline, and keeps the underwriting process moving along on a timely basis.
4. Knows market interest rates, trade-off’s between fees vs. buying down points, pros & cons of various loan types (fixed, variable, jumbo, etc.). Is willing and able to track the market for the Buyer before they lock.
3. If the property is a Common Interest Community (townhome or condo), is communicative with the Buyer’s agent regarding required paperwork.
2. Keeps the Buyer and their agent informed about the property’s appraisal, and makes sure that it’s ordered on a timely basis (see #5).
1. Has the loan funds available at closing.
Notice that nowhere on the foregoing list is “charges the lowest fees” or “gets the lowest interest rate” for clients.
While those are both very important criteria, a terrific interest rate on a home you don’t close on — or lose out on in multiple offers — ain’t such a great deal.
