Housing Comp’s vs. Lender Comp’s To Realtors, a Comp (“Comparable Sold Property”) is a nearby, recently sold home similar in size, style, and condition to the “subject home” (the home being valued). What’s a “Comp” to a lender? The borrower’s annual income for any given year. Excluding a Harmful Comp Just like the key to...Read More
Allowing Enough Time Test your knowledge of the residential mortgage process, and answer the following question: For lenders underwriting a mortgage, what is the key date in a transaction? A. When the Purchase Agreement is finally accepted (it’s officially a “done deal”). B. When the Inspection Contingency is removed. C. The Written Statement deadline specified...Read More
“Relationship Shorthand” What’s the opposite of “guilt by association?” “Honor by association.” How does that play out in residential real estate? When, as a listing agent (representing the Seller), the Buyer’s agent, lender, inspector, and title company all check out with flying colors . . . it’s highly likely that the Buyer ultimately will, too. Of...Read More
Other “Votes”: the Lender, Local Municipality, and Insurer Unbeknownst to the Seller, the Buyer’s inspection uncovered a material problem with their home that the parties agree should be fixed. When that happens, who takes care of it? The short answer: “whomever the parties agree” (at least if no one else has a say — see...Read More
. . . . Or One Realtors representing Sellers (better known as “listing agents”) tend to be a lot more focused on Written Statements — and specifically, Written Statement deadlines — than their clients. There are two reasons for that: 1) it can be a technical subject (see below); and 2) most Buyers’ lenders meet...Read More
Determining Whether Buyers are “RWA” (“Ready, Willing and Able”) I don’t know about other listing agents, but when prospects come through my Sunday open’s, I quiz them (gently) to see whether they’re “ready, willing, and able.” Here’s what I mean by that: “Ready“: The prospect wants (needs) to buy now — not six months (or two...Read More
