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The real estate market in Orange County California has heated up with little or no inventory available. Properties are receiving multiple offers. I have some strategies to get your deal closed.
Do you want an amazing fast time frame to close a mortgage loan?
How to get your offer accepted in this current market when inventory is at a historic low?
How can you know if house will appraise for current market sale price?
How can you beat a “cash offer”?
Before you make your offer Borrower has loan Approval with either DU or LP findings. This means the only things necessary to close are appraisal, a good contract and title. This plan details how to get your offer accepted by the sellers in a market where there are many competitors.
We sit down and set a strategy for closing quickly on the ideal home for the clients. I can meet with the clients in their home, my office or by telephone. Upfront we must all understand that this is a time consuming and many pieces of paperwork to execute. Borrowers must have their bank statements in pdf formats, and I can teach them how to save the statement and download to email to my secure email. Secondarily all their income information for the past 24- 30 months must be available to submit before they make the offer. Choices such as vesting should also be prepared with thoughtful planning. Once all this is submitted to Underwriting we should have a Loan Approval (not a pre-qualification or pre-approval) ready to show with the offer in two days. If there are credit issues to address, the client must repair these before making an offer.
Offer is made with attached DU or LP findings that itemizes Borrower has submitted all documentation to close. Offer releases appraisal contingency in seven days. Offer releases loan contingency in ten days. Offer states Borrower can close in fifteen days. Offer notes that seller’s agent, listing agent agrees to meet appraiser in person on day two or three with comparables on paper and property specifications. Offer also releases contingencies on day nine. I suggest you make the offer in person and have the client release a personal statement that I will help you write. Listing agent and escrow/ title must be prepared to work quickly.
Day One: Signed conformed contract is emailed to C. G. and she orders appraisal. Email to Borrower and both agents confirming appraisal ordered and escrow has been contacted. Estimated HUD 1 ordered from escrow, also preliminary title report and title particulars to subject property. Escrow and Title agree to provide all documentation in 48 hours.
Day Two: email agents and borrower confirming appraisal appointment has been made (assuming this is not a Sunday)
Day Three: Appraiser visits home, measures the property receives information from listing agent. Title policy, escrow instructions and HUD1 are emailed to C. G.
Day Four/ Five appraisal comes in at sales price; loan is submitted to Final Underwriting. * Day Seven Final Loan approval is completed
Day Nine: Loan Documents out to escrow, Borrowers sign that day, funds wire transferred for balance
Day Ten: Funding and recording
Fifteen Day Turn time is met assuming there are weekends that delay recording/ wire/ funding that must be done on a work day
What if you know there are no current comparables for subject property? If value is an issue, Client should already have been aware that comparables have not yet closed and they may choose to put additional down payment. We will review appraisal for any errors or omissions. Conventional Loan 75% loan to value first 18% down minimum 10% second; allows for some wiggle room if appraisal comes in low.
I will be sharing these tools at the OCAR Orange County Association of Realtors meeting tomorrow morning, Thursday at Ball Park Pizza in Laguna Niguel at 8:00 AM I am also supplying breakfast.
Estimated turn time for all new purchase loans submitted to Underwriting today:
2 business days (16 business hours)
Estimated turn time for new refinance loans submitted to Underwriting today:
2 business days
Estimated turn time for new PTD and PTF-UW conditions submitted to Underwriting today: 8.00 business hours
Estimated turn time for loans that received clear to close underwriting status today:
8 business hours
Estimated turn time for new doc requests submitted to closing today:
8.00 business hours
Estimated turn time: 4-6 business hours
Table/Wet Funding Loans: Closing doc request must be submitted and accepted 16 business hours before requested fund date. All PTF-UW conditions must be uploaded in Nile by 9:00 AM MT the day of funding or funding could roll to the next business day. PTF-HUD conditions must be cleared by 1 PM MT or funding cannot be guaranteed based on warehouse cutoff times.
Non-Table/Dry Funding Loans: Closing package must be received the day before requested fund date. All PTF-UW conditions must be uploaded in by 9:00 AM MT the day of funding or funding could roll to the next business day. All other PTF conditions must be received by 11:30 AM MT the day of funding or funding could roll to the next business day.