Building a deeper business together
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.
First:
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.
Second:
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.
Underwriting:
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
Pre-Close Audit:
Estimated turn time for loans that
received clear to close underwriting status today:
8 business hours
Closing:
Estimated turn time for new doc
requests submitted to closing today:
8.00 business hours
HUD-1 Pre-approval:
Estimated turn time: 4-6 business hours
Funding:
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.
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Other tools and strategies
to get your offer accepted:
All cash buyers can
refinance without waiting six months, terms and loan to value depending on
product, property, FICO, occupancy type, loan amount… terms and conditions
vary
Caroline Gerardo
23041 SW Birch
Newport Beach, California 92660
Mortgage Banker
NMLS 324982
(949)784-9699
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