In this ever changing lending environment, realtors will need to keep a few key things in mind:
Pre-approvals
Be sure your buyers update their pre-approval letters every 2 weeks. Loan program changes and rising rates may negatively affect how much they can buy.
Property
As lenders face loses to foreclosures, they are focusing more on the condition of the property, as well as, the comparable sales to support value.
Government loans such as VA and FHA have strict guidelines for wells, septic and overall condition of the home. No deferred maintenance such as peeling paint, missing railings, etc.
Foreclosed properties will need to have the utilities on, and all appliances.
Appraisal underwriters are taking more time reviewing appraisals. A few months ago, a report passed through underwriting in 2 days, it can now take 2 weeks!
Stay Positive
Remind yourself and your clients that we are not in a crisis. Lenders are just taking more time to make sure people can afford the home they are purchasing.
Allow at least 45 days for a loan to close to minimize stress.
