Be prepared for what might happen…

We all know that there was a push to get houses under contract by April 30th and settled by June 30th so guess what could happen?  Settlements may get delayed as stress has been put on the system to get these transactions closing on time.  Is your lender on top of your buyer’s loan application?  Have your purchaser’s submitted all of their paperwork to the lender?  Is your appraisal completed?  Has the appraisal been underwritten?  Have you received your commitment yet?  Today is the time to push everyone in the process to move forward and get your sale ready for closing early – be the squeaky wheel. 

Why do you ask are you urged to take action today?  Well, if your settlement is delayed, your buyer may not receive their tax credit they are entitled to receive.  If the settlement gets delayed, who is responsible for making up the difference?  If you are proactive, on top of your transactions and put pressure on the lender to perform…it won’t be you!  If you wait until the last minute to check on your loan and where your loan is in process…the buyers may look at you for a contribution to their lost opportunity.  Begin to have questions today to discuss the potential of the loan not closing and what your lender is going to do to make it right if it doesn’t happen as scheduled.  If you lay it on the line early, you will get the results your clients are looking to receive – an on time settlement!

Potential solutions could be reducing your buyer’s principal amount.  Buying down the interest rate is another possibility.  Paying closing costs for the buyer is another possibility.  When the responsibility is put on the lender early to perform or pay – they will perform more often than not. 

On the flip side of the transaction – a buyer may decide not to close if they don’t receive the credit and potentially walk away from the transaction.  As a listing agent, track your closings closely – you don’t want to get caught off guard!

Be the professional, be on top of the process and avoid problems that may arise and you will be the trusted advisor that gets referrals for taking care of your client.  Get it?  Got it?  Good!

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