Realistic and open communication with my clients is my number one priority in the financing process. Regardless of whether I’m helping with a purchase or refinance I establish the means of communication via email and/or my direct line. For those who are first time home buyers there are many “unknowns” when going through the process, but nonetheless there will be some form of expectations set by either friends, family or the Realtor(s). For those who have owned and are buying again or those who are refinancing there may be some expectations from a previous financing experience. In the ever-changing real estate and mortgage industry of 2009 this communication must be realistic and constant.
The variables in a real estate transaction are numerous and have only become more prevalent in recent years. When a loan application is taken we may know the guidelines for the given loan program, however, something may change through the process. Although most major changes to lending guidelines have already been implemented, there are periodically new guidelines implemented that may change the course of a transaction.
Appraisals ordered through appraisal management companies and the delays associated with the new Home Value Code of Conduct (HVCC) are becoming increasingly painful for clients and closing dates. Program changes and appraisal orders are just a couple of variables that may affect a purchase or refinance.
As a part of the loan application process I always communicate with my client (and Realtors for purchases) the potential for an unforeseen obstacle that we may need to work together to overcome. Communicating current and realistic underwriting and appraisal time frames from time of application is equally as important. The ebbs and flows of the real estate business directly correlate to the current time frames. Setting unrealistic time frames from the beginning is a sure bet to have disappointed clients and Realtors.
All this to say, if you are hearing that your real estate transaction is going to be quick and will absolutely not have any hangups, just be cautious. None of the things mentioned in this post may happen during your purchase or refinance, but knowing the current conditions of our industry from the beginning will make any unwanted obstacles a little easier to understand if one comes along.