She came back to the lender three months later to finish going through the loan origination process. However, she was shocked to find that the interest rate the lender offered had increased significantly since her last meeting. The lender had to politely but firmly explain to her that without a rate lock, there was nothing she could do. The woman ended up signing for the loan under the new, higher interest rate. All because she couldn’t spend the time to lock in that rate when she had the chance. And really, it’s not that woman’s fault she missed out on a better interest rate. These loan processing steps are complex, with many variations on the moving parts. That’s why having an excellent lender’s loan officer is paramount to a buyer’s understanding and satisfaction with the process. The loan officer must make time to explain the documents in detail and be of great service to the buyer. The loan officer has the obligation of knowing in detail and explaining the lender’s loan programs and requirements. That’s why, as a real estate agent, you don’t want to hand off your clients to just any old loan officer. Find the ones who will treat your client well and walk them carefully through the steps. It could mean the difference between your client saving thousands of dollars...or losing thousands of dollars.
PROCESSING: THE AP G: THE APPRAISAL
One of the most crucial steps in the lending process is the lender’s appraisal of the property. This is where the lender will determine whether or not the house is worth the amount of money they are going to lend to the borrower.
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