Have you ever wondered why offers that are using all cash are viewed as a better choice than ones that are taking out loans? Doesn't the seller get their "cash" in the end once the house is bought whether it comes from under someone's mattress or a bank? The answer is yes. Once the deal is done, the seller will get their proceeds whether you got a loan or paid all cash. But an all-cash offer is better for one Big reason...you don't need a loan to buy the house. Okay...well that is an obvious statement, but so what? Right? No...loans are very hard to get these days and just because a loan officer pre-qualifies you to get one, doesn't mean that you will. And it happens All the time! I can't tell you how many people I have seen go to some bank or online loan place and get qualified only to be knee-deep into buying a house then get denied. Or better yet, all the sudden the loan people want 'this', 'that', and 'the other' from the buyer to get them the loan and it puts a tremendous stress on the sale process which can either delay the sale, cost the buyer money because now they have to pay a per-diem to the seller because they aren't closing on time, or even worse, loose the buyer's deposit. And some of the things I've heard from loan officers that they need in order to proceed with the loan can be things like a receipt showing where the money for $400 cash deposit into your bank two month ago came from, or asking the buyer or seller to fix the cosmetic crack in the ceiling before proceeding and prove it is fixed by having someone come out and check it, or removing a 6'x6' wooden platformed deck in the back yard and getting city permits to do so, before the end of the sale. Or then they can always simply say you don't make enough money, even though everything seemed fine a month ago when you got pre-qualified. The list goes on with the number of things that can happen with a loan in the middle of a deal. So not having to bother with a loan can be a much better choice. But if your agent conveys to the selling agent that the loan officer being used is a good/trusted source, or the selling agent happens to know them (and we use some of the same guys around town because we know they are good) then your offer will stand a better chance if you are up against an all-cash offer. And even if you aren't competing with all-cash, get a good loan officer just for your own good.
So, the lesson here for all the buyers out there looking to buy is, get a loan officer that is recommended to you or is connected somehow with your agent. I have a few that I always recommend to my clients and I know people have to be thinking "What do I get from recommending these loan officers?" I'm sure some people think we get money or something from it, right? Well, I don't think the loan officers I've recommended for years have even bought me so much as a cup of coffee. But what they do for me is get the loan done. And if things get harry in the middle of a transaction, I can just pick up the phone and talk to them and get answers. This isn't the case with some of the random loan officers some of my clients are using. I've called some of these guys for days with no return phone call or email which makes me nuts because these are my clients and their money is on the line and its my job to try to make sure things don't get scary. But with a loan officer I know who I've seen get the job done time and time again, not only can I easily reach them for answers, I can also hold their feet to the fire to get things done being that I bring them business. So, find a good loan officer. Call a friend, ask your agent, but don't just find a place online or walk into a bank and grab one. It is really in your best interest to have someone who truly cares about your best interest working for you.
No comments:
Post a Comment