At Aslan we understand that buy a home over the market value can be dangerous. Below is a list of tips to help keep you in mind when signing a mortgage in this type of real estate environment.
If the client has 10% down. Offer over and reduce technical down payment. An example could have 20% to put down but really structure so 15% is to cover appraisal gap and they are really going to go up to 95%
Have candid conversations with your buyers - look, you’re willing to pay $100,000 over the list value, you may need to be willing to have MI.
Fast closings - offer to close in two weeks. Keep your documents up to date with the client. Ex. Ask them to upload every pay stub they get and every bank statement they receive. Ex. Rush appraisal, it may cost us an additional $250 to rush an appraisal. Are you willing to pay $250 more for the house? Great, then paying $250 extra on the appraisal isn’t a big deal since it’s going into the house.
Do not misrepresent your client's financing - for example, if they are using FHA do not write conventional unless they qualify conventionally.
Call the listing agent and Schmooze - still works. Affirm that your clients are excellent and that you are going to do an excellent job. Verify that you have all the documents and they are fully verified. Sometimes it makes you stick! (sell the buyer, not how good you are)
Run AUS and see if you can get a PIW before you submit pre-approval
The buyer releases EM to the seller, adds verbiage to the contract. Stronger than EM going hard because that can still be battled in court.
Give up loan termination-This should only happen if the lender and buyer are strong AND the buyer is fully aware of what it means. ROCK SOLID approval and waive Loan Termination. Make sure buyers know they have no protection for job loss, death, accident, etc.
Help your clients expand their thinking about location and property.
Get a TBD? Then you have credit approval and just need to plug in a property. Go all the way through UW.
Who do we know will accept TBD? UWM for Partner Points, Flagstar, HomePoint.
Partner with your agent to cash - WHAT?! And you and the agent become the seller.