Realty411 Magazine The Best of Realty411 - Learn from Our Past Issues | Page 40
Why ask this?
Because Fannie Mae and
Freddie Mac are the two largest
purchasers of mortgages and they
set the guidelines for the loans that
you have to qualify for. If your
lender’s company doesn’t sell
directly to Fannie or Freddie that
means they have to sell their loans
to a correspondent lender who
then sells loans to Fannie or
Freddie.
If they sell their loans to a
correspondent lender you not only
have to qualify for Fannie or Freddie
guidelines you also have to qualify
for any additional guidelines or
restrictions that the correspondent
lender sets.
These extra guidelines are
referred to as overlays. If you have
ever heard that you can only have
up to four financed properties it is
because of an overlay.
Tips from the Pros pg. 38
COMMUNICATION – This
may seem basic, but you should be
working with someone that will
return your calls and your emails.
Regardless of how you came across
someone, they should be getting
back to you within 24 hours. No
matter how much experience, how
long they have been in the mortgage
field, how highly recommended
they come, you are their potential
client, and you should be treated
like gold.
AVAILABILITY – Going along
with communication, are they
available to talk with you on the
phone or do they only communicate
via email? If your lender is on
vacation or out of the office, do
they have an assistant or partner
that you can talk with? Ask them if
they work alone or if they have a
partner or a team. Don’t discount
them if they do work alone, but if
you have an urgent question how
would they be able to handle it if
they are out of the office?
COMPANY AFFILIATED
WITH Find out who your
mortgage officer works for or with.
Do they broker their loans, or do
they work for a direct lender? Ask
them questions about their company,
how long has the company been in
business? What are their financial
strengths? Will your loan be
serviced by the same company or
will it be sold off right away? If
you don’t ask any other questions
about the company, ask this: Does
your company sell directly to
Fannie Mae, Freddie Mac, or both?
40
LOCAL UNDERWRITING –
Does your mortgage professional
know their underwriters? How
many do they work with? Ask
them if your loan will be sent to a
giant pool to stand in line or if
your loan will be underwritten by
someone they know. Why does
this matter?
Aren’t guidelines, guidelines?
Yes, but the underwriters that
review your loan are human and
just as your loan officer has
experience, it is important that the
underwriter also has experience in
reviewing investment property
loans.
Does your lender have a good
relationship with their underwriter?
Ask your lender what their under
writing turn times are like. Are
loans underwritten in 12 days or
12 weeks? >