Why does my Realtor refer and encourage me so adamantly to use the Mark A Baker team?
The answer is simple. The Realtor you have chosen has likely had more than one bad experience with a Lender. The Realtor’s referral is a direct reflection of their business that reflects the future of not only your business, but your future referrals. They must be able to refer someone that can give the same service or better than they do, be able to close the deal so they get paid, and know that at the end of the day the client is going to have had the best experience possible. Referral business is really the life blood of your Real Estate Agent’s business & most successful Real Estate Agents do not like to leave things to chance.
Additionally, many Real Estate companies and Builders have a financial agreement with a Loan Originator or a Mortgage company where they are paid a fee for the referral of the mortgage loan. In other words, they refer and adamantly encourage, or give incentives to the client to work with specific Lender so they can get paid. We don’t participate in these agreements. Our agreement with our Referral partners is simple… Refer us your clients and we will do all we can to make sure your client has the best mortgage experience we can offer. If we do this the Realtor will be able to close the transaction so they can get paid their due commission. It is really that simple.
Why can some Lender’s not lend on Investor flipped properties but you can?
Loaning against “Investor flipped properties” is an added layer of risk for a Mortgage company. The Federal Housing Administration (FHA) feels so strongly about this risk they have a specific guideline prohibiting these loan transactions making them ineligible for FHA insurance. (There is currently a temporary waiver for FHA loans to allow these loans because of the state of the national housing market) With the amount of fraudulent mortgage loan/real estate transactions at an all-time high in the United States, flipped transactions invite the risk of fraud more than any other variable in the Real Estate business today. This risk is so high that most of the nation’s largest Lenders have a policy that they will not do loans on any property that was sold by a Seller within 90 days of the Seller acquiring the property. That being said, our team has sought out relationships with Lender’s that will lend on Flipped Properties for all types of mortgage loans because this is such a large part of our local market activity. Additionally you will find our rates and fees are very competitive compared to other Lenders able to lend on these transactions.
How can you do a loan that another Lender cannot?
We have many products and less Investor overlays that other Lenders do not have. Things such as higher grade of Mortgage Insurance, HomePath loan products, FHA loans that do not require appliances, etc. One of the biggest challenges in the loan business today is helping clients “see around the corner” so they are not surprised with loan conditions or turned down for a loan when they thought there was no problem. With the number of loan transactions that we have closed, we have seen most of the possible hiccups that can happen. While we still continue to learn every day with additional challenges, the sheer number of loan scenarios we have seen allows us to say we can or we cannot do a loan based on history & facts, not theory.