Real Estate: Lending Logistics

Written by Beverly Corsmeier

Sunday, 06 January 2013 15:46

Real Estate: Lending Logistics
Our real estate columnist reflects on the changes to the industry - lending in particular - and what you need to know to make your buying process run smoothly in the future.

Wow, can you believe it's already 2013? Do you remember where you were fall of 2007 when the banking industry started crashing? I had buyers that had to switch lenders the day of closing because the bank they had chosen went belly up. Over the past five years, we've gone from loosey goosey lending to extremely tight, double cross the T’s and double dot the I’s. Have you tried to re-finance? Did they ask for a blood sample? I’m just kidding, but it really is amazing how much documentation must now be supplied to the lender in order to get a loan. Good? Bad? I’m not sure.

In the past, I never gave a second thought to who the lender was for my clients. Clients just picked someone and the process went pretty smoothly. Not now. After closing 30-40 transactions a year for the past three years, I’ve come to be very opinionated due to experience. Big banks or little local ones, all seem to be in a sea of paper shuffling, out of state underwriting departments and 90% of them haven’t met the contract closing date. I have only a few that I trust to get the job done, do it well, and provide great customer service to my clients.

On the subject of banks, are you familiar with the pre-approval process? Not that anyone would ever lie about their income or expenses……(sigh) some pre-approvals are just verbal provisions to specific questions. If all the answers fit the matrix then the person is given a pre-approval. Problem is when the purchase contract is turned in and the bank now asks for the actual documentation and the numbers don’t add up, the agent and seller’s time has been wasted and the buyer’s dreams are ended. All the more important for the agent to know the quality of the pre-approval process of the chosen lender.

Real estate agents aren’t bankers, but we need to understand the process and know the ins and outs of the business to best service our clients – both buyers and sellers.

Beverly Corsmeier - bCorsmeier
	Beverly Corsmeier is a real estate agent for Coldwell Banker West Shell Real Estate, and the Real Estate Columnist for Cincy Chic. Contact her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit her website, www.LiveandPlayCincinnati.com. Read More >>

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