One of the foremost reasons why several Real Estate Agents find it difficult to communicate with a lender is because they do not apply the 3Cs method of effective communication. Be Clear, Be Concise, Be Courteous. Through feedback from Real Estate Agents, Loan Modification and Short Sale Negotiators, the list below has been identified as the common mistakes that should be avoided in dealing with lenders.

1) Forgetting your query – Be prepared once you call the lender. Write your questions down on a notepad to confirm you don’t waste your time or the lender’s time and to avoid having to call them back. Hold times can be long and getting through to a negotiator on the phone isn’t perpetually easy.

2) Asking unclear questions – Lenders don’t have time to work out what it’s you’re asking. Be clear with your query and do not attempt to beat around the bush for information you recognize they’ll not give to you. Additionally, don’t raise obvious questions in which you already know the question.

3) Not being concise with your query – There’s no need for you to embellish or offer a long winded explanation to the lender. Be straight to the point and you may notice the lender can respond in the identical manner. The more efficient you are, the better the communication will be with the lender.

4) Not having the ability to answer a question from the lender – Be positive you know the small print of your transaction in and out. Getting a hold of the lender is not the best thing, therefore when you are doing get through, be sure you’re well prepared with any information they may need.

5) Providing false information – When collecting documentation for the short sale submission, double check to make sure you verify all information. Any mistakes will simply delay the approval process.

6) Being Rude – Throughout these stressful times, it is very vital to keep your cool. Being rude and demanding things to happen can not make things move faster. Lenders will be more accommodating to your needs if you’re courteous to them.

7) Showing frustration and impatience – Your buyer is pressuring you to hurry up and get an approval. Don’t allow them to push you to show your impatience when calling for status updates from the lender. If you set the proper expectations up front, your buyer ought to know that the process is in play and it can take slowly to get an approval. Give your patrons frequent updates to help them stay calm.
Difficult to reach either by phone or email – Lenders don’t have a ton of time to keep trying and get hold of you. Be responsive to every call or email they send to you. If they see you’re on prime of the file, they can respond in the same manner as well

9) Telling them how to do their job – Never ever tell the lender what they should be doing or why they must settle for your offer. This solely offends them and will create negotiations tougher. If you think one thing ought to be done in a certain way, explain it as a suggestion which it’d improve the entire transaction, aiding to a successful solution.

10) Arguing with the lender – Don’t argue with the lender as to why they have to take an offer or that the information on their systems are incorrect. Typically you may call and get different status updates or info that may not be communicated properly. Keep your cool and help them to understand the problem.

Another great article by Osgoode Real Estate

Buying a house or a property on a mortgage was considered a headache in the earlier days as a result of of the insurmountable pressure it puts on the borrower to pay the interest and principal in the stipulated time. However things have changed a lot these days with the arrival of the concept of refinancing where individuals will modify their mortgages. Before you jump into any agreement of refinancing there are many things that you’ll have to understand concerning this concept. To tell you more, I’ve given a specific and a transparent idea on refinancing.

THE CONCEPT:

The concept behind refinancing is to help the debtors in the better way. And how will this idea help them? It’s very simple. If you have an existing mortgage and if you’re finding it troublesome to pay the dues and also the interests on time, then you’ll very well select refinancing. Whenever you refinance your existing mortgage, a replacement mortgage will be signed with newer interest rates and mortgage period. Therefore, if you prefer paying lower monthly installments than the present installment you are paying; then refinancing is your best choice (after all, the period of mortgage can be increased significantly than the older mortgage).

ADVANTAGES:

The concept of refinancing not solely applies to reducing your monthly installments, but also to extend the installments, i.e. if your monetary status is quite good at present and prefers to shut the mortgage as early as possible; then this versatile refinancing concept will be utilized. The biggest advantage with refinancing is paying lower interest rates. Yes, you’d have signed a mortgage at a particular interest rate and paying the same amount throughout. But you pay the same amounts even when the interest rates go down in the market. Thus, this concept helps all those to redeem all their precious money according to the changing market. Refinancing can be very well done if the interest rates are under your existing mortgage.

POINTS:

Another necessary thing that each individual must be aware regarding refinancing is the term known as “points”. Points are nothing but 1% of the complete mortgage of the property. Therefore, whenever you go for refinancing the lender would demand you 3 points i.e. 3 percent of the mortgage fee as an upfront for signing the new mortgage. This upfront fee isn’t in the slightest degree of difficulty because some lenders do give bound flexibility to the debtors by not demanding the upfront at all.

TYPES:

There are 2 types of refinancing i.e. the No-Closing Cost refinancing and Cash-Out refinancing. The No-Closing Cost refinancing is the conventional and the foremost widely followed concept where the debtors are asked to give upfront for his or her new agreement. The Cash-out refinancing is a very helpful choice for all those people who don’t have issues with the installments. In this sort, the lender can pay the borrower an increased sum as a loan i.e. if the mortgage of that specific property is $3000 then the lender will pay you $4000. The extra $1000 can be utilized according to your wish.

Another great article by Aurora real Estate

In home purchase, you do not solely need to understand what kind of mortgage you are getting, but conjointly the prices associated with it. All these prices should be paid when closing your mortgage.

Before you proceed on your mortgage plan, it’s necessary that you have got a radical understanding of the terms related to the mortgage like points, rates and fees.

Purchase Points

No single issue confuses a borrower more than the points. They are conjointly referred to as “buy-down” or “discount points”, an up-front fee to the lender during closing to lower your rate of interest over the life of your loan. Every point is one percent of the number of loan. On a $200,000 loan, one point would be equal to $2,000 and 1.5 points is $3,000. The more points you purchase, the lower your interest rate, but you may also need additional cash during closing.

How do you opt whether to shop for points and if so, how many? The choice ought to base on the length of time you plan to stay in your home and how much you can afford to pay each month towards your mortgage. It’d be a sensible plan to shop for points if you are planning to live in your home for the following five years. The longer you stay, the more you’ll be able to save on the interest.

Interest Rate

The interest rate is the amount that the mortgage lender will charge you for using their money to buy a property. It determines your monthly payment dues. Generally, the higher the interest, the higher you pay your monthly payment. It is necessary to notice that mortgage rates of interest constantly shifts, some daily and some even by the hour.

When a lender will quote you a specific rate, it will not essentially mean that you just get that rate when closing your loan, unless you lock-in that rate with them. Locking in an interest rate guarantees you get your loan with a particular interest rate. Lenders allow you to lock in interest for fifteen, forty-five of sixty-days. Think about that this feature is more costly because of the danger it imposes on the side of the mortgage lender.

Fees

In getting a mortgage, there are fees constantly related to it. The fees cover the processing and underwriting of your loan. The fees embrace charges for guaranteeing the house title is clear and free, land survey fee and home appraisal, which offers an estimated value of the home.

Choosing what mortgage to choose could rely on what each does since lenders may charge different amounts. Some charge less closing fees to attract borrowers but might conjointly charge you a higher interest. However, it all depends on what you need. You may or might not afford to pay more during closing and is willing to pay additional over the long term.

Before closing, do your analysis, make certain there are no any hidden fees, and ask your mortgage lender many questions thus you may understand the costs involved in your mortgage. Bear in mind that acquiring a home is a pricey investment that needs all of your available resources like cash, time and energy. Therefore, it is only right that you simply comprehend points, interest and costs connected to your home equity loan if you want to possess a productive, hassle-free and long-term endeavor in the real estate world.

Another great article by Kanata Real Estate