The huge rate increases do not threaten JVM’s business b/c we have always been about 85% purchases; we truly are purchase experts.
With rates up so much though, the “refi guys” are going to be clamoring into the market offering stellar service and everything else to Realtors in an effort to garner business.
So, here are some really important tips for refi guys to ensure their purchases go smoothly.
1. Order all appraisals as a rush as soon as the contract is ratified. This allows buyers to deal with appraisal concerns up front. It also requires lenders to risk eating the appraisal fee if the deal does not close. Almost all loan officers wait to order the appraisal only after they get all the closing fees and disclose the loan terms, so they can charge the borrower up front.
JVM pays for appraisals up front with our own money, and we only charge the borrower if the transaction closes. We also always eat the $200 rush fee.
2. Watch for any condition issues referenced in the contract. They can be buried anywhere. If they are missed, underwriters will require repairs prior to close.
3. Watch for references to any reports in the contract. Underwriters will request copies of all referenced reports that often have deal-killing disclosures.
4. Review the entire contract, esp. page 10, for references to counter offers and addenda. This ensures that the loan is disclosed properly and that the appraiser gets the correct terms. We often do not get the entire contract sent to us.
5. Have a highly trained and skilled appraisal manager to make sure appraisals come back in less than 5 days, to make sure appraisals are reviewed for issues, and to know how to deal with issues.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646