There are two huge reasons why agents should alert their lenders every time they make offers.
Reason #1: Insurance Costs!
Hazard insurance costs have gone exponentially higher in some areas, with California and Florida getting hit the hardest.
We are seeing insurance costs more than quadruple in some areas – especially with homes in CA near open space where the fire risks are high.
In any case, we will get insurance quotes on behalf of borrowers for the home they’re making an offer on for two reasons: (1) to ensure there is no insurance “sticker shock” for borrowers expecting a $150 per month insurance payment when the payment might actually be $650 per month; and (2) to make sure borrowers still qualify for the home if insurance costs are in fact substantially higher than expected.
As an aside, I blogged about America’s insurance woes here: Hurricanes, Tornadoes, Fires & Sky-High Hazard Insurance Costs! Beware! SOLUTIONS!
Reason #2: So We Can Call Listing Agents!
In the last week alone, we have cajoled four listing agents into accepting our offers over others via phone calls.
In three of the cases, it was our 12-day close that pushed us over the top, and in the other, we merely had to show the enormous quantity of assets our borrower had (making qualifying and the appraisal a moot point).
But, with all of our phone calls, we tout the strength and thoroughness of our pre-approvals, our ability to close quickly if necessary, and any particular strengths our borrowers might have.
