WHAT TO KNOW ABOUT WORKING WITH LENDERS
Tim Coen — Broker and Owner of Priority Home Realty Group
Many would-be home buyers are nervous about talking with a lender.
They know that their home-buying dreams depend largely on how much the lender tells them they can borrow, so a lot is riding on this conversation. But the process feels mysterious and therefore scary.
You don't need to be afraid!
I'll guide you through each step of your buying journey, including this one!
Here are a few basic tips that will help set your mind at ease...
LEARN THE LINGO
Like specialists in every industry, lenders use terms and acronyms that can feel confusing or even sound intimidating if they are unfamiliar to you.
I'm not a lender, but I speak just enough of their language to help interpret for you, so please ask me whenever you're not sure what your lender is saying.
For now, especially if this is new to you, you can check out LEARN THE LENDER LINGO for a quick explanation of some of the terms you may hear.
“Tim helped me buy my first house. It was an absolute pleasure to work with him. Tim is an excellent realtor: extremely knowledgable, honest and helpful. Tim made the process truly painless. I fully intend to use his services in the future.”
2. FIND A LENDER YOU TRUST AND FEEL COMFORTABLE WITH
The lender you choose is a core part of your home buying team. It's important that you feel comfortable with them and trust them to do a great job.
I'll recommend great lenders who have taken care of lots of my friends, so I trust them to take good care of you.
You can talk to as many lenders as you need to feel confident in your choice
Skill as isn't the only important factor in choosing a lender who’s a great fit for you. Choose someone whose personality and communication style make you feel comfortable.
“Tim helped my husband and me with the purchase of our first home. We were so thankful for his expertise about the house buying process and his willingness to help us out in any way. He was always prompt in communication and helped negotiate with our seller. He made the house buying process as easy as it could have been!”
3. TELL YOUR LENDER EVERYTHING
Many buyers feel they should tell their lender only the things they think will help them get approved, and they fear that if their lender finds out anything negative it will hurt their chances of getting a loan. This is not true!
Think of your lender as your loan advocate.
They won't be approving or disapproving your loan—the underwriter will do that. Your lender’s job is to get you approved!
They know what the underwriter is looking for,
They understand your situation,
They help you fix or change anything that could make it hard for the underwriter to approve you, and
They package up your loan application to make it easy for the underwriter to say YES!
The more you tell your lender (both the good and the bad), the better they can help you!
They can protect you best if you make sure they are never surprised by something you hadn't told them.
4. ASK YOUR LENDER EVERYTHING
The more you know and understand about your loan options, the more comfortable you will feel, and the more control you'll have over your home-buying adventure. So don't be shy about asking your lender questions.
To choose which lender you want to use, it may be helpful to ask...
What are the advantages of working with them instead of other lenders?
Which loan programs & down payment assistance programs do you qualify for?
Which kind of loan makes the most sense for you? Why?
Is there anything you can, or should, do to improve your buying power before you choose your home?
How do they expect rates to change in the near future, and how would that affect you?
Once you’ve chosen your lender, you definitely want to find out...
If you already own a house, do you need to sell it before you can buy, or could you qualify to buy before selling it?
How much should you expect to pay for loan closing costs?
Could you include your realtor fees in your loan?
With your available down payment, what's the maximum price you could qualify to buy?
Since may not want the payments your maximum price purchase would involve, what price range of home fits your budget comfortably?
How much does your payment change for each $1000 more or less you choose to spend?
"Tim is a great realtor who makes you feel at ease through the buying process. He always has your best interests at heart and is a consummate professional. Tim knows everything about the real estate business and has a never ending list of lenders and contacts to ease the client through the buying process. Contact him, as soon as you talk to him you'll know he's your guy!”
5. COOPERATE WITH YOUR LENDER
Your ability to successfully purchase a home depends largely on your lender. If they don't get your loan fully approved and show up with the money at your closing, you won't get your house. And getting a loan all the way closed is a tricky process that involves lots of details, dedication, and skill.
Your lender is going to need information, signatures, and updated documents from you all the way through your loan process. This is normal.
Buyers often wonder why the lender is asking for so much information. They worry that the lender is looking for a reason to deny the loan. But actually the exact opposite is true—they are trying to protect you and make sure you’re ready to answer any potential question from an underwriter.
I won't bore you with all the history of how we got here, but there is intense pressure on underwriters to make sure they have an overabundance of information and documentation in your file before they approve your loan and release the money. They have to be prepared for the most enthusiastic auditor.
Whenever your lender asks you for something, cooperate quickly and cheerfully. Don't waste time and energy worrying or arguing about why you don't think they should need it. Just bring them what they need!
Don’t make any big changes without consulting with your lender first.
Life is going to be moving fast for you, with a lot of exciting changes and opportunities, but it is really important for you to keep your lender updated about everything that is happening, and to avoid making any big changes without checking with them first.
Don't make any big purchases, add to your credit card balances, or apply for any new credit without checking with your lender first.
Don't make any job changes without talking to your lender first. Even if the new opportunity pays more or has great perks, changing jobs may keep you from getting the loan right now.
Make sure your lender is never surprised!
“We have bought several houses in our time and Tim was the best we have ever used. He has also helped friends/family members in getting houses in the local areas. Great resource!!”
LET’S GET STARTED TODAY!
When you LET ME SHOW YOU HOW I HELP YOU HAVE A GREAT BUYING EXPERIENCE, I’ll connect you with great lenders!
“The best of the best!! He’s more than just a realtor, he’s your best friend and he loves what he does and it shows. Without Tim on our side, we would have lost our perfect house. He is just a breath of fresh air and when dealing with the stress of looking and buying a home, you need him on your side. I would recommend Tim to anyone that’s looking for an honest, down to earth, and reliable realtor that’s always looking out for your best interests. Thanks for everything!!”
TIM COEN — Honoring God by Serving You
Understanding YOUR goals
You already have access to lots of information, but do you have someone who deeply understands what’s most important to you?
I ask insightful questions, listen carefully to help you clarify your priorities, and deeply care about you. I prioritize what you value most!
Meeting YOUR needs
You have something important you want to accomplish, but do you know the safest and most effective way to get there?
I have deep knowledge, experience, and tools from 40+ years of serving people and 20+ years in real estate in the Colorado Springs / Pikes Peak area. I guide you to success!
Earning YOUR trust
You have a compelling interest in how this goes, but are you confident and comfortable that someone is putting your interests first?
I am completely committed to treating you the way I would want to be treated. I succeed only when YOU feel valued and protected!
Valuing YOUR lasting friendship
Your story will be filled with challenges and victories long after your successful closing, so are you open to sharing about it with me?
I will always see you as a person I care about, not as a past or potential paycheck. I stay available to encourage and help you any way I can!
Helping those YOU introduce to me
You want the people you care about to feel safe and protected too, so do you have a trusted friend you can connect them with?
I want you to be so happy with how I have helped you that you’re eager to share your experience with them. I honor God—and honor you—by serving them well too!