An interesting Occurance...

Something you may find of interest occured to Jessie the other day. In case you are not familiar with Jessie, he is a member of my team, he specializes in residential, commercial and industrial investments, my webmaster and my husband :)

He had been working with a couple who were interested in purchasing a new home. They were a military family, and wanted to go through VA (Veterins Administration) to purchase. Jessie introduced them to several local lending institutions whom we have worked with in the past, including Century 21 Mortgage who provided Jessie with a pre-approval letter. All the lenders Jessie introduced the couple to were willing to assist them with financing, but as it turned out they chose an out-of-state lender from the internet instead.

Jessie found a home that met their criteria perfectly, and they seemed to love it! They made an offer, Jessie wrote the contract and submitted it to the selling agent and it was accepted. Jessie then advised them to get a home inspection, home owners insurance, and get started with the financing right away.

As the days passed, the couple went from one lender to the next, never being happy with estimates they were given or the service they said they were given. Finally they chose one lender. The lender ordered the appraisal and the couple paid for the appraisal POC (Paid Outside Closing).

During the next few weeks, Jessie had been in contact with all concerned parties to make sure everything went well and there was nothing anyone needed for closing. The day before closing the event happened...

The lender contacted the title company and stopped the closing! The title company called Jessie but he hadn't a clue as to why it would be stopped. He had spoken with the lender the previous day and all was in order.

Jessie tried to contact the lender all day and finally was able to get through. It seems the couples VA status was turned down by VA! That's odd in itself, so he asked for more information. It seems, the husband had changed jobs 2 days before closing and therefore was considered 'in training' which is not allowed for VA funding.

While speaking with the couple, they said 'no one told us'. This is interesting because in the very beginning Jessie consulted them about NOT making any changes to their financial status during this time.

So, the deal fell apart, and no one was happy! The seller wants to keep the Earnest Money Deposit, the buyer's would like it back. The buyers have had the worst possible experience with something that should have been the happiest experience of their lives!

Interesting huh? What would you do in this situation? Who would you side with?

A side note here:

The out-of-state lender was at no time willing to work directly with Jessie. This posed a problem as the information was always third hand. He had to get the couple to speak with the lender and they had to report back to him on what was said. This is not how things should be done. The couple should only have to give the lender permission to discuss their loan with him to resolve this problem.

So a few words of suggestion:
When working with a lender, it is best to use a local lender or one you have used in the past. Local lenders know the market place and how to get things done on time. If you choose a lender you work with, all the better as they are familiar with your financial stability.

Whenever possible, always include your Real Estate Agent as the primary contact for dealing with lenders and title companies. That's what we're here for! We're here to make your real estate experience as stress free as possbile and perhaps one of the happiest experiences of your life.

Step 5: Making the Deal

Well we've gone through the preliminaries now it's time to make the deal.

A buyer has made an offer - now it is time to negotiate. Rely on me, your real estate professional to guide you through this process. I will help you arrive at an acceptable price, terms and conditions. Once you have accepted an offer, help keep the deal together by meeting deadlines and criteria, including home inspections, appropriate buyer visits, scheduled deposits and other steps.

In fact, during this period there may be a renegotiation of the accepted offer price depending on the outcomes of these visits. As the closing nears, you may also need to perform repairs or do additional work to the house as agreed upon in your contract. In addition, you will need to have the house "broom clean" prior to the closing so that the buyer can complete a final walk through.

When you finally arrive at the closing table, come prepared with the appropriate certificates and approvals as required by your town, county and state. Ask the appropriate agency or get a list of what you need from me, your REALTOR®. Once the money has exchanged hands and all the papers signed it's time to hand over the keys and concentrate on your next big project - getting YOUR new home in order.

Step 4: Protecting Yourself

Ok, so we've talked about getting your home ready to show with tips, and protecting you from costly repairs. We've also talked about setting the price correctly for a quick sale.

Let's take a minute to speak about safety:

In some cases, a home sale can also be an invitation for danger.

Here are some things as your Century 21 Professional, I will do to make the process safer:

• I will always qualify the potential >buyer before showing your home
• I will always get pre-approval letters
• I will always verify potential buyers identification
• I will always give you as much lead time as possible before showing your home


Here are some things you can do to make the process safer:

• Lock up and hide collectibles and valuables
• Remember "For Sale" signs bring in buyers. Do not allow your children to open doors to strangers.
• If you have pets, make sure they are controlled
• Remove any dangerous items such as lawn tools in the yard, bikes and skates etc.
• Talk to me, your CENTURY 21 Sales Professional about additional safety tips to help protect you and your family.

Remember, we are selling your house together. Your committment to the sale is very important to allow me to do the best I can for you my customer.