LONGMONT – Imagine sitting at the closing table ready to purchase a dream home. “Everything you own is in a truck sitting outside. You’ve turned in the keys to your previous living space and are ready to sign,”
said Realtor Chad Patterson, of RE/MAX Traditions.
The escrow officer walks in with the paperwork and the seller asks, “Has the funds from the lender been received by your office?” The escrow officer says, “No, we are waiting on confirmation it was sent. We should receive the funds before we are done signing.”
“The seller stands up with their agent and says you are officially in default, then walks out with your $4,000 of earnest money and you lose your dream home,” added Patterson. “This is why choosing a local mortgage lender is your best option. Always ensure your lender is aware Colorado is a good funds state, meaning all funds must be received at the time of closing.”
Patterson lists the following ten questions for buyers to consider when choosing a lender that will help them realize their dream of homeownership:
No. 1: When a buyer reaches out to their lender, they need to ask if they are speaking with the same representative that is directly involved in their loan and not reading an update report from a call center.
No. 2: How accessible is the lender to the real estate agent and buyer?
No. 3: Does the lender know or have relationships with Colorado appraisers? “This will be of great importance with the short inventory market we are experiencing in Colorado,”
No. 4: Are they accessible over the weekend to provide the agent with a pre-approval letter? “You never want a ‘form letter’ for more than the purchase price,” stressed Patterson. “You’ve just notified the seller you can pay more. Additionally, if you’re competing for the home, you might have to have your offer in ASAP.”
No. 5: Can the listing agent of the home the buyer wishes to purchase call, verify and receive confidence the loan will be completed on time? “I call on every one of my listings prior to my seller accepting one offer over another,” added Patterson.
No. 6: Who are their team members? “Does the right hand know what the left hand is doing?” asked Patterson.
No. 7: Are they educated on every type of loan available? “Ensure your lender is qualified to originate every type of loan that you are available for, including loans from the USDA and CHFA,” said Patterson. “Just because they didn’t offer those types of loans doesn’t mean you’re not qualified.”
No. 8: Has the buyer made sure to verify all costs of each loan to ensure the loans are comparable? “I’ve helped buyers avoid a short-term gain on closing costs that could have potentially cost them thousands of dollars in the years ahead,” noted Patterson.
No. 9: Is the lender invested in the buyer? “Ensure everyone that is involved in the purchase of your home is passionately invested in you and your dream for home ownership,”
No. 10: Will a representative be present at closing? “Having a lender present to handle any problems can be the difference between your dream home and disaster,” concluded Patterson.
Chad Patterson, of RE/MAX Traditions, specializes in helping buyers, sellers and veterans, and is a real estate divorce specialist and Certified Negotiation Expert (CNE®). For more information, Chad can be reached at 970.518.5462. The office is located at 2204 18th Ave. in Longmont.