Who Touches Your Loan?

Continuing the “Real Estate Questions” series, I’m shamelessly stealing this from the KCM blog … I highly recommend reading the story and descriptions at their site. Lesson learned – work with someone who knows the people involved, who can make things happen (ethically and legally) and who can foresee issues. Knowing the people – one of the main reasons I strongly advise working with local lenders.

As a buyer, there is quite a lot that happens behind the scenes of your loan. “Meet” a few of those people:

– The Processor.

– The Appraiser.

– The Underwriter.

– The Loan Officer.

– The Closing Department. (in Charlottesville, that’s the attorney or closing company)


Further, I’m starting to institute rules that will most likely take effect next year – I won’t recommend lenders or attorneys who balk at implementing technology. Specifically, if the lender/processor thinks electronic signatures aren’t legal (which they are), I will not recommend them. If the attorney or title company doesn’t get my transaction management system (it’s dead simple), I won’t recommend them.

My clients come to me expecting me to recommend vetted professionals to add to their team. It’s time to move forward.

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5 Comments

  1. downtownenvy October 6, 2010 at 15:02

    Jim this is a great post for potential buyers. Even though we will someday be in the market for our second home, it has been six years since we bought our last house. The ins and outs of financing have changed so much, and I think that is is imperative that people understand just how important the right lender is in today’s climate. Thanks for this one!

    Reply
    1. Jim Duncan October 7, 2010 at 09:40

      Thanks, downtownenvy.

      There is so much that happens behind the scenes, and so many people involved that I think it’s crucial for consumers – buyers and sellers – to be aware of the moving pieces.

      Reply
  2. David Meek October 6, 2010 at 18:00

    Jim: You referenced your transaction management system in this article. I have looked at a lot of them (Relay, Settlement Room etc.). Which software do you use or was it custom designed? Thanks!

    Reply
    1. Jim Duncan June 6, 2012 at 05:45

      David – I use basecamp by 37 Signals. It’s what works for me.

      Reply
  3. Shoreview Homes for Sale October 9, 2010 at 22:17

    Jim, you make some excellent points to support the caes for local lending. This also has been my practice with my clients, and the ability for my clients to go sit face-to-face with their lending and processing team makes a considerable difference (improvement) in my conversion rate. It’s a fine harmony of ethics, efficiency and confidence in one nice buddle. Great post!

    Reply

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