Dawna Davies and her assistant Jodi Blanchard did an exceptional job in helping us sell our home in San Luis Obispo. Dawna’s intelligence and knowledge of the business made the whole complex process easy for us to understand and navigate. What seemed like counter-intuitive advice at the start—that we should be extremely thorough in discovering any possible problems with the forty year old house and present them in advance—turned out to streamline the final transaction by building trust in potential buyers and removing the possibility of unpleasant surprises and uncertainty for us. Her contacts with a wide range of local business people who carried out many preparatory operations quickly and economically offered another unique benefit. Her tact and amiability made our numerous interactions pleasant rather than wary. And Jodi’s work in converting the box full of documents from our files into a coherent house-maintenance-history binder meticulous and creative. From start to finish our involvement with Davies Company was personally as well as financially rewarding.
- Lenders can tailor preapproval letters. Strategically, we have found it best if the loan amount on your offer and the loan amount on your preapproval letter are exactly the same amounts. This prevents price escalation during initial offer negotiations due to the reveal of higher financial qualifications for the buyer.
- Lenders can help avoid underwriting concerns. Even if you negotiate great terms and price on a property, some buildings may be in such notably poor condition that they may not be approved for the loan. There is always potential for requirement for repairs prior to closing. By discussing the property problems with the lender in advance of contract acceptance, it might help avoid the purchase of the wrong property and steer clear of significant problems with the loan approval.
- Lenders can help a purchase stay on schedule. Both sides in a real estate transaction have time periods to comply with and commitments do deliver. If the lender is seasoned, cooperative, and is kept informed, they assist the agent with helping the buyers to perform timely, or even over-perform with the contract dates for loan approval and funding. This is very valuable in a competitive market where sellers may be increasingly confident that they will find another buyer if the current one does not perform on time and/or cancels.
- Lenders must approve any credits. There may be additional negotiations after acceptance, due to newly-discovered property condition and/or defects. At times, the parties may agree to monetary credits instead of actual repair work. If so, these agreements need to be written in a way that the lender and the underwriter will approve. Caution: The loan program that the buyer is expecting may have a credit amount that may not be exceeded. The lender’s advice and cooperation is critical.
- Lenders can keep in contact post-sale. Most loans are paid off or refinanced within 10 years or less. During your property ownership, rates or loan programs may change and there may be an opportunity for better loan terms for a refinance. An attentive lender will stay in touch and advise you when a refinance may be beneficial to your situation. Also, if you have a future challenge with loan documents, the loan officer may be able to share their experience to help you navigate a solution.