When a realtor is working with a client who is seeking a mortgage, it’s crucial to ensure that the lender has conducted thorough due diligence on the client. Here are some key questions a realtor should ask the lender:
- Pre-Approval Status: Has the client been pre-approved for a mortgage, and if so, what is the pre-approved loan amount?
- Credit Check: Has a comprehensive credit check been completed? What is the client’s credit score?
- Income Verification: Have you verified the client’s income through pay stubs, tax returns, and other relevant documentation?
- Debt-to-Income Ratio: What is the client’s debt-to-income (DTI) ratio? Is it within acceptable limits for mortgage approval?
- Employment Verification: Has the client’s employment been verified? Is the employment considered stable and sufficient to support the mortgage payments?
- Down Payment: Has the client demonstrated the ability to provide the necessary down payment? Where are these funds coming from?
- Assets and Liabilities: Have the client’s assets and liabilities been fully disclosed and reviewed?
- Loan Type and Terms: What type of mortgage loan is the client applying for (e.g., fixed-rate, adjustable-rate, FHA, VA, conventional)? What are the terms and conditions?
- Interest Rate Lock: Has the client locked in an interest rate? If so, what is the locked rate, and how long is it locked for?
- Appraisal and Property Conditions: Are there any specific property conditions or appraisal contingencies that need to be met?
- Approval Timeline: What is the expected timeline for the full loan approval process? Are there any anticipated delays?
- Contingencies: Are there any contingencies or conditions that the client must meet before final loan approval?
- Communication and Updates: How will you keep us updated on the status of the loan application? Who should we contact for regular updates?
- Closing Costs: Have the estimated closing costs been reviewed with the client? Are there any potential issues with covering these costs?
- Previous Issues: Have there been any previous issues or concerns with the client’s application that we should be aware of?
By asking these questions, a realtor can gain a clearer understanding of the lender’s due diligence process and the likelihood of the client securing the mortgage. This helps ensure a smoother transaction process and reduces the risk of unexpected issues arising during the purchase.
