Forming relationships either personal or in business is key to an open dialogue when issues arise. For example when a couple first start getting to know one another, how each one handles adversity of any degree when it comes is extremely important. Does one party get frustrated and angry? Maybe the silent treatment? A solid relationship keeps the lines of communication open so when, not if, a problem comes along, it’s dealt with openly. The very same relationship applies to business partners as well.
In the mortgage industry, it’s key to get to know the various third party providers being used by real estate agents, lenders and loan officers. First and foremost, it’s a matter of trust. At the very beginning of a business relationship there will likely be a small amount of skepticism. Until a business performs as promised, there is no solid evidence the business can back up their claims.
For instance, let’s take a look at a title company and a loan officer ordering title. Depending upon the amount of real estate activity in the area, a standard preliminary title report might arrive in five to seven business days. With a 30 day escrow period that’s plenty of time to include the title report in the loan file before sending it over to an underwriter. But, let’s say the closing is taking place sooner than 30 days. Maybe the closing is scheduled for 15 days out. That seven day window doesn’t give the lender enough time to take care of any issues that might show up on title.
One of the items title reports has is a list of liens that have been filed against the property, when the filing took place and when the lien was released. But the title report that came in seven days later shows an outstanding lien on the property. The lien was in the name of a previous lender but for some reason the lien release was either never recorded or never satisfied.
A loan officer with an established relationship with the title company can pick up the phone and contact their title insurance representative and tell that person the problem. Because of an established relationship and trust, the title company will immediately address the issue and verify the remaining lien has been paid and released. In turn, the loan officer continues to send business to that same title agency in return for acting on the client’s behalf so quickly. An occasional title order from a loan officer might not get that much quick attention.
Let’s now take a look at credit reporting. Unfortunately credit reports are known for having mistakes. Yet one of the reasons there can be mistakes on a report is that a business didn’t properly update a credit account. Maybe a credit card account is still showing as open when in fact it was closed long ago. The loan officer can then call his customer service representative at the credit company and explain the issue. The credit representative will then act to verify the account has been closed. Credit report mistakes can be cleared by the credit company typically within 24 hours and many times even the very same day. Consumers on their own trying to fix errors would find it might take a month or so to get the mistake corrected. Since there are three credit repositories, the consumer would need to contact each individual bureau and provide the bureaus with information verifying the account was in fact closed.
Businesses that are loyal to one another form bonds that help make the home buying and financing process a smooth one. When time is a factor, being able to act quickly makes sure the loan closes and funds on time, every time.