In a sellers and shifting market, strong financing is the best offense.
The value of a relationship with a verified lender can be the difference between a contract that will not see closing and a successful transaction. It’s the fiduciary duty of the agent to verify and vet the buyer for his or her client. It’s also the responsibility of the buyer’s agent to vet the buyer for the seller’s agent.
I recently had an interesting wrench in one of my transactions that I feel everyone can learn from. Here’s the situation that transpired:
- Buyer was transferring to Cincinnati for a job
- He had a mortgage on an out-of-state house with USAA
- He had a strong amount of money in the bank
- Buyer thought it was in his best interest to use USAA instead of one of my preferred lenders for their home purchase in Cincinnati
- He wanted to buy a house three months in advance so renovations could be done prior to relocation
- 21 days from closing, buyer was informed that USAA couldn’t loan money “unless the borrower is within 60 days of gaining their employment”
- Buyer needed to generate an $20k additional to close with USAA
My client then asked me to delay closing from mid-March to the first of May—and that was going to be a deal breaker. When we wrote a contract for the house, we were in competing offers and ours was chosen because of relationships; both offers were identical.
Then we talked to my preferred lender, Huntington Bank, which has a portfolio product they can offer my client—a physician loan:
- 0% down payment, matching interest rate
- zero Private Mortgage Insurance (PMI)
A homerun from the local group! This information intrigued the buyer, but if the financing was changed this close to the closing, closing would be delayed.
We evaluated each option and decided to stay the course with USAA, the national provider. To overcome the underwriter’s 60 days from gaining employment rule, the buyer had to bring 5% more money to closing, approx. $19,500—a huge expense!
I was fortunate to have a great client with good financial backing who was able to accomplish the transaction and save us from a tailspin that would have resulted in the sellers removing themselves from the contract. The lesson here: Shop your mortgages, but ask the right questions—and work with a knowledgeable agent who can navigate this delicate space.
For great service from a local Cincinnati lender, call Huntington Bank’s Matt Miller at 513-770-2060, email matthew.miller@huntington.com. He has the team behind him to service you for physician loans and more!
