FOR REAL ESTATE BROKERS
10 ITEMS EVERY REALTOR SHOULD KNOW
THAT WILL HELP US HELP YOU
Flood Zone
Is the property in a FEMA designated flood zone? Let the lender know up front.
Utilities
The seller needs to make sure the utilities are turned on and operational for the appraiser’s inspection.
Well and Septic
Does the property have well and septic? Let the lender know up front.
A Corporate Entity
If the seller is a corporate entity or trust, furnish the lender with written proof of who is authorized to sign on behalf of the selling entity.
Income
Are there any income producing aspects of the property that will make the property ineligible for USDA financing? Let the lender know up front.
Repairs
If the property has been rehabilitated/remodeled/repaired, furnish the lender a list of those repairs with the contract so they can be included in the appraisal.
Condo
If the property is a condo, please let us know if any entity owns more than 10% of the units and if the budget allows for 10% of the gross annual income to be dedicated to reserves.
Unpermitted Improvements
Are there any unpermitted improvements/additions to the property? The property may be ineligible for FHA, USDA, or VA financing if it is. Let the lender know up front.
Addendums
Make sure all addendums are furnished to the lender up front, as well as the settlement agent contact information, and if the closing will be held remotely.
Safety Issues
The seller needs to make sure any “safety issues” are in good repair at the time of the appraiser’s inspection. Lender and Investor (FHA, VA, USDA, Conventional) guidelines supersede any “as is” contract.