1. Ask your buyer to get their homeowner's insurance in place and a binder issued as soon as possible after they are under contract. Underwriters are now asking to view the binder before issuing a final "clear to close."
Underwriters want to make sure the coverages are adequate and the actual monthly cost is not higher than the estimate at time of conditional loan approval. A difference in the premium amount can affect the borrower's debt ratio and therefore could affect the loan approval.
2. If your buyer is getting a pest inspection (and I highly recommend that they do), please provide the front and back page of the Wood Destroying Insect Report (aka WDIR) to your loan officer as early as possible in the process. If there are issues that need to be addressed you want to ensure enough time to address them.
Partnering with the right mortgage professional is more important than ever! I have a process in place to stay on top of these details. Call me anytime. Thanks.
