September 4, 2024 • 15 mins
Are seller-paid commissions affecting your closing costs? Not at all! Tune in to Benchmark Happenings for an eye-opening conversation with Jonathan Tipton and Steve Reed from Benchmark Home Loans. They unravel the complexities of the National Association of Realtors Settlement and clarify its impact on real estate transactions. Discover the recent changes in VA loan regulations that now allow buyers to pay commissions, and why it's crucial to negotiate these commissions into the purchase price rather than adding them to the loan amount. You'll gain invaluable insights on how to ensure smooth transactions and proper compensation for agents by working closely with loan officers.
We also dive deep into the importance of a buyer's representation agreement for loan processing and approval, especially for VA loans, with a look toward its future application to other loan types. Learn why early communication between agents, lenders, and buyers is pivotal to preventing discrepancies and avoiding delays. With a special focus on customer service, Jonathan and Steve advocate for a concierge approach—ensuring constant communication and availability to create a seamless experience for all involved. Don't miss out on these essential tips for ensuring accurate loan estimates and achieving a hassle-free closing process.
To help you to navigate the home buying and mortgage process, Jonathan & Steve are currently licensed in Tennessee, Florida, Georgia, South Carolina, and Virginia, contact us today at 423-491-5405 or visit www.jonathanandsteve.com.
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Episode Transcript
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Speaker 1 (00:00):
Benchmark Happenings brought to you by Jonathan and
(00:03):
Steve from Benchmark Home Loans.
Northeast Tennessee, johnsonCity, kingsport, bristol, the
Tri-Cities one of the mostbeautiful places in the country
to live Tons of great things todo and awesome local businesses.
And on this show you'll findout why people are dying to move
to Northeast Tennessee and onthe way we'll have discussions
(00:26):
about mortgages and we'llinterview people in the real
estate industry.
It's what we do.
This is Benchmark Happeningsbrought to you by Benchmark Home
Loans and now your host,christine Reed.
Speaker 3 (00:43):
Well, welcome back everybody to another episode of
Benchmark Happening so today.
It's a rare treat that we haveJonathan Tipton and Steve Reed
joining us.
Jonathan, it's sort of likepulling teeth to get him to come
on and do a podcast.
Thank you for being here,Jonathan, I'm here.
Speaker 4 (01:01):
He's a busy guy.
You got me.
He's a busy guy.
Speaker 3 (01:04):
Well, you know what I think today is really important
.
We're going to keep it shortand sweet because we want the
realtors to listen to this.
We've got a lot of buzzconcerning the National
Association of RealtorsSettlement and I wanted to have
both of you, jonathan and Steve,on so that we can clarify what
these changes will look likegoing forward.
Does that sound good?
Speaker 2 (01:25):
Sounds good Awesome.
Speaker 3 (01:27):
So, jonathan, I'm going to start with you, because
it seems like the biggestconcern is what people have is
this Will the commissions paidby the seller for the buyer
impact the maximum closing coststhe seller can pay?
Speaker 2 (01:42):
Fortunately no, not on any of the loan programs.
That is not included in the capas of right now for any of the
different loan programs VA,conventional, fha, thda or USDA.
So no, it does not impact whatthey can get in.
Seller paid closing costs.
Speaker 3 (01:58):
Okay, all right.
So so, steve, before loanprograms like well, like the VA,
they would not allow a buyer topay commission to a realtor, so
has this changed?
Speaker 4 (02:11):
Actually it has changed.
Va came out and temporarilythey kind of have a temporary
regulation here that said theywould allow the buyer to pay
commissions.
So I feel like I'm about 99%sure that's going to go into a
permanent change.
So they've tried to follow suitwith Fannie Mae, freddie Mac
(02:32):
and, like Jonathan says, fha,usda, and kind of take the same
approach because it's reallyit's hard enough for veterans to
get their contracts acceptednow.
They really don't need anotherhurdle where they can't pay a
real estate agent, or this wouldreally be a tough spot for for
our veterans to be in.
So so I'm not too worried aboutthat.
(02:54):
They did say it was a temporarychange, but I think when the
final order is signed by thejudge, I believe it's sometimes
in November, november, I think.
So when that final order getssigned.
There's going to be a lot goingon in November, guys, you might
want to start to say you mightwant to watch the news, but I
don't know Half of it you can'tbelieve.
Speaker 3 (03:15):
So I don't know.
Back that one up a little bit,so are there any other?
And you probably alreadyanswered this, but are there any
other loan programs out therethat don't allow the buyer to
compensate the agent?
Speaker 4 (03:28):
No, not at this time.
So we're over that hurdle, sowe don't have to worry about
that.
Our biggest concern, jonathanand I both, when they first
announced this, was oh mygoodness, va's never allowed a
buyer to pay commission to areal estate agent.
So that was one of the biggestfears I think we had, and so VA
jumped in pretty quickly andalleviated that fear they did.
Speaker 3 (03:52):
Oh wow.
So, Jonathan, can the buyer'spart of the agent's commission
be added over and above thepurchase price, depending on the
type of the loan?
Speaker 2 (04:02):
So kind of a double-edged sword.
It cannot be added into theloan but you can add it into the
purchase price.
So as long as it's negotiatedinto the purchase price and
included in the purchase price,that's perfectly fine.
But you can't negotiate thecontract and then come back and
then add it on top of the loanif it's not been negotiated.
So just be sure, get with us,figure out how it needs to be
(04:23):
done up front and negotiate itin the contract up front.
And yes, it can.
Speaker 3 (04:26):
Okay.
Speaker 2 (04:27):
As long as it appraises, so it does still have
to appraise, but there is nolimitation on allowing that to
be added on top of the purchaseprice.
Speaker 4 (04:34):
Okay, yeah, and just to add to that just a little bit
and Jonathan said it perfectly,that's the way it is, but
really, as a real estate agent,just think of it like closing
cost almost, because you couldnever really add closing cost on
top of a loan amount orwhatever unless it's built in
the purchase price.
So it's really the same.
(04:56):
I mean build it in.
But just keep in mind it has toappraise.
Speaker 3 (04:59):
Has to appraise.
Yeah, Okay.
Well, I think now more thanever, it's going to be important
for realtors to work veryclosely with both of you guys
here at Benchmark.
Speaker 2 (05:10):
Probably more than ever.
I mean this is having usinvolved on the front end make
sure that everything goessmoothly and that we can get the
contract done correctly, andmake sure that you, as an agent,
are paid, and paid the rightway.
So I would agree yes.
Speaker 3 (05:22):
Yeah, and I think you know both of you are really on
the cutting edge of this.
You've taken the time to reallyeducate yourself.
So you know, for any realtorthat's listening to this podcast
, you know, I would highlyrecommend, you know, calling
Steve, calling Jonathan, youknow, with these questions to
(05:42):
help you navigate this process.
So, steve, if the buyer'spaying his part of the
commission, how will this changethe loan process and
requirements?
Will this amount show on thepaperwork?
Speaker 4 (05:57):
Yeah, and just to kind of add to what you were
saying as far as working with us, I mean, if this train goes off
the rails early on, it's headeddown the mountain, it's going
to be bad.
So we really all need to getheaded in the correct, right
direction from the start.
So everybody being on the samepage is more important than it
(06:18):
ever has been and it's alwaysbeen important, but it's really
so now.
I mean, if we're not on thesame page or even, in some cases
, working against each other,this thing's going to be.
It's not going to be pretty forour clients and we want them to
have the best experience.
So but to answer your question,as far as paperwork goes, we
(06:39):
don't have to put the buyerpaying commission.
On our paperwork we probablywill, because if you think about
it, like if the buyer's goingto be paying their agent
separately, so that's a separateline item, so they're going to
have that money they're going tohave to bring to closing.
We look at our bottom line onour loan estimate to tell us how
(07:01):
much money we need to verifythat that buyer needs.
So if that amount's missing,then you know I could see where
that could create some confusion.
Oh, he's supposed to bring this, but we've only verified this
so we don't have to put it onthe loan estimates.
There's a good chance.
We will.
It will be.
I think it has to be on theclosing disclosure doesn't it,
(07:23):
jonathan.
So it will be on that.
So it will change the process alittle bit, just for us to have
to keep in mind is the buyerpaying his agent direct or is
the seller paying it for him?
Because it will affect thatbottom line that they need to
bring to closing.
And it's not just as easy assaying, oh well, instead of
needing 20,000, he needs 25,000.
(07:45):
It's going to be oh, he needs25,000.
So we darn better verify thatearly on in the process or we're
going to have problems at theend.
So yeah, it will change some ofthe paperwork, a little bit of
the process.
Speaker 3 (07:58):
Nothing major, but it could be major if we don't look
at it yeah, I can see that at aclosing and a bombshell be
dropped on the buyer saying, oh,by the way, so all that really
needs to be talked about upfront.
The buyer needs to be educatedby the realtor that this is what
this is going to cost.
You know that needs to be paidso that when you guys are doing
(08:22):
your job and helping that personget the loan, then you need to
know that amount so that you canput it on the loan.
Speaker 2 (08:31):
And I think being sure that you educate them is
huge, because it's a good chanceit might be on our loan
estimate and when it is, ifyou've not explained that as a
realtor, that's going to put youin a really awkward situation
because it's going to bedisclosed on there in a dollar
amount form so or likely will be, and you know so.
I would be sure you'reeducating everybody up front,
which I know most agents do, butbe sure you're doing that up
(08:54):
front so they know exactly whatto expect and don't have any
surprises there.
Speaker 3 (08:58):
Good point I mean this is really, this is so
important, guys.
I mean this is really why thispodcast exists is to help
educate and get the word out,especially with this um it's so
important you have me here well,I agree, jonathan, it is, bring
in the big guns
Speaker 4 (09:19):
as important as it is .
It's really simple, but itreally comes back down to
communication.
So if people are notcommunicating, this could get
really complicated in a hurry.
But as long as we're talkingabout it and we say, hey, let's
do it this way and everybodydoes their part, this is easy.
This is not bad.
But it could be bad if it's ifit's not communicated correctly.
Speaker 3 (09:43):
Absolutely, you know, and I think it all boils down
to everything that we do.
It's all about communication,and I mean our country's off the
rails basically because peopledon't communicate anymore.
So I think, steve, that's sucha great point.
Of course, now we've got thebig guns here with us today.
Speaker 2 (10:03):
Not really, but I had to throw that in there.
Speaker 3 (10:06):
I love it, but it is, and that's like I said you guys
, that's why you exist.
I mean, you're professionals,the top of your industry.
You truly care.
People trust you, they valuewhat you bring to the table and
I just know that the realtorsare going to really appreciate
(10:27):
this.
Speaker 4 (10:27):
Yeah, and just so you know, I communicate better at
work than I do at home.
Yes, you do.
Speaker 3 (10:32):
I just thought I'd throw that out.
I'm really good at my job.
Speaker 2 (10:35):
He is a good communicator here, but maybe
that's because we're both guysand we just communicate better.
But I don't know what it is.
Speaker 3 (10:42):
but I think that's the key.
You guys are guys, so that'swhy it flows so well.
You understand each other.
Uh, yeah, at home I will haveto say we, we've got some work
to do, but it's okay that's foranother podcast.
Speaker 4 (10:56):
That's a marriage 101 , marriage 101 podcast.
Speaker 3 (11:00):
Yeah, we'll do a Marriage 101 podcast of lessons
learned in 24 years of marriageI may be sick that day.
Well, we'll have Jonathan herewith us, so he can kind of keep
us both on.
There you go.
Speaker 4 (11:16):
We'll bring in the big gun for that one.
Speaker 3 (11:18):
Yeah, he'll keep us honest, he's around us enough to
know when one of us isn'ttelling the truth.
Speaker 2 (11:23):
Absolutely.
Speaker 3 (11:25):
Oh gosh.
So, Jonathan, we're going tokind of wrap this up.
So this last question justabout the underwriter Does the
underwriter require a copy ofthe buyer's representation
agreement for loan processingand approval?
Speaker 2 (11:42):
If it's not in the contract and it's going to be
paid by the buyer, we're goingto have to have something
documenting that.
So, yes, va requires it.
I haven't seen anything on theother loan types but I'm sure
that's to follow.
But I've already been told byour underwriters we are going to
have to have that.
So, just because we're going tohave to show where that money's
going at closing and documentthat and that goes back to what
Steve was saying earlier we needto have that on the beginning
because if we can have that onthe beginning, we'll have all
(12:04):
the numbers right.
Because what you don't want todo is not have it on the loan
estimate.
Get to closing, the underwriterthinks they need one amount and
they need a higher amount.
At that point the loan's goingto have to go back to
underwriting.
It'll have to go out of theclear to close status, I mean.
So it's going to be a lot ofmoving parts if we don't have
that up front.
So it's best just to go aheadand get us that up front.
And that is something we'regoing to start, kind of
reminding and asking for on thefront end too.
Speaker 3 (12:26):
So yeah, I was going to ask you if that's kind of
going to be in the process hereat the office.
Is having that reminder upfront and center?
Speaker 2 (12:34):
Yes, yes, we have asked Christy to start following
up and asking for that.
But always be sure and send itto us if you have it, and then
that way we know what it is.
Or if it's in the contract andit's clearly laid out and you've
negotiated it there, then wecan have that and show it in
that way.
But we just have to havesomething showing who's paying
and how much they're paying andwhat it's going to be,
especially if it's our buyer.
Speaker 3 (12:54):
Yeah, and it just goes back to negotiating
contracts.
Right, this is important.
Back to negotiating contracts.
Right, this is important.
It's a legal binding documentand we got to daughterize and
cross our T's more than ever,you guys are used to it because
you've been regulated for years.
I mean, I've seen Steve surviveso many ups and downs.
You've come in, survived upsand downs and we're in a market
(13:14):
that's been very, very difficult.
So this is new, but we'll getthrough it too.
So it seems now that, more thanever you know, it's really
important for agents and lendersto work closely together.
Speaker 2 (13:26):
It is yeah, and be sure you've got the
communication line both ways, besure you know if it's going to
be disclosed or not going to bedisclosed, because I say some of
the bigger credit unions andbanks will probably not put it
on the loan estimate.
And then you're going to haveto explain to your buyer why
it's going to be different inclosing and substantially
different, because when you adda commission in it's not just a
(13:48):
few hundred dollars, we'retalking thousands of dollars.
Speaker 3 (13:51):
And that's a huge difference.
Speaker 2 (13:53):
So you want to be sure you're explaining that up
front.
Speaker 3 (13:55):
And it really goes back to you know, you guys, it's
the concierge approach.
You're constantly communicating, updating your client, the
realtor and not many people dothat and you're going to pick up
the phone, call Jonathan.
You're going to get Jonathan.
Pick up the phone, call Steve.
You're going to get Steve.
It's not a robot after 5o'clock, right.
(14:17):
And then you even get you knowsomeone to speak to you on the
weekends.
Not that we all want to worklike that, but we just really,
you know, want people to knowthat you know we're going to be
there.
Benchmark will be there for youto help you.
So really it's going to.
You're creating that win-winfor clients and for realtors and
for lenders to make a seamlessexperience.
(14:39):
So just go back to what Stevesaid working together,
absolutely All right.
Well, thank you guys for beingon today.
Speaker 2 (14:47):
Thank you.
Speaker 3 (14:47):
Anything else you want to add before we wrap it up
.
Speaker 2 (14:50):
I think that's it.
Just reach out to us if youhave any questions or if there's
something that doesn't makesense.
Just reach out to us and we'llhelp you navigate through it.
Speaker 3 (14:56):
Perfect, all right.
Speaker 1 (15:00):
Thanks, let me navigate through it.
Perfect, all right.
Thanks, jonathan.
Thanks, steve.
This has been BenchmarkHappenings, brought to you by
Jonathan Tipton and Steve Reedfrom Benchmark Home Loans.
Jonathan and Steve areresidential mortgage lenders.
They do home loans in NortheastTennessee and they're not only
licensed in Tennessee butFlorida, georgia, south Carolina
and Virginia.
We hope you've enjoyed the show.
(15:21):
If you did make sure to Florida, georgia, south Carolina and
Virginia.
We hope you've enjoyed the showIf you did make sure to like,
rate and review.
Our passion is NortheastTennessee, so if you have
questions about mortgages, callus at 423-491-5405, and the
website iswwwJonathanAndStevecom.
Thanks for being with us andwe'll see you next time on
(15:44):
Benchmark Happenings.
Benchmark Happenings brought to you by Jonathan and
(00:03):
Steve from Benchmark Home Loans.
Northeast Tennessee, johnsonCity, kingsport, bristol, the
Tri-Cities one of the mostbeautiful places in the country
to live Tons of great things todo and awesome local businesses.
And on this show you'll findout why people are dying to move
to Northeast Tennessee and onthe way we'll have discussions
(00:26):
about mortgages and we'llinterview people in the real
estate industry.
It's what we do.
This is Benchmark Happeningsbrought to you by Benchmark Home
Loans and now your host,christine Reed.
Speaker 3 (00:43):
Well, welcome back everybody to another episode of
Benchmark Happening so today.
It's a rare treat that we haveJonathan Tipton and Steve Reed
joining us.
Jonathan, it's sort of likepulling teeth to get him to come
on and do a podcast.
Thank you for being here,Jonathan, I'm here.
Speaker 4 (01:01):
He's a busy guy.
You got me.
He's a busy guy.
Speaker 3 (01:04):
Well, you know what I think today is really important
.
We're going to keep it shortand sweet because we want the
realtors to listen to this.
We've got a lot of buzzconcerning the National
Association of RealtorsSettlement and I wanted to have
both of you, jonathan and Steve,on so that we can clarify what
these changes will look likegoing forward.
Does that sound good?
Speaker 2 (01:25):
Sounds good Awesome.
Speaker 3 (01:27):
So, jonathan, I'm going to start with you, because
it seems like the biggestconcern is what people have is
this Will the commissions paidby the seller for the buyer
impact the maximum closing coststhe seller can pay?
Speaker 2 (01:42):
Fortunately no, not on any of the loan programs.
That is not included in the capas of right now for any of the
different loan programs VA,conventional, fha, thda or USDA.
So no, it does not impact whatthey can get in.
Seller paid closing costs.
Speaker 3 (01:58):
Okay, all right.
So so, steve, before loanprograms like well, like the VA,
they would not allow a buyer topay commission to a realtor, so
has this changed?
Speaker 4 (02:11):
Actually it has changed.
Va came out and temporarilythey kind of have a temporary
regulation here that said theywould allow the buyer to pay
commissions.
So I feel like I'm about 99%sure that's going to go into a
permanent change.
So they've tried to follow suitwith Fannie Mae, freddie Mac
(02:32):
and, like Jonathan says, fha,usda, and kind of take the same
approach because it's reallyit's hard enough for veterans to
get their contracts acceptednow.
They really don't need anotherhurdle where they can't pay a
real estate agent, or this wouldreally be a tough spot for for
our veterans to be in.
So so I'm not too worried aboutthat.
(02:54):
They did say it was a temporarychange, but I think when the
final order is signed by thejudge, I believe it's sometimes
in November, november, I think.
So when that final order getssigned.
There's going to be a lot goingon in November, guys, you might
want to start to say you mightwant to watch the news, but I
don't know Half of it you can'tbelieve.
Speaker 3 (03:15):
So I don't know.
Back that one up a little bit,so are there any other?
And you probably alreadyanswered this, but are there any
other loan programs out therethat don't allow the buyer to
compensate the agent?
Speaker 4 (03:28):
No, not at this time.
So we're over that hurdle, sowe don't have to worry about
that.
Our biggest concern, jonathanand I both, when they first
announced this, was oh mygoodness, va's never allowed a
buyer to pay commission to areal estate agent.
So that was one of the biggestfears I think we had, and so VA
jumped in pretty quickly andalleviated that fear they did.
Speaker 3 (03:52):
Oh wow.
So, Jonathan, can the buyer'spart of the agent's commission
be added over and above thepurchase price, depending on the
type of the loan?
Speaker 2 (04:02):
So kind of a double-edged sword.
It cannot be added into theloan but you can add it into the
purchase price.
So as long as it's negotiatedinto the purchase price and
included in the purchase price,that's perfectly fine.
But you can't negotiate thecontract and then come back and
then add it on top of the loanif it's not been negotiated.
So just be sure, get with us,figure out how it needs to be
(04:23):
done up front and negotiate itin the contract up front.
And yes, it can.
Speaker 3 (04:26):
Okay.
Speaker 2 (04:27):
As long as it appraises, so it does still have
to appraise, but there is nolimitation on allowing that to
be added on top of the purchaseprice.
Speaker 4 (04:34):
Okay, yeah, and just to add to that just a little bit
and Jonathan said it perfectly,that's the way it is, but
really, as a real estate agent,just think of it like closing
cost almost, because you couldnever really add closing cost on
top of a loan amount orwhatever unless it's built in
the purchase price.
So it's really the same.
(04:56):
I mean build it in.
But just keep in mind it has toappraise.
Speaker 3 (04:59):
Has to appraise.
Yeah, Okay.
Well, I think now more thanever, it's going to be important
for realtors to work veryclosely with both of you guys
here at Benchmark.
Speaker 2 (05:10):
Probably more than ever.
I mean this is having usinvolved on the front end make
sure that everything goessmoothly and that we can get the
contract done correctly, andmake sure that you, as an agent,
are paid, and paid the rightway.
So I would agree yes.
Speaker 3 (05:22):
Yeah, and I think you know both of you are really on
the cutting edge of this.
You've taken the time to reallyeducate yourself.
So you know, for any realtorthat's listening to this podcast
, you know, I would highlyrecommend, you know, calling
Steve, calling Jonathan, youknow, with these questions to
(05:42):
help you navigate this process.
So, steve, if the buyer'spaying his part of the
commission, how will this changethe loan process and
requirements?
Will this amount show on thepaperwork?
Speaker 4 (05:57):
Yeah, and just to kind of add to what you were
saying as far as working with us, I mean, if this train goes off
the rails early on, it's headeddown the mountain, it's going
to be bad.
So we really all need to getheaded in the correct, right
direction from the start.
So everybody being on the samepage is more important than it
(06:18):
ever has been and it's alwaysbeen important, but it's really
so now.
I mean, if we're not on thesame page or even, in some cases
, working against each other,this thing's going to be.
It's not going to be pretty forour clients and we want them to
have the best experience.
So but to answer your question,as far as paperwork goes, we
(06:39):
don't have to put the buyerpaying commission.
On our paperwork we probablywill, because if you think about
it, like if the buyer's goingto be paying their agent
separately, so that's a separateline item, so they're going to
have that money they're going tohave to bring to closing.
We look at our bottom line onour loan estimate to tell us how
(07:01):
much money we need to verifythat that buyer needs.
So if that amount's missing,then you know I could see where
that could create some confusion.
Oh, he's supposed to bring this, but we've only verified this
so we don't have to put it onthe loan estimates.
There's a good chance.
We will.
It will be.
I think it has to be on theclosing disclosure doesn't it,
(07:23):
jonathan.
So it will be on that.
So it will change the process alittle bit, just for us to have
to keep in mind is the buyerpaying his agent direct or is
the seller paying it for him?
Because it will affect thatbottom line that they need to
bring to closing.
And it's not just as easy assaying, oh well, instead of
needing 20,000, he needs 25,000.
(07:45):
It's going to be oh, he needs25,000.
So we darn better verify thatearly on in the process or we're
going to have problems at theend.
So yeah, it will change some ofthe paperwork, a little bit of
the process.
Speaker 3 (07:58):
Nothing major, but it could be major if we don't look
at it yeah, I can see that at aclosing and a bombshell be
dropped on the buyer saying, oh,by the way, so all that really
needs to be talked about upfront.
The buyer needs to be educatedby the realtor that this is what
this is going to cost.
You know that needs to be paidso that when you guys are doing
(08:22):
your job and helping that personget the loan, then you need to
know that amount so that you canput it on the loan.
Speaker 2 (08:31):
And I think being sure that you educate them is
huge, because it's a good chanceit might be on our loan
estimate and when it is, ifyou've not explained that as a
realtor, that's going to put youin a really awkward situation
because it's going to bedisclosed on there in a dollar
amount form so or likely will be, and you know so.
I would be sure you'reeducating everybody up front,
which I know most agents do, butbe sure you're doing that up
(08:54):
front so they know exactly whatto expect and don't have any
surprises there.
Speaker 3 (08:58):
Good point I mean this is really, this is so
important, guys.
I mean this is really why thispodcast exists is to help
educate and get the word out,especially with this um it's so
important you have me here well,I agree, jonathan, it is, bring
in the big guns
Speaker 4 (09:19):
as important as it is .
It's really simple, but itreally comes back down to
communication.
So if people are notcommunicating, this could get
really complicated in a hurry.
But as long as we're talkingabout it and we say, hey, let's
do it this way and everybodydoes their part, this is easy.
This is not bad.
But it could be bad if it's ifit's not communicated correctly.
Speaker 3 (09:43):
Absolutely, you know, and I think it all boils down
to everything that we do.
It's all about communication,and I mean our country's off the
rails basically because peopledon't communicate anymore.
So I think, steve, that's sucha great point.
Of course, now we've got thebig guns here with us today.
Speaker 2 (10:03):
Not really, but I had to throw that in there.
Speaker 3 (10:06):
I love it, but it is, and that's like I said you guys
, that's why you exist.
I mean, you're professionals,the top of your industry.
You truly care.
People trust you, they valuewhat you bring to the table and
I just know that the realtorsare going to really appreciate
(10:27):
this.
Speaker 4 (10:27):
Yeah, and just so you know, I communicate better at
work than I do at home.
Yes, you do.
Speaker 3 (10:32):
I just thought I'd throw that out.
I'm really good at my job.
Speaker 2 (10:35):
He is a good communicator here, but maybe
that's because we're both guysand we just communicate better.
But I don't know what it is.
Speaker 3 (10:42):
but I think that's the key.
You guys are guys, so that'swhy it flows so well.
You understand each other.
Uh, yeah, at home I will haveto say we, we've got some work
to do, but it's okay that's foranother podcast.
Speaker 4 (10:56):
That's a marriage 101 , marriage 101 podcast.
Speaker 3 (11:00):
Yeah, we'll do a Marriage 101 podcast of lessons
learned in 24 years of marriageI may be sick that day.
Well, we'll have Jonathan herewith us, so he can kind of keep
us both on.
There you go.
Speaker 4 (11:16):
We'll bring in the big gun for that one.
Speaker 3 (11:18):
Yeah, he'll keep us honest, he's around us enough to
know when one of us isn'ttelling the truth.
Speaker 2 (11:23):
Absolutely.
Speaker 3 (11:25):
Oh gosh.
So, Jonathan, we're going tokind of wrap this up.
So this last question justabout the underwriter Does the
underwriter require a copy ofthe buyer's representation
agreement for loan processingand approval?
Speaker 2 (11:42):
If it's not in the contract and it's going to be
paid by the buyer, we're goingto have to have something
documenting that.
So, yes, va requires it.
I haven't seen anything on theother loan types but I'm sure
that's to follow.
But I've already been told byour underwriters we are going to
have to have that.
So, just because we're going tohave to show where that money's
going at closing and documentthat and that goes back to what
Steve was saying earlier we needto have that on the beginning
because if we can have that onthe beginning, we'll have all
(12:04):
the numbers right.
Because what you don't want todo is not have it on the loan
estimate.
Get to closing, the underwriterthinks they need one amount and
they need a higher amount.
At that point the loan's goingto have to go back to
underwriting.
It'll have to go out of theclear to close status, I mean.
So it's going to be a lot ofmoving parts if we don't have
that up front.
So it's best just to go aheadand get us that up front.
And that is something we'regoing to start, kind of
reminding and asking for on thefront end too.
Speaker 3 (12:26):
So yeah, I was going to ask you if that's kind of
going to be in the process hereat the office.
Is having that reminder upfront and center?
Speaker 2 (12:34):
Yes, yes, we have asked Christy to start following
up and asking for that.
But always be sure and send itto us if you have it, and then
that way we know what it is.
Or if it's in the contract andit's clearly laid out and you've
negotiated it there, then wecan have that and show it in
that way.
But we just have to havesomething showing who's paying
and how much they're paying andwhat it's going to be,
especially if it's our buyer.
Speaker 3 (12:54):
Yeah, and it just goes back to negotiating
contracts.
Right, this is important.
Back to negotiating contracts.
Right, this is important.
It's a legal binding documentand we got to daughterize and
cross our T's more than ever,you guys are used to it because
you've been regulated for years.
I mean, I've seen Steve surviveso many ups and downs.
You've come in, survived upsand downs and we're in a market
(13:14):
that's been very, very difficult.
So this is new, but we'll getthrough it too.
So it seems now that, more thanever you know, it's really
important for agents and lendersto work closely together.
Speaker 2 (13:26):
It is yeah, and be sure you've got the
communication line both ways, besure you know if it's going to
be disclosed or not going to bedisclosed, because I say some of
the bigger credit unions andbanks will probably not put it
on the loan estimate.
And then you're going to haveto explain to your buyer why
it's going to be different inclosing and substantially
different, because when you adda commission in it's not just a
(13:48):
few hundred dollars, we'retalking thousands of dollars.
Speaker 3 (13:51):
And that's a huge difference.
Speaker 2 (13:53):
So you want to be sure you're explaining that up
front.
Speaker 3 (13:55):
And it really goes back to you know, you guys, it's
the concierge approach.
You're constantly communicating, updating your client, the
realtor and not many people dothat and you're going to pick up
the phone, call Jonathan.
You're going to get Jonathan.
Pick up the phone, call Steve.
You're going to get Steve.
It's not a robot after 5o'clock, right.
(14:17):
And then you even get you knowsomeone to speak to you on the
weekends.
Not that we all want to worklike that, but we just really,
you know, want people to knowthat you know we're going to be
there.
Benchmark will be there for youto help you.
So really it's going to.
You're creating that win-winfor clients and for realtors and
for lenders to make a seamlessexperience.
(14:39):
So just go back to what Stevesaid working together,
absolutely All right.
Well, thank you guys for beingon today.
Speaker 2 (14:47):
Thank you.
Speaker 3 (14:47):
Anything else you want to add before we wrap it up
.
Speaker 2 (14:50):
I think that's it.
Just reach out to us if youhave any questions or if there's
something that doesn't makesense.
Just reach out to us and we'llhelp you navigate through it.
Speaker 3 (14:56):
Perfect, all right.
Speaker 1 (15:00):
Thanks, let me navigate through it.
Perfect, all right.
Thanks, jonathan.
Thanks, steve.
This has been BenchmarkHappenings, brought to you by
Jonathan Tipton and Steve Reedfrom Benchmark Home Loans.
Jonathan and Steve areresidential mortgage lenders.
They do home loans in NortheastTennessee and they're not only
licensed in Tennessee butFlorida, georgia, south Carolina
and Virginia.
We hope you've enjoyed the show.
(15:21):
If you did make sure to Florida, georgia, south Carolina and
Virginia.
We hope you've enjoyed the showIf you did make sure to like,
rate and review.
Our passion is NortheastTennessee, so if you have
questions about mortgages, callus at 423-491-5405, and the
website iswwwJonathanAndStevecom.
Thanks for being with us andwe'll see you next time on
(15:44):
Benchmark Happenings.
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