Finally...my buyers accepted a deal last night for a new construction that I found them. This was my very first one. My loan officer is out of town and will be back this weekend. My buyers are asking me how much their monthly payments would be. Is this something I should know or the loan officers. Im kinda confused. After the offer was accepted, i faxed it over to the listing agent. Then typed up a clean copy of the contract and made 6 copies and had the buyers signed all 7 of them. 1 goes to buyer, 3 goes to listing agent(for herself, her seller and her broker), 1 copy for myself, 1 copy for my broker, and 1 copy for the loan officer.

Not only should you know how to provide an estimate of what their mortgage payment will be... you should have provided the buyers with an estimate of what all the closing cost would be and made sure you identified in your purchase contract who would pay what closing cost.

Since your dealing with a new build... I sure hope you registered with the builder or you may find at closing... you get nothing for your efforts.

You really need to discuss things with your broker to assure your not placing your customers in a less than desirable position... or one they find impossible ... such as not being qualified to buy the home.

You are a REALTOR and not a lender, your job is to find them a house and assist them in finding financing. I never tell my clients how much their monthly payment will be and I never tell them what their closing costs will be. It is a job of a lender to give them all the financial information and NOT mine. This is how I have practiced this business for 6 years and I have never had a problem.

It also sounds like this home was in the MLS even though it was a new build, so you shouldn't have any problems with getting paid at closing.

The other posts are absolutely correct. It's actually against NAR code of ethics to practice outside of your area of expertise. We aren't supposed to be lawyers, inspectors, or loan officers. There are some mortgage payment calculators on bankrate.com or mortage101.com, but a good loan officer can use ARMS and other techniques for getting the buyer the payment they want.

On a different note, you may want to rethink having buyers sign 6-7 copies. I don't see why this is necessary and I've never heard of any seasoned agent do that. My buyers sign the contract and I give them a clean copy. The agent gets the original (hand delivered) and I make 2 copies for myself and my broker. Most buyers won't have time or patience to sign more than a couple copies of the documents, even if you have an ok reason for doing so.

I have to kindly disagree with those who say you shouldn't provide your buyers with an estimate of the monthly payment. How the heck could a buyer confidently and comfortably sign an offer not knowing how much this home will cost them every month?! It is so simple to do with a basic financial calculator. Punch in the loan amount, term and rate and you get the Principal and Interest payment. Add taxes and insurance to it and you've got a very good estimate.

If you had your buyers pre-qualified, a good mortgage agent would have already discussed an approximate interest rate with your clients that you could use for the calculation. If you are concerned about liability, just clearly explain to them that this is an estimate and that the mortgage agent can give them a more exact figure.

Closing costs can also be estimated, but not with such preciseness. Again, if you have a good mortgage agent, that agent would have discussed closing costs with your client when pre-qualifying them. In fact, I tell every mortgage agent that I expect them to go over closing costs on day 1 so my clients don't end up looking like deer caught in the headlights at closing. (If the mortgage agent complains, find another!)

My old HP 12c still does a good job of giving the buyer a good idea of monthly payments.
Obviously, you want to take your buyer to a lender and get them pre-qualified asap, which only the lender can do. But giving a buyer an estimate of monthly payments, is just something every Realtor should be able to do.

the loan officer should have already told them approximately what their monthly payments would be.

Hmm. I was under the impression that the buyers wanted a more definitive answer than a quick estimate on a calculator. It's a basic function to provide general information about how loan payments work, so why would that be a question? Buyer packets should have payment tables and most mortgage sites provide quick scenarios based on down payment amount, interest rate, and terms.

If I was mistaken and the buyers just want a quick estimate, I'd tell them that the payment should be around 1% of the offer price (in my area). If they want scenarios, I would not provide them in writing, but could quickly get the numbers on my HP calculator. If the buyers still want to play with additional scenarios, they can go to the aforementioned websites or I'd give them the formula.

Most buyers should already be pre-approved and have a good faith estimate before the offer is sent anyway, but that's in a perfect world.

Buyers want to get answers right away. It's good that if you don't know the answer that you be truthful and say, "I don't know." Since this is your first transaction, it is advisable that you work closely with your broker or mentor to make sure all contingencies and obligations are met.

New construction can be tricky. Yes, good point from an earlier post that some developers will not pay unless there is an agreement. It is wise to check that first. First deal, yes, it can be exciting, but real estate is heavily regulated, so you need to be able to protect yourself and your clients.

If you need to calculate payment, feel free to use my website as a future resource (www.vanderburghrealty.com). If the buyer is asking about closing costs, then it gets more involved, but typically estimate between 3% to 6% in closing costs; more if the deal is complicated.

Six copies is a lot to sign. It's understood if you are out in the field and doing that for efficiency, but it gets risky because someone might contest that he has the "real original". Speak with your broker about this one.

I hope this helps. Please keep us all updated on how this transaction goes.

We should always tell our clients honestly that loan officer can give them exact number for the mortgage payment. We should ask for time and get back to them with right answer.

You can order following calculator which is very good for new agents like us.


http://www.amazon.com/exec/obidos/tg/det...garden&n=507846

Has anyone bought one of those calculators? How well was it to understand at first? Is it a must have and you won't go anywhere without it?

I keep the HP in my briefcase. I don't use it too often, but it's easily understandable. Your background will probably determine how well you understand business math, but the calculator itself works fine.

My appointment book as all the mortgage payment, tax info ect in there so all you have to do is add it up and you have the payment which is so nice! I flip to a page and in 1 minute I am done.

Angie

It takes all of 10 minutes for a lender to whip up a good faith estimate.

Well when the lender is not available like tonight @ 10:30 PM I was able to give him a payment in 1 minute...
Angie

Call me crazy but I make it a habit to know how much a thousand cost to fianace at current rate for 30 years.Multiply that figure by number of thousands financed.Divide yearly tax amount by 12 and yearly homeowners insurance by 12, then add that to above amount. Also add pmi, if applicable. This way you do not have to say , I have no clue what might be your monthly payment.

I learned in my first month to NOT take on the job of the loan officer. My buyer had ner own mortgage broker who was a hack, and I ended up being looked to get the loan going because I spoke in detail of the loan process and closing costs. When her hack didnt know what he was doing she looked to me, rather than him. We got to closing without long term damage, but the streess was unneeded.

I absolutely suggest using a seasoned mortgage banker to all of my other buyers. The mortgage banker I work with has been priceless in subsequent challenging deals.

I can always reach him at 10:30 PM, however I wouldnt be with a client that late. No way!

This mortgage banker is an expert and a professional. He covers the financials. He doesnt show homes or write contracts.

Ok, I am a newbie but I have been around real estate for years. I agree with those that say it is not our job to calculate payments and such for our clients. For starters, they should already know these details as we should only be working with qualified buyers and not lookers. Something many agents need to learn. Not too mention, there are so many options & factors when dealing with mortgages. Why sell yourself short and lose a sale for mis-calculation a payment. For example, my personal home is for sale currently, and someone could pick it up for $1100 month or $2400 a month. You can see the difference.

As for the 6 copies, my broker is having me pick 6 up tonight to take to my client. I guess everyone has their own ways. I'll do it their way though as they have been around longer than I've been alive:))