What is the difference between a purchase and a refinance?

Clients ask Orion’s brokers this occasionally, and the answer is, “A great deal.” At its most basic level, a mortgage loan consists of personal and financial information is collected, information is processed, submitted, approved and the loan is funded.  

Our brokers know that we’ve shifted away from refis and more toward purchases, and purchases include additional variables that must be considered, managed and solved. Are there items on a borrower’s credit report that will require additional work? Are their funds for down payment and closing costs available and in the bank? Is their income verifiable and eligible for consideration? Do they own a home now and does it need to be sold before closing this loan?  

Our brokers tell their clients that finding a home and writing an offer will require a strong pre-approval package and the ability to communicate to the selling agent confidence in our ability to close the mortgage. An accepted offer creates a firm deadline to meet which means managing timing for appraisal, loan processing, submission and approval - coordinating final conditions and communicating timing to the agents, escrow and title companies to name just a few. 

Other issues can create delays such as the seller having an issue on the home they are buying causing us a possible delay in closing. What if the appraiser discovers a problem with the property that will need to be repaired before we close? Could this have been prevented with proper questioning of the agents before we order the appraisal and corrective measures taken? These are events that Orion is experienced in handling. 

There are hundreds of "what-if" scenarios that can come up during a purchase transaction which will need to be successfully handled. Our AEs work on communicating with the real estate agent to ensure a solid foundation of a smooth transaction and ability to solve problems that may pop up later in escrow as everyone has built a level of trust and confidence. Buying a home is not the time to "try him out;" there is too much at stake for Orion, our broker, and the client. Orion understands this.

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