A real estate business typically has its sales flowing steadily throughout the year. As a real estate agent, applying for a real estate cash advance can be of help in reducing the hassle and devastation that is brought about by expenses such as settling bills, advertising and marketing your business and giving compensations to your employees.
So what does a real estate commission advance entail? Going through this guide will help you understand the fundamental basics of real estate commission advances and also answer any questions that you may be having in mind.
- Understand how the service works
You need to know what exactly you are dealing with. What exactly is this advance? A real estate commission advance is a financial service that permits an agent of real estate to sell a portion of their pending commission for a fee.
In most occasions, your advance will be deposited to your bank account via a wire transfer. The speed of this process will depend on factors such as the time taken to investigate before the disbursement is undertaken.
- Know when to take out an advance
As long as you’re a broker or an agent, you can apply for a commission advance anytime you need quick access to finances, either for business or personal reasons.
- Familiarize yourself with the requirements
For most real estate companies, credit checks are not a primary requirement. This is because these companies rarely consider credit scores in the process of giving a commission advance.
- Understand your reasons for taking an advance
There are some reasons why a real estate agent can take a commission advance. You may want to settle an expense that has exceeded your savings. In such a case, this commission will help you to get finances quickly to take care of the expense.
- Know the requirements of the application
When seeking for an advance, it can take less than twenty minutes to get the application form filled out. On the form, you will be required to provide details of;
- The amount of advance that you want
- Legal documents such as a passport for identification
- Whether you’re representing the seller or buyer
- Instructions on where to wire your advance, e.g., bank account number
- Information that is related to the lender and the lending officer
- Paperwork showing the net fees that are owed to you
- Information relating to the property on which you’re seeking an advance
- Determination of fees
You have to understand that some factors will determine the price that you will be required to pay. Your advance application is first assessed before any payment information is given out.
- Know what is considered in an application request
Underwriters dealing with such services always look at any data that is related to the transactions that you’ve completed for a particular period. As a real estate agent, you are required to have at least one new deal that is active and scheduled to close in 45 days. Also, the underwriters always look at any pending and active listings that you have.
Author Bio: Isabella Rossellini is a marketing and communication expert. She also serves as a content developer with more than seven years of experience. She has previously covered an extensive range of topics in her posts, including business and start-ups.