Too many times when a buyer selects the lender for their mortgage loan they feel like they are locked in, that no matter how strange things may get, they have no choice but to see it through. NOT TRUE at all. Your buyer agent has worked with many many lenders during her tenure as a licensed professional. If you are 21 days into the deal and the lender is making excuse after excuse for not ordering the appraisal, not only are you very likely in jeopardy of forfeiting your earnest money because the contingency period has ended or will end very soon, but something bigger is going on - you cannot accept "it's our process".
Even FHA loans which traditionally demand a 45 day window for escrow are moving along very quickly within the past year. Many are getting done in less than 30 days, it's really not unusual at all.
I recently worked with a high end buyer who was very well qualified and I knew this for certain because she initially consulted with two lenders that I know and trust. Ultimately prior to putting a property under contract she decided to work with an unknown mortgage broker that her broker had used with great result. I felt the hair on my neck stand up when I was told. My instincts are usually correct and they didn't fail me this time unfortunately.
From the start this broker was making every single step of the process uber difficult. We had a lengthy negotiation process. The buyer had an ideal closing date in mind but it wasn't carved in stone. Long story short, by the time we negotiated price and major points, we just left the closing date that both parties knew would not be possible, with the anticipation that we would be pushing it out by probably a couple of weeks. Immediately upon receiving the contract I was impolitely told (1) send me a legible copy of the contract with the added barb that he thought it was always interesting that agents have no problem sending him a legible copy of the commission agreement; and (2) that he requires at least 45 days to close, and (3) none of the contingencies are sufficient and should be moved out. He even had the gaul to tell my client that she should "make sure that your agent properly protects you by extending the contingencies" - as if we could do that unilaterally.
Needless to say we were not off to a great start.
It was one thing after another and I won't go into details but it was unpleasant and my client was ultimately convinced that he was not doing his job and refused to be accountable. The buyer moved the loan to one of the trusted lenders that I had originally recommended to her. Closing in 21 days or less. Appraisal ordered the next day and she is even getting a better rate and lower closing costs. The difference was several thousand dollars!
Does it matter to me? Absolutely, a great deal. I have the comfort of knowing that the transaction is being handled properly and that someone is working on the mortgage who wants to keep me and my clients very happy. Will it matter to me monetarily? Not at all. Consumers incorrectly assume that we push for our preferred lender to be used because we are getting a kickback. That is not only illegal but unethical. I just want to know that the lender knows what he is doing and intends to provide great service for all the right reasons.
It's wonderful that your friend or relative had a wonderful experience with their lender. But you have to ask yourself - did they really, or do they just THINK that they did? Food for thought.
Comments(0)