Yesterday one of my agents sent me an email asking if lenders normally allow credits to buyers for repairs. The deal was structured where the buyer was getting approximately a 3% credit to closing costs and another 3% for repairs.
The mortgage broker handling the transaction (not our in house lender) at the 11th hour informed the agent that the repairs will be required prior to close of escrow, the lender would not allow a credit of this type. I asked the agent why the buyer used this lender. I was told that this lender offered a better price. Unfortunately this is an REO property that will not do the repairs prior to closing. They will only credit the buyer through escrow.
So much for the better price, because the deal isn't going to close. The mortgage guy should have known, or did know but decided not to tell everybody about this detail. They offered a price for something they could not deliver. The seller is out, the buyer is out, the listing agent is out, the selling agent is out, the escrow is out... everybody is out because the unprofessional lender did not do his job.
I have over 15 years of experience originating loans and a lot of them. I averaged 130 deals per year. When I told an agent I could do something, we did it. We did not play games. Unfortunately there are folks out there that compete on price but they really can't deliver.
If a buyer said to me they can get a better deal from someone else. My response would be probably not... what is important here is to first and foremost close. We want to secure a good deal on the financing, but we want to make sure that it is done correctly. Mortgages are not a comodity. The cheapest isn't always the best... go and ask all those folks in foreclosure if the cheapest deal they got was the best. Mr. Buyer, I would suggest you work with Arrowhead Home Loans Inc. we know them, they can be trusted, they offer good value, and the offer expert advice. Use them, you won't be sorry
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