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Is your lender killing your business?

One would think with the state of the market in some areas, that many lenders would be falling over themselves to get some of the best buyers to buy homes right now. Well, it seems that may not be the case.

Lenders have really tightened up the purse strings and are becoming even more difficult to deal with.

Case in point, I have been working witgh this ame buyer for 5 years. he has purchased many homes thru me and intends to sell them thru me when he is ready. He has a creidt score over 750, has a great income and almost 20% down. We have been in escrow with a home that has appraised for more than the asking price and yet, one of the biggest lenders in the U.S. denied the loan! I have yet to get an answer as to why.

Now the sellers are in a panic and the ecrow should have closed a month ago! We have sent the packet to 2 other lenders and so far they are dragging their feet. our county doesn;t have too many comps in a 1/4 mile radius and they seem to think they should treat our area the same as the large cities!

whew! i am so glad for the "Rain because I can vent here and everyone here will understand my pain!

Posted by John Ford on 04/23/2008 11:28 PM

Comments (9)

lenders, humboldt, eureka, arcata

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9 Comments on Is your lender killing your business?

APR

2008

In my area because of the lending crisis the number of possible home buyers has dropped by 13%! We VERY fortunate though, job growth is up and so real estate values are on the rise.

that's awsome Christopher! Congrats! We are in the middle of an upswing here too, but the lenders haven't caught up with us yet.

Hey, give the lenders a break. They have lost so much money (partially through their own greed) that they are in a panic. Give them some time. Once they get past this crisis, they will be handing out money like water again. Good luck with your transaction. I closed a condo with a client who made over $200k and the bank acted like he was on the edge of bankruptcy.

The only sure money right now is the government backed loans I have had great luck with them.

Justin Thayer

Well it seems like your buyer is buying an investment property at 80%, from the looks of things it also points out hes maybe stated or a no doc customer? If this is the case No Doc N/O/O across the board has reduced dramatically and I am surprised your lender didn't notify you of these changes. Also I sense a hint of distressed market which also can kill the deal. There is hope check with my Company Wells Fargo with SI/VA should be able to get 80% N/O/O if its a straight to close 90% :) Best of luck!

Hi John,

It's o.k. to vent here, you know that because you're among friends in the Rain. Yet the way I see it, when one door closes I just pound on another. So far, I haven't had any big issues at all, yet I'm hearing about them all around me.

And we all know the lenders are having it rough right now themselves.