INTERNET VOLUME LENDERS - Are They Beginning to Bug You?

Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

I am mad tonight!  Hopping Mad!  Really!

Even today, Lenders working only on the Internet promise to save homebuyers fistfuls of money!  And easy approval!  Timely closings!

Likely, Homebuyers and Real Estate Practitioners - if you see claims like that - RUN FAST!  VERY FAST!

Several this year have come from a VA-Specialized Lender based in MO.  A volume company.  Fast, easy, they say!

But they don't deliver!

I closed a loan through them on referral this year.  They must have liked my Real Estate Broker Services, and the firm referred me half-a-dozen referrals since.  And, for these referrals, I am most grateful!

But, the service?  SUB-PAR!

Only two out of the six transactions closed on time.  Even those that were timely involved hours-long closing delays at the table.

The others had lengthy underwriting approval delays.  And not just because of today's far more stringent underwriting standards!  Many involved basic sloppiness in advance of the loan being submitted to the underwriting department.  Incomplete packages.  Uncompleted basic forms.

And a lot of excuses from our Loan Originator contacts!

One Loan Originator muffed a basic pre-approval - qualifiying one of our buyer clients - a Registered Nurse - for $100,000 more than she actually qualified for!  She literally had to get married to have enough income to qualify for her under-contract home!

The same Originator is one week late on another closing - a Navy Veteran and his family.  He failed to complete even the most basic required paperwork until one day before the sale was due to close!  The buyer is at wits end - and so are we, his Buyer's Agent Team, here in Chicago.

And the most galling thing here?

The buyers have to pay a 1% Loan Originating Fee on Their Deal, and, as their Real Estate Representatives, we must pay a 25% Referral Fee to their affiliated brokerage company.  (In all fairness, this lender does offer a $500 Visa Card to its clients when they close - but not without enduring considerable hassle along the way!)

Money, time, hassle being saved here?  I don't think so!

Perhaps these Virtual Companies are trying.  But, if they are, they often aren't up to the task!

If they aren't trying, we have a far more serious problem . . . yes?

Am I alone here?  Would love it if you would share!



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Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

I cringe when someone wants to use a resource like that -- yikes.

Sep 15, 2009 06:32 PM #1
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Dean Moss

Dean's Team Chicago IL Real Estate Team
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