DEMANDS, DELAYS AND DENIALS

By
Real Estate Broker/Owner with Beam & Branch Realty TREC #547752

DEMANDS, DELAYS AND DENIALS

Paperwork

Yesterday I read with interest Joe Petrowsky's blog concerning the restrictions in lending that are affecting all of us.  Closings are now met with major challenges causing our clients and each person involved major headaches and sometimes heartache.  The game has changed folks and anything can happen.

As agents, we now have to prepare and counsel our clients to expect demands from underwriters, expect delays and to be realistic that a denial could come.  I am seeing the most bizarre demands from lenders causing unbelievable delays in our closings.  Unfortunately I am seeing denials to people who have good credit but because their income comes in through self-employment means or even royalties from oil wells. These hard working people are being turned away and finding homeownership slip away.

I am finding that by having the discussion early on with my clients about the reality of what is really happening out there helps tremendously when the hiccup occurs.  There are several things that we can do to help avoid and to prepare for these situations.  Here are a few tips that help when things get rocky:

  • CHOOSE your lending partner carefully.  Finding a lender who is available, communicative and proactive is worth a lot.
  • SHOP lenders and make sure you have several who can offer creative and innovative solutions when problems arise.
  • DISCUSS issues are more common than ever and to be prepared for them.
  • DO NOT FILL UP THAT MOVING TRUCK TOO EARLY.  Let your movers know that your move could be delayed and make sure they are willing to work with in the event this happens.
  • BE PATIENT.  Being realistic that a delay can occur can help tremendously when things are going nuts.

Bottom line folks, the game has changed and we all need to be ready, stay calm and be prepared for closings that are anything but smooth.  When we do get that easy close, be thankful as this is a rare occurrence.  Hopefully things will settle down a bit.  In the meantime, take a deep breath and handle each challenge calmly and don't panic!

Buying a new home is a great investment.  Give me a call today.  I have great lending partners who can help you every step of the way.  I would love to assist you!

 

Posted by

Beam & Branch Realty       

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®, 

        Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas!

PaulaMac59@gmail.com 

      CNE

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 John Maxwell

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Copyright 2020 Paula McDonald

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Linda Edelwich 10/03/2011 04:42 AM
Topic:
ActiveRain Community
Groups:
The Woodlands Real Estate
Diary of a Realtor
MONTGOMERY COUNTY TEXAS
BROKER'S BACK PORCH
Tags:
closings
lending issues
lending delays

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Show All Comments
Rainmaker
647,243
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Absolutely terrific advice in this post Paula.  The time to hire the movers is after you have your approval.

Sep 29, 2011 02:09 AM #1
Rainer
354,827
Andrew Capelli
Hoover Elementary - Hazel Park, MI

Paula: Great post- you are so right.  While I think most of us in the business are are optimistic by nature, setting realistic expectations up front can reduce a tremendous amount of potential anxiety & frustration.  It's important to adhere to the old adage: "under-promise and over-deliver."

Sep 29, 2011 02:10 AM #2
Rainmaker
3,835,892
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Paula. What a well written and focused post. Great job!. It is a new world and the sooner we understand and convey it, the better. Suggested.

Sep 29, 2011 02:19 AM #3
Rainmaker
686,859
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Paula: Absolutely. I am working with a commercial buyer right now. If you think it was hard to ge a commercial loan before, try it now. It's not just the hoops you have to go through, but even finding a lender who will work with you is tough. It doesn't matter who you are.

Sep 29, 2011 02:19 AM #4
Ambassador
628,742
Jeanean Gendron
The Address Realty - Redding, CA
Specializing in Selling Unique Properties

Hello Paula, I am usually right with you on this but I currently have an escrow with a VA loan that the loan officer got it done in record time. We just finished our inspection period and removed contingencies for him to tell us...let's close. I was shocked....he says he done with the pest work to be done as a pre-funding condition. I hope that we are headed in this direction....I am more use to sweating the loan up until funded. Great post and I think you are right on....have a beautiful day!

Sep 29, 2011 02:37 AM #5
Rainmaker
1,155,670
Paula McDonald, Ph.D.
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Thanks you all.  And Jeanean, that is GREAT news.  It is so good when we get one that is smooth.  Sadly for me, these have been far and few.  I have really had to help my clients not freak out when these goofy things happen.  I am finding that being a counselor is part of my job description right now.  Yikes.

Sep 29, 2011 02:41 AM #6
Ambassador
769,539
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Paula this is a twofold commentary.  First as my mother used to say "delay does not mean denial."  Each request sets the process back a bit but does not necessarily mean denial.

Secondly for those who don't get through the process because they've got some financial work to do, the denial is just a delay in the process.

Sep 29, 2011 02:43 AM #7
Rainmaker
1,155,670
Paula McDonald, Ph.D.
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Great points Charita.  I say never give up, just look for another methods and perhaps a new lender is the answer. 

Sep 29, 2011 04:05 AM #8
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Rainmaker
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Paula McDonald, Ph.D.

Granbury, TX 936-203-0279
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