It seems lately there is a huge disconnect between lenders and sales contracts. I wonder sometimes why the lender even asks for a copy of the contract, as it seems to be irrelevant to the transaction. The last two closings I have had on condos for my listings (I must emphasize listings here because this has not happened to one of my buyers with a lender I recommend...yet), they have not made the closing date with 45 days to get it done. And these are not complicated loans. The buyers are well qualified, salaried employees, standard conventional or FHA loans. But they were both national lenders, not local. And this is not something that has happened often until lately, in my experience.
I have followed up frequently with the loan officers, and asked if things are moving along and been given affirmative answers both times. Then sure enough, a day or so before closing, lender calls with "we are not going to make it." The explanation is always vague, as if the loan officer doesn't even know exactly why. Both times, it's been condos, both times it's been "something is missing in the condo questionnaire" but no specifics.
Again, the loan originators I recommend to my clients don't do this, and if closing is delayed, it's usually done by COB on the contract date and I am given a definite reason why.
So, maybe some lenders should suggest that we start writing "windows" instead of "dates" in our contracts. People make plans around the DATE of SETTLEMENT. They switch utilities, they hire movers, they line up contractors etc.
I do wonder why this has not happend with the loan officers I use. I say it is because they are 1) Local and concerned about their reputation 2) I refer them and they want more referrals 3) They are just better at their jobs and their companies are organized and respect the closing dates.
When closing dates are missed, it causes anxiety all around. So if you are a lender, and you know your organization is not making closing dates...tell the agents up front. Prepare us for a date range rather than a date.
I'd love to hear if other agents and buyers/sellers around the country are experiencing this too. Is it happening all the time? Is it just non-local lenders? Or is this just the new standard we should start preparing our clients for? "Approximate closing dates"
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