In two similar type of sales, here in Honolulu, we had Different Lenders but got Different results with similar Scenarios.
Many times, a customer is shopping around with lenders to try and get the LOWEST RATE and TERMS, but fail to recognize or research the lender track record for processing a loan.
In the past two months, here's the situation: Without offending and without naming the particular lender or loan officer, in a nutshell, this is what happened.
Client Number 1: Purchase Contract on a condo, buyer puts a standard down payment, has excellent credit, no hang ups, no red flags and a FICO score above 780. We have scheduled a 60 day closing. This is NOT a Short Sale, but just a regular seller who lives on the island of Oahu. We go over the 60 day period and extend beyond the original Purchase Contract. When we approach 90 days, my buyer, who is able to do it, gets upset with the LENDER and tells them to get lost! Buyer pays cash and closes a few days later.
Client Number 2: Different lender, Similar situation to the buyer above, we insert a 60 day closing and expect this to drag on a LONG time beyond the sixty, since it is a Short Sale and requires lender approval. This buyer also has excellent credit and no red flags. Long story short, we got Short Sale approval within 3 weeks and are closing in 49 days, instead of 60. Buyer is thrilled!
Bottom Line: Without steering them, it's good to advise the client/customer to thoroughly research the lenders. Client Number 1, searched the newspapers for rates, checked out the Online lenders and asked friends, but failed check on the reputation of the lender. Client Number 2, did the same, but researched the reputation of the lender and whether the loan officer would take the 'extra mile'. There is a GREAT Vintage Movie from Turner Movie Classics, called the GO-GETTER, black and white 1937. Find it and Watch it!
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