Don't you love how professionals in the real estate business say one thing and then do another? Or how you give someone business on a silver platter and they turn around and give you the shaft? A big problem that realtors and buyers are having stems from using the wrong banks to financing a home purchase. Here are several tips to help you avoid these banks.
Tip Number 1: Use local lenders with in-house underwriters! If you're in Florida and your loan officer has to get approval from an underwriter in Georgia, then don't use that bank! I have seen out-of-town underwriters deny loans for unfair reasons, lose files completely, not respond to their loan officers, and even redlining because they're not familiar with the area in which you are buying!
Tip Number 2: Fast communication is key! The lender, title company, realtors, and clients should all be able to communicate very quickly and easily without hassle. This means that you pick up the phone or send an email and have your answer same-day. Bank of America has the worst communication I've ever seen! When you call the loan officer, you have to go through at least 5 different prompts and robo answering machines until you can even leave a message; and then you don't even get a call back! If you have problems reaching anyone at the bank you are using, then please switch banks as soon as possible!
Tip Number 3: Your lender should always be moving forward. This means that the lender should contact the title company or attorney to give them their requirements, should meet with the buyer to sign loan documents, and should try and order the appraisal all within 2 weeks of being under contract. I had a deal with Chase where the title company wasn't contacted and no request for title was sent until 45 days after going under contract! Needless to say, the deal needed 2 extensions to close and the buyer almost lost their deposit on 3 separate occasions! They were not happy with Chase!
Tip Number 4: Go with familiar banks that others have had success using! If you ask several realtors, in my town of Port St. Lucie Florida, who they use to finance their buyers, you start to here the same banks recommended time after time. Many realtors are also very happy to tell you about the banks that they don't recommend and would never refer business to.
Tip Number 5: Never assume your bank is doing what they are suppose to! From my experience as a realtor in Port St. Lucie Florida, and from 2007 to present; I have seen 2 out of every 10 banks have outstanding service and perform as promised. The other 80% have failed to perform on time, over-promised and under-delivered, put their buyers in awful situations that lost their deposits, and have even lied outright to other parties in the transaction! Micro-managing is never good for employees, but is very necessary for real estate transactions.
Final Tip: Be Prepared! Do your research, read reviews, talk to others, and ask your bank questions to find the information highlighted in this article! Remember, the banks are not doing you a favor by giving you a loan! You are giving them the right to have you as a client and make money! MAKE SURE THEY EARN IT!
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