Do you ever get the feeling the lender is lying to you? I am reposting this blog because nothing is more important than communicating to our buyers that a GOOD lender is key...someone they did not just find on the internet but someone their realtor knows and trusts. It can save them money and grief... and it can save them the house. ALWAYS ask your realtor for tried and true lender who they KNOW will stay in touch and have the clients in mind, not just their fee.
Do You Ever Get the Feeling the Lender is Lying to You? My buyer contracted with terms in the sales contract to get a conventional loan. The buyer has great credit scores, assets, ample retirement income and is putting 10% down.
I get a call from the loan processor saying that she needs the FHA Loan Addendum. Now wait a minute. This buyer is getting a conventional loan so you don't need that. She looks a little deeper into the file and tells me that the loan officer switched it to FHA and she had the FHA appraisal back in her hand.
Now of course the loan officer is not available because he is on Vacation and won't be back for another week. She will be talking with him on the phone and ask him about it. Later I receive an email and it says that she spoke with him and it is conventional according to him and he will straighten it out when he returns from Vacation. He owns his own company and can go and come as he pleases. I did not direct or suggest this lender. My buyer had been referred by one of his children.
He's back and the story changes again. Now the lender says he can't talk with me even though my buyer has given them permission to discuss everything. That's okay I suppose because the lender doesn't call my buyer back either. So the so called go-between, the processor calls and says that they have looked over the "records" and it is less expensive for the buyer to go FHA than Conventional and the payment is less on FHA.
I have had several similar scenario's and since FHA hiked the MIP, conventional has always saved my buyers money. In one situation it was almost $200 per month. Am I missing something here? Do You Ever Get the Feeling the Lender is Lying to You?
I do and now we are within a week of closing and to pursue this without proof will delay the closing. I have seen no records and neither has my buyer. My buyer does not want to delay the closing if the payment is the same or lower. He has left town and won't return until a day before closing. I just can't get a grip of this.
I need some help so here's what I need. My lending friends out there, would you work some general numbers and let me know if I am off my rocker or is the lender lying to me?
Sales Price $149,500- Buyer credit 720- Buyer is putting 10% of sales price down- Seller is paying all closing costs. Very qualified buyer. Ratios are low and fit into conventional guidelines.
FHA or Conventional, which type loan is better for this buyer? Generalities are okay. I just need another read on this.
I will leave it alone if I am wrong. Frankly I will do whatever my buyer wants to do but I just don't feel right about this one.
RESOLUTION....Buyer has decided to stay with lender even knowing that his payment could have been less. He said next time he would not go to a lender on his own but ask for my advice. They regret their decision with choosing this lender but do not want to hold up the closing since they are camped out with family and need to get their households out of storage. He appreciated knowing the correct information but will accept the FHA loan as it stands. He really appreciates me looking out for his interest and checking out things for him.
"The Real Debbie Reynolds" at DebbieReynolds.net
Prudential Professionals Realty, 2503 Wilma Rudolph Blvd., Clarksville, TN 37040
931-920-6730 (office) 931-320-6730 (cell)