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Charlotte Home Buyer Advice - Avoiding Heartbreak with The Right Vendors

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Real Estate Agent with Savvy + Company (704) 491-3310 228209

Charlotte Home Buyer Advice - Avoiding Heartbreak with The Right Vendors Who Understand Time Management

Frustrated in Charlotte!I have proclaimed many times that in order to keep your lending qualifications/licensure (including underwriters and processors), you should be required to buy/sell your home at least every 2 years.  That would insure the realization that there are critical deadlines that every single buyer and seller lay on the line when all parties to a transaction are trusted to get a job done on time

The absolute worst is when a seller is also Closing on the same day on their purchase.  I've had transactions 4-deep (seller-buyer-seller-buyer...) that are all Closing same-day.  If just ONE of the lending parties drops the ball, there are 8 families involved, movers involved and the agents who have to pick up the pieces and watch frustrated, heartbroken buyers and sellers frantically re-scheduling their lives.  It's a true nightmare so, I've learned to stay on top of them--especially the couple of weeks prior to Closing.  Sometimes it requires the skills of a magician to get the job done!

However, sometimes there is absolutely nothing that we, as real estate agents, can do about the delays--especially as listing agents.  We have no control over the buyer's lender with the exception of the ability to put pressure on them to get their jobs DONE!  We recently had a Closing for one of our sellers that had a 2-WEEK delay in Closing, toppling other Closings and causing unnecessary delays across several transactions.

In fact, the Title work was not even ordered until 4 days AFTER the scheduled Closing date!  Despite following up to ascertain that this had been ordered EARLIER in the process, it had, indeed, not been ordered upon receipt of the ratified Contract.  The underwriter's excuse?  "We've recently experienced a flu epidemic in our office and just could not get these files done!"  Really?  And, WHY wouldn't you communicate that the week or two prior to Closing so that all parties could make the necessary arrangements?  This 2-week delay caused an incredible amount of additional work on ALL agents, the attornies, the paralegals and, sadly, all buyers and sellers that this Closing hinged upon.  As though we don't have ENOUGH to do!

I recently had a conversation with an agent who I am working a cross-sale, explaining that our lender has been with me for quite some time--and expressed that if a lender is late just ONE time to Close, they're off my list!  He exclaimed, "Darn, you're tougher than me!  I cut them some slack the first time!"  For me, it's all about time management and if you're a lender, you'd BEST have excellent time management skills--there are a LOT of lives on the line here!  

Our Closing attorneys are to held to the same standards.  Federal guidelines require that buyers have the opportunity to review the HUD-1's 48 hours prior to Closing.  Why, when the package arrives a week prior to Closing, are we not seeing the statement until we get to the Closing table?  That is just not acceptable!  We all block our schedules for a 1-1.5 hours for each Closing.  When we arrive at the attorney's office and discover errors on the Closing Statement and have to go back to the lender for another approval, it delays EVERYONE!  Not only the agents and the next Closings in line but, the clients have typically scheduled to meet movers or have to return to work--they are also delayed.  Again, time management skills are most definitely needed to EFFICIENTLY do your job!

The Clock is TICKING!  Get to work!

Despite the fact that we provide our buyers a list of WELL-qualified and highly competitive lenders and attorneys, buyers sometimes still take the referral of friends and co-workers; I understand that, I really do.  HOWEVER, I have only had a couple of transactions in which these referrals proved to complete a timely, successful Closing.  When Closings do not occur ON TIME, buyers and sellers alike are left, literally HOMELESS, and the agents are the ones left to pick up the pieces through this miserable turn of events.  Oftentimes, these things are beyond our control but, at least I know that we have forewarned my buyers NOT to stray from our list!  We successfully Closed at least one transaction each week last year--we KNOW our business!  We KNOW who our buyers can trust to get the job done.  Buyers, PLEASE take the recommendation of your real estate agents!  We are in the 'trenches' day in and day out and have nothing at all to gain from sending you to qualified lenders and attorneys, other than keeping you from experiencing heartbreak and frustration!  

I can tell you that my list of vendors is PHENOMENAL!  The lenders get RIGHT to work on the package as soon as the ratified Contract is in-hand--if not before!  In fact, my lenders PRE-APPROVE our buyers rather than simply pre-qualifying them.  Then, when the Contract arrives, they're ordering Title work, appraisals and moving the file to underwriting--DAY 1 (NOT Day-28 of a 30-day transaction)!  The packages always arrive at the attorney's office EARLY and our recommended attorneys get the HUD-1 out EARLY as well.  Really, it IS knowing how to manage your time and files properly.  

As a lender or a real estate attorney/paralegal, wouldn't you rather get it done before the phone starts ringing repeatedly with everyone associated with the transaction on the other end of the line asking why you're late?  I'd MUCH rather get a 'THANKS for getting this done so efficiently!' than having to spend valuable time answering questions from angry parties to a transaction.  

If you're thinking of buying a home in Charlotte, let us help guide you through the process.  We'll provide you a list of lenders and attorneys that GET the job done!

Comments(15)

Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Debe, I hear you here. Fortunately our area lenders and closers take it really seriously. Many times they have processed the loan and have it ready to close days before the actual closing date. That is good news for everyone unless of course the closings are back to back and you must stick to the schedule.

Mar 17, 2013 03:21 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Debbie, Our lenders and attorneys are FABULOUS!  But, it's the ones that we've never even heard of who tend to do the worst jobs.  However, the lender who was 2 weeks late Closing STILL sends marketing 'crap' to me all the time--can you say, re-direct to TRASH?!!  The audacity!

Mar 17, 2013 03:36 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Every agent should have a list of trusted vendors - and every buyer should pay attention to those recommendations.

I had one couple who chose an out of area lender - and found out 3 hours prior to closing that they needed to come in with $2,500 more than expected. They were able to do it - but not everyone would have been able to close in those circumstances.

Mar 17, 2013 05:19 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Marte--I totally agree!  We had a prominent buyer recently who worked hand-in-hand with a commercial attorney who said that he would Close the transaction for our buyers.  As it happened, HIS office was responsible for a CONSIDERABLE delay AND then we were still dealing with issues that they created by not knowing how to Close a residential deal for OVER ONE MONTH later!  It was SUCH a huge debacle and my buyer later said to me, "Next time, I'm going to listen to your advice--ALL of it!!"

Mar 17, 2013 05:37 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Goodness.  I haven't experienced a late closing in 19 years.  It's just not something that has happened around here for many years.  I believe that the competition for title companies keeps them on their does.

Contracts for bank owned properties may offer incentive to close at their attorney but that's not a problem.  They always get the job done.

I do remember the bad old days through when loan commitments and scheduled closings were not so reliable.

Mar 17, 2013 06:02 AM
Ira Bodenstein
PNC Mortgage - Montclair, NJ
NMLS#: 445143

Nice post.  Certainly having a complete loan application when the loan is submitted is key, meaning income, assets and a valid contract executed by all parties.  When I submit a loan the file goes straight to underwriting. At PNC the anticipated closing dated moves the file through the system. The key is good communication and cooperation between buyer, lender, Realtor and attorney.  If we all work together we are all ready to close on time.

 

Mar 17, 2013 06:30 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Lenn,  You are SO fortunate!  We don't experience them when OUR vendors do the job but, when others are brought into the transaction mix--it's a MESS!

Ira, That is so true!  It's all about communication and our lenders do a fabulous job of making sure that we're all on the same page.  Others...not so much!

Mar 17, 2013 06:51 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

A loan officer that drops the ball is the last time I recommend them.  We all make mistakes however, as you pointed out, it can cause a domino affect which is terrible.

Mar 17, 2013 07:03 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Not just lenders and paralegals... although they are critical. I'd add home inspectors, appraisers, contractors, etc. to the list.

Mar 17, 2013 07:42 AM
Kim & Kristine Halverson
Sotheby's & Knipe ERA - Bend, OR
Sisters, Realtors

Nail bitter closings for sure!  Kristine

Mar 17, 2013 11:42 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Debe, I feel like a Bird Dog getting closings to the table. If I don't stay on top of everybody, balls will be dropped and we will not close on time. It seems that punctuality in the lending world is passe. Sharon

Mar 17, 2013 01:10 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Debe - It's some important that the loan be done on time, especially with the closings lined up or with short sales.

Mar 17, 2013 02:34 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Debe, you're right about not having much control over the buyer's lender. On one of my recent transactions, the buyer's lender was non responsive and it cause an unnecessary delay. A second lender was also non responsive causing a second delay. Finally a third lender came through and we were able to close. My sellers were very frustrated throughout the whole transaction.

Mar 17, 2013 10:51 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Paula, the domino effect is unbearable for both buyers and sellers.  I'm with you--late Closing (just ONCE) = removal from my vendor list (OR never being on it!)

Nina, I haven't had the experience with the others that was negative.  It seems that most are finding good inspectors, contractors, etc. on their own, should they stray from the list.  We've been very lucky with regards to those!

Kristine, for SURE!

Sharon, And, I don't understand that...they KNOW how long they have to get their job done from the beginning.  IF they tell me that the date is impossible, we will tweak it--but, they need to tell us UP FRONT!  Right out of the gate, I don't have a problem with it but, to wait until the week before Closing to even LOOK at a file is just downright unacceptable!

Christine, Exactly!  I just don't understand their passe mentality, as Sharon said.  It's absolutely maddening.  Our lenders are on top of it before we even GO to Contract!

Michael, And, sometimes the sellers just don't understand how little control we as listing agents have.  We push, bitch, moan and complain but, we can't yank the buyers away from 'their' lenders!  MANY times their personal friends or friends of friends or family so, they just won't budge when you try to tell them they should!

 

Mar 18, 2013 12:59 AM
Margaret Goss
@Properties - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

It's a bad feeling when a vendor you recommend lets your client down.  I had it happen twice this year, both times with attorneys.  I thought I would give me a 2nd chance, but now I'm not so sure.

Mar 18, 2013 02:42 AM