Buyers Choose Their Lenders....Don't They ?
I definitely agree with this idea. People need to be informed any way they can. Hopefully everyone will read this and start using the advice with all of their clients.
Buyers choose lenders because....that is where they do their banking, where they got their last mortgage, where they were promised the best rate, the lender that has no closing costs...their aunt, cousin, neighbor works there....reasons are many and varied. Sometimes it is blind loyalty rather than the logic of less cost that drives the choice...people are people and logic does not always prevail.
In our position as listing agents....we have the duty to guide and advise our Sellers....we require a letter from the bank with each offer...a specific letter that spells out the amount of the loan that the buyer is eligible to borrow and whether or not a home sale is required to advance that mortgage. The rate is included and it is signed with the contact information of the loan officer.
Choose a reason....insufficient number of appraisers, slow underwriting staff...etc. ....the processing of a mortgage is not done in a minute.....and what is worse....sometimes not done in the time that the contract specifies that the loan be completed. Such disasterous results for not closing on time can mean....the window of approval for a short sale has slammed shut, the Sellers depending on the Buyers to close lose their hosue.....and this can have a domino effect with several transactions....not pretty.
When we find a situation that endangers a closing....we seek preventative remedies that are legally sanctioned to safeguard the timliness of the closing and insure, as best we can, that everyone lives "happily ever after."
Our listings in MLS clearly state that offers must be accompanied by a pre-approval from a locally recognized lender. Experience takes recognition one step further...it is a part of our listing presentation and the service we provide to Sellers. If a lender has a history/reputation for not closing loans on time...we advise our Selllers who can....and do ....in an amendment....require a different lender be chosen for this transaction. We had our lawyers verify that this condition of the contract can be something that the Seller can specify. We do NOT specify particular lenders....we will supply a list if asked by the buyer or the buyer's agent.
The result of this policy ? Smooth closings in a timely manner. Will it change the world of lending ? Probably not....it will keep our transactions closing promptly....try it....done on a larger scale, we would all be amazed at what changes could take place in markets everywhere. Amen and Women.
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