Every realtor out there probably has at least one nightmare story about an internet lender, I have one this week a realtor called me and asked for my help with a client that was supposed to close on Thursday morning I get the call at 5:30 pm on my way home Wednesday night, after calling the client and finding out that he worked all day the next day and that he could only talk in the evening I turned around went back to the office to get this guy prequalified.
What created this situation? He had applied on line with an internet lender who in this changing market strung him along up until the night before closing never telling him that the 100% program that he had applied for was no longer available. Instead of solving the situation the internet lender was very negligent. I am not saying all internet lenders are bad because hey I am on the internet too! However my advice to all realtors out there is if you have a client going through the net make sure you get some kind of closing commitment and that the closing time is able to be met. A big red flag for me is if the first thing the lender does is take a credit card number to cover the fees, first I never would advise giving your credit card number out, second most lenders are willing to look at prequalifying a buyer without collecting a credit card number.
After reviewing the situation we were able to come up with 2 100% options that were available to the client a VA loan or a rural development loan, we are closing at the end of this month after I have called in a couple of favors from an underwriter an account rep and my appraiser which had to be selected by the VA since the client opted to go VA.
My advice if you have a client that already is getting a loan off of the internet ask them if they would feel comfortable getting a second opinion if they have not already shopped IT NEVER hurts to compare and shop, I mean we are talking about buying a home and hundreds of thousands of dollars on a home, many folks dig deep into consumer reports and compare at least 2 or 3 big box stores before buying a major household appliance so why not do the same with the home loan, competition is healthy in this market and it is in no way insulting, I am always glad when a client of mine is shopping around because I know the service I offer and the price I have for the service is very very competitive and you might just avoid having to make that night before closing emergency call to a lender for your client.