'No Sense of Urgency'

Real Estate Broker/Owner with SD Home Source Realty BRE #01363537

No Sense of UrgencyMy home buyer, frustrated beyond measure with the person underwriting his mortgage, exclaimed today “she has no sense of urgency.’

We have already asked the seller for a 5 day extension on the close date. Now, we have had to sign an agreement to pay the seller $100 a day for every additional day that we are late to close.

Home buyers often gravitate towards mortgage lenders who give them the answers they want to hear, and offer the lowest interest rates. Before we wrote an offer, I had this buyer speak to my preferred lender. She would not write a pre-approval letter without getting all the documentation needed on the very same issue that is holding us up now.

Sure it’s human nature to use the lender that says ‘no problem.’ I hear it every day. Yet it is precisely times like this where I am reminded that it’s best to cross all your ‘t’s and dot all your ‘i’s before writing a home offer.

Mortgages delay the closing of escrows every day of the week. Sometimes, this is due to unexpected issues, but most of the time it’s due to a lack of foresight and planning. When shopping for a mortgage lender, here are some additional questions you might pose in addition to interest rates and costs:

  1.   Do you gather all the needed documentation prior to underwriting or do you wait for underwriting to request what is needed?
  2.  What is your responsibility to the time frames in the purchase contract?
  3. Will you contribute towards late fees if the loan delays a timely close?


By asking these questions you will gain insight about the lender’s sense of urgency and the value placed on the time frames of your escrow period.

Comments (6)

Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

This crap goes on all the time, situations like this make all of us look bad. I apologize for those in my industry that gives poor service.

Jun 03, 2015 10:10 AM
Cindy Davis
SD Home Source Realty - San Diego, CA

I know it goes on all the time Joe Petrowsky. You certainly owe no one an apology. This type of thing however has taught me to be very skeptical about lenders.

Jun 03, 2015 10:17 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Based on your blog and comment, I'm going write a blog about this topic and will include part of your comment, hope you don't mind, but won't mention your name.

Thank you for sharing your thoughts.

Jun 04, 2015 07:10 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Cindy Davis ... I agree with Joe Petrowsky.  It's unfortunate, but true ... bad lenders spoil the reputation of the lending industry as a whole ... and make  it harder for the reputable, caring lenders to do business.  I understand your feelings ... but I hope you don't lump us all together.  AR has many Lenders that do our industry proud and do right by their clients ...  


Jun 07, 2015 07:30 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

My Lender is rarely the reason for a delay in closing a transaction.  If anything it is the Appraiser that takes a couple weeks to get to and then write his report up.

Jun 09, 2015 09:47 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Perhaps if that penalty came out of the paycheck of the underwriter there would be a 'sense of urgency'.

Jun 14, 2015 12:22 PM