My 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:
- Do you gather all the needed documentation prior to underwriting or do you wait for underwriting to request what is needed?
- What is your responsibility to the time frames in the purchase contract?
- 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.