Not All Lenders are Created Equal. Here's Looking at You BofA

By
Real Estate Broker/Owner with Home Jane Realty BRE# 01439865

If you are not a cash buyer then your first step when buying a home is  to find a good lender. You may already be a pro at home buying and have a good go-to loan broker, but if not you will need to find someone who will make the process run smoothly and not run the risk of losing the home.    

My buyers client recently closed on a deal where both buyers and sellers were reasonable and everything moved smoothly towards the contract signing and ultimately agreement on repairs. That done one would think that things would have gone without a hitch towards closing. What we didn't anticipate was the fact that the bank where the buyers have been clients for many years and where they have numerous accounts would not have a clue how to handle a transaction of this size and understand how to deal with time-sensitive requirements.

Bank of America might be a great source for smaller loans, under $1 million, but they do not seem to be set up for larger ones, such as ours which was $1.6M with 50% down on a $3.2M homes. Seems like a no-brainer right!  Wrong. No one seemed to know what the next person was doing. Nor did anyone seem to grasp the urgency of sticking to deadlines, all of which were dropped. The appraisal was ordered too late so that the appraiser only went out after the deadline for removing the appraisal contingency had passed. No effort was made to try and find an appraiser who knew the area, and the comparable homes used for the appraisal were all incorrect. The buyers were constantly being asked to supply paperwork which had already been submitted and there always seemed to be one more item they needed. The buyers were given dates that the bank did not stick to, and they almost lost the house. There was no one point of contact who could be relied on and misinformation was constantly passed on. Fortunately the sellers stuck with the buyers, and the deal closed.

Ask questions from your lender. Find out what kinds of loans they have made in the past. Make sure your real estate agent is involved because they might be able to spot the red flags. Using a loan broker rather than a commercial bank is a good way to go as generally they know the best sources for a particular type of loan, understand the urgency of the escrow process and know whom to put pressure to make things happen.

Being loyal and sticking with who you know is a good thing, but not if it loses you your ultimate goal.

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Show All Comments
Rainmaker
3,681,958
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Jane - you're right not all lenders are created equal and not all loan officers/representatives are either.  Due diligence seems to have a place in so many aspects of a real estate transaction.  Although, it was a bit of a bumpy ride, it is good that you held the transaction and all involved together for an eventual close.  Congratulations.  

Dec 16, 2019 06:45 AM #1
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Michael Jacobs Thank you.  I have never seen such incompetence. They nearly cost the buyers the house.

Dec 16, 2019 12:25 PM #2
Ambassador
4,255,901
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

What a mess that was, Jane. Glad it all worked out despite the aggravation! This is why buyers needs to work with those lenders we know and trust based on their past performance. It just shouldn't be all that difficult.

Jeff

Jan 09, 2020 05:57 PM #3
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Jeff Dowler, CRS It was absolutely mind boggling. I never thought it would get done. And then I got an email from the lender thanking me for the business and hoping I would think of them next time.

Jan 09, 2020 07:47 PM #4
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

OMG - You had that experience, too? I am so sorry, Jane. Last year they nearly upended 2 of my deals!

Jan 15, 2020 03:54 PM #5
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Forgot to mention - Citibank caused a lot of headaches last year also. It was not about qualifications, but about lack of communication and missed deadlines. What is going on with lenders???

Jan 15, 2020 03:56 PM #6
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gwen Banta I really don't think B of A are equipped for anything but the smallest loans. It really was like working in the Twilight Zone. Just doing a deal with Union Bank. Night and day.

Jan 21, 2020 04:46 PM #7
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Jane, I went with Union Bank for my own mortgage and I have been very pleased.

Jan 21, 2020 05:01 PM #8
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Jane, have you noticed that our local mortgage brokers are jumping around a lot? What's going on out there?

Jan 27, 2020 11:25 AM #9
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Another thought - I have had great success with: 

NBKC Bank

Bank & Credit Union
They handle a lot of Costco loans and have great service and great rates.
Jan 27, 2020 11:26 AM #10
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gwen Banta Good to know. Thanks.

Jan 27, 2020 12:56 PM #11
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

👍🏻

Jan 27, 2020 01:03 PM #12
Rainmaker
1,565,794
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I encourage buyers to use a mortgage broker instead of a bank.  Banks are just not really in the mortgage business, it only looks that way.

Feb 15, 2020 01:11 AM #13
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Georgie Hunter R(S) 58089 You are right. You end up dealing with people who have no idea how to get the job done.

Feb 19, 2020 02:03 PM #14
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Jane, I am hearing great things about First Republican. Are you getting any feedback on them?

Mar 02, 2020 01:44 PM #15
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Oh, and apparently PNC is offering great rates and (I am told) great service for re-fi's.

Mar 02, 2020 01:45 PM #16
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gwen Banta Good to know. No, I have not heard anything about either but will keep them in mind. Do we no longer use brokers?

Mar 02, 2020 02:54 PM #17
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

I'll probably get a lot of flack for my response, but don't shoot the messenger, folks. A broker friend of mine told me on Saturday that the banks are holding the best rates and selling their products at a higher premium to brokers. Maybe some brokers will weigh in here.

Mar 02, 2020 03:09 PM #18
Rainmaker
1,179,952
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gwen Banta Interesting. That would be a good post for you to put up.

 

Mar 08, 2020 02:14 PM #19
Rainmaker
427,660
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Jane, I barely have time to spell "lender games," but maybe one day...

Mar 08, 2020 02:17 PM #20
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Rainmaker
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Jane Peters

Los Angeles real estate concierge services
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