Picking the “right” lender when purchasing a home
It’s just as important as ever when buying a new home to pick the right lender. Don’t think it makes a difference? Guess again. I have several examples of situations that have created very stressful situations for both buyers and sellers.
Think your “relationship” with that “big bank” ( pick your favorite ) is useful when the S*** hit’s the fan? Fat chance.
I’ll give you a few brief examples here, and if you want more clarification on how to proceed, or just want to talk more about how to pick a lender that will make sure your transaction goes smoothly, give me a call.
303-520-0070
Call, text, or email me today! …
I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.
Case #1:
Buyer ignored my advice to choose a local lender due to the supposed relationship with large national bank. That relationship meant nothing.
Here’s why:
When we had blown through several deadlines, including one important; the Appraisal deadline (it was actually the day of the deadline), the lender in a rather cavalier fashion said they were sorry, but they couldn’t talk to anyone to get us any information about when we’d get the appraisal information… “so sorry” was all we got. Bad answer.
Yes, though, we got it done.
Case # 2:
Buyer chose a mortgage broker from a previous experience when they had refinanced. I had suggested several choices for local lenders that offered comparable rates and terms, but the buyers chose to go with the broker. Whomever the broker chose to fund the loan didn’t really have much at stake in terms of building a relationship, and had no concern, nor knowledge of the local market. When the appraisal came in over $70,000 low, again the answer was a proverbial shrug, and “sorry, we can’t fund the loan”. Lot’s of scrambling and a few weeks delay, but we got it closed with a local lender, a local appraiser, and in the end, it all worked out well.
There was no reason for this mess, and the ‘cost’ associated with the delays, extra appraisals, and hassle factor I’m sure were both avoidable and unnecessary.
Case # 3:
Seller is under contract and due to close. I’m actually driving to the closing when I get the call that the buyer of my seller’s home hasn’t closed on their home they were selling. Not a huge problem, as the buyer didn’t need to close that sale to make the purchase.
Problem was the ‘big lender’, a large firm that operates in more than one state was behind on their paperwork, and didn’t bother to let the client know that they hadn’t “had time” to send the figures over to title yet for the sale of the first home. Domino effect.
Even if we chose to rework the loan and closing docs to close the purchase of my seller’s home without waiting for this buyer’s other home to close, it would take a few days. So, you guessed it, no closing on our scheduled closing date and time. Tens of phone calls, texts, emails, and rescheduling later, and it all gets re-worked and closes days late.
Yes, we got it done, but why the hassle factor? Because many lenders, loan officers, appraisers, and underwriters have a non-caring cavalier attitude about the terms of the contract, the dates and deadlines, and general bad attitude about client RETENTION, and client LOYALTY. They just don’t care.
So the next time your agent recommends a lender, an inspector, a roofer, or even an attorney or CPA… listen to their advice. A big part of our profession is hand-holding transactions, guiding clients through the process, and through a vast network of reliable people referring you to the best possible professionals that you can work with. It’s not a money-making angle. It’s an effort to make sure that you get the smoothest transaction possible, before, during and after you sell or buy your home.
–Zachary Epps, GRI, ABR, REALTOR®, Eco-Broker®, full-time RE/MAX professional,
and author of the
Boulder Real Estate and Neighborhood Guide,
The Boulder Condo Guide, and The Home Buyer’s Handbook.
Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.
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