Why using the WRONG lender can be PAINFULL!

scottsent August 6th, 2008

Would you ENJOY Losing

 

 

 

Your Deposit and Dream

 

 

 

Home?

 

Choosing the right lender can be difficult. Most people don’t have a clue as to who is good and who is bad.

The only thing you can do is find someone you know and trust, and get a referral for a lender they know and trust.

As both a Realtor & Mortgage Broker, I take care of my clients from start to finish.

But I would rather send you to another Mortgage Broker I know, than have you risk the entire transaction with someone you choose who is untested.

Here is an example of a bad experience one of my clients had with a well known, national bank on an FHA loan:

  • 6 Weeks late closing escrow
  • Multiple Seller Cancellation Threats
  • Risk of losing home and deposit
  • Already invested 3 months trying to buy home, on top of ’standard’ 45 day close period
    • Banks who own foreclosed properties are notoriously slow
  • Change in loan requirements very late in the game
  • Big Bank FHA lender he was using quoted 45 days to close, found out later we could have used a local Mortgage broker/banker who could close in 15 days!
  • Loan Originator & Manager did not communicate with client or agents
  • Loan Originator would not release buyer source docs to take loan to another lender (their competitor)
  • Hundreds of phone calls & emails
  • STRESS!!!

Can you believe this happened with a NATIONAL Bank! My client chose the loan originator because he had a positive experience with her on a conventional loan on his other home. FHA loans are different, and in this case past performance was NOT indicative of future results.

Why am I telling you this? To CONVINCE you that the lender is THE most important aspect of your home purchase transaction!!! No loan, NO home!!! Simple as that. Not to mention the unnecessary stress such a rollercoaster involves.

I will tell you the loan requirements up front. If for any reason I cannot do your loan or there is a problem with a wholesale lender we use, I will immediately REFER you to someone who can (such as specialized lenders, i.e. FHA, CAL VET, VA, or other specialized loans).

The reason I’d rather refer you to another lender is simple - I won’t get paid at all if your loan does not fund. So, I have a vested interest in making sure it funds. However, a big part of the process is the pre-approval and running a direct underwriting report. This will tell you if you REALLY can obtain a loan.

Some things to be cautious about after you get pre-approved:

  1. Don’t get into debt (buy a car, boat, etc.)
  2. Don’t change jobs without first consulting with the lender how the change will affect your pre-approval.
  3. Stay current on your existing debts (no late payments!)
  4. Work the same number of hours if you are an hourly employee - maintain the same average income.
  5. Tell your lender immediately of any change in your financial situation.

I hope you find this information useful and are now better prepared to source the best lender who will take care of your needs.



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