Your lender can make or break your deal
Want your deal to die quickly? Pick a bad lender.
Actually quickly is not really accurate. Pick the wrong lender and your deal will die a long, slow, painful death.
Probably the most popular topic I seem to blog about is the importance of of picking a great lending partner. A great lender can make things go smoothly or they can literally kill a deal. I think a great lender may be even more important than a great real estate agent.
Talk to your real estate professional when you are thinking of lenders. We make no money or have no benefit of recommending one lender over another. What we will do is recommend lenders we know who can get deals closed in a reasonable timeframe.
Here is a recent story that we are going through right now on one of our East Valley short sale listings. We represent the Seller in this case.
We received an offer and quickly got an approval letter on the short sale listing in early August. The short sale servicing bank gave us until late September to get the deal done, which should have been plenty of time.
In mid-September I was trying to get an update from BBVA Compass, the Buyer’s lender of choice. No matter how hard I tried, trying to get an update from them was pretty much a waste of time. Good luck getting anyone to call you back.
When we got to three days left before closing and we still did not have an estimated time from Compass we issued a CURE notice to the Buyer, requiring them to live up to their end of the contract. Which in this case meant getting docs to title.
We finally got a response from Compass saying they had a normal close time of 60 days, which almost made me fall out of my seat. They promised they were going to expedite this and if we could get another postponement on the foreclosure date (our second one) they could get the deal done in two weeks, if not sooner.
After begging and pleading the short sale servicer granted another extension for two weeks.
We were told right after we received the extension that the file was heading into underwriting and we should be getting docs before long.
Fast forward two weeks and guess what. You got it, no docs, no communications, no nothing. Now the Buyers are faced with not getting the house they want and our Seller’s are faced with a quickly closing in foreclosure date.
When it comes time to getting a loan closed make sure you use a great lender. Make sure your lender has in-house underwriting, in-house doc drawing and has the ability to table fund. If they don’t have these things they will tell you they are not important. They are!
Short sales are getting harder, not easier. Banks are quicker to foreclose than they have in the past. If you are serious about getting a house, make sure you pick a lender who can get a deal done in under 30 days. There are plenty of them out there. I personally would stay away from any big bank and look more towards mortgage brokers.
I would rather pay a little more in loan costs than to risk losing the house of my dreams and maybe my earnest money too because a lender who may save me a couple hundred bucks in closing costs cannot deliver a loan in a reasonable timeframe.
If you need a list of good lenders in Chandler and the East Valley email or call me and I will provide some names of lenders who have delivered for me time and time again.
Photo Credit cdruzin on Flickr