|Sellers: Request Your Buyers Borrow Locally to Discourage Bad News.|
Shocking but true. Some lenders really don't care a hoot about whether or not your most significant financial transaction of the decade happens. Sure the top brass and front-line sales folks might care, but they are frequently either removed or powerless when it comes to turning the gears of the loan machine. A Buyer may have met a wonderful rep for a large, National lender, but when it comes time to assembling, acquiring and interpreting the necessary documents to process the loan on time, it's a disinterested desk clerk in some far-flung state who can derail, delay or destroy based on the pettiest criteria, lack of attention to detail or ignorance of local conditions.. Oftentimes, the far-flung back-room folks are more concerned about their Facebook status than in taking the time to understand the nuances of a nameless, faceless buyer time zones away. Shocking!
I recently had a low-level administrator demand a personal letter from the President of a multinational company confirming that the Buyer was indeed a Vice President in the corporation - even though employment documentation was boldly evident. Excuse me, Mr. Obama, could you please confirm Mr. Biden is VP or else we won't move his loan along.
A lending organization without a crisp and focused administrative group can fail to get money to the table on time, which can leave you, the Seller, up the creek without a paddle trying to settle on your next home. Even if the loan does come through on the day needed, both Buyer and Seller are cradling bleeding ulcers at the settlement table after a callous lender or its disengaged staff has made everyone miserable.
Advice to Sellers- when reviewing an offer or offers on your house, pay careful attention to the Buyers' source of funds. You can reject an offer or insist that a Buyer employ a lender, preferably a local one with ties to our community, that has a reputation for drama-free performance. These lenders do exist and are generally just as competitive as the lending companies with huge marketing budgets.In the agreement of sale Mortgage Contingency section, there is a blank slot where a seller can insist the buyer state and commit to a particular lender, and not opt for BllyBobsBahama Internet Bank
With lenders, whether you are a Seller or Buyer, bigger is not necessarily better and I recommend well-regarded local lenders every time. As a Buyer, you may save $4.38 per month on interest payments because you got a slightly better interest rate from BillyBob, but you'll risk giving it back in ulcer meds and treatments. Worse yet, a smart Seller will reject your offer in favour of a Buyer with a quality, recognized local lender. It happens all the time.
Disclaimer- These views expressed are those of R5Realty.com and are not in anyway endorsed or meant to represent the views of Prudential Fox & Roach Realtors or any of its affiliated companies, including Trident Home Mortgage.