Janet - You must have been thinking the same as me.  I noticed your post as I was just writing about similar things.  All I can say is a resounding, "AMEN!"

Jason: Well, you know I have this crazy policy of accepting blame when anything goes wrong, even if it is not my fault. It seems to make things move faster, and I am only upset if I know it was REALLY my fault.

But in this age of listing agents who handle hundreds of bank owned properties, I find not having a real seller with a real listing agent, slows things down.

I just endured being verbally beat up by a listing agent who had no idea what was going on or why we would be a few days late .....because of stupid bank selling the property and stupid title company who handles too many foreclosures and is accountable only to big stupid bank (who does not care.)

Please let there be a day (soon) when these foreclosures just GO AWAY.

Janet, your post has some truly great information.  I've worked hard to facilitate the lender's need for information and performance.  I've spoken with my buyers and have worked hard to impress upon them that time is of the essence; that they need to submit required documentation and information in a timely manner.  I have communicated with the lender to learn what they still needed and then interceded to see that their needs are met.   Your post gives me additional information that will help me work more effectively with everyone involved int he closing process.

Jon: You must be a dream to work with. It is so helpful to have an agent like you who works to help on the front end, instead of simply appearing at the end.

You bring up some good points that I did not: mainly that the Realtor is in a very good position to prod the client into action. When they hear this from both mortgage person and Realtor, chances of it sinking in soar.

Hey Janet.......All agents should read this post and title officers too.  It takes all of us working as a team to close the transactions on time or even close them at all.  Every person involved is an important piece of the puzzle and it should not be the mentality that..."It is not my job, it is so and so's."  Instead we all should make an effort to keep up on whatever needs to be taken care of.  People make mistakes, we are only human.  So if we are all watching out for each other the less problems we will have in the end.  It is so simple.  Call me if you still need to chat.

I think with the recent drop in Real Estate agents alot of things are going to change. The miss communication,unprofessionalism and etc.. So we should be able to close on time with fewer people in candy jar.

To the above commentor: I in no way meant to imply that Realtors are the reason loans close late. That is not true.

It is much more a comment on the fact loans take longer to close because of tougher guidelines and so many REO sellers.

Realtors can help by understanding this.

Janet - I see this is another Featured Post.  Congrats!  Great information.

I have learned from experience its important that everyone involved with a deal work together. Set a common goal and stick to it.

Great advice!

11.  Pick a mortgage broker who does their job and doesn't blame the victim.

Janet, I always work closely with the mortgage broker.  However, I have run into mortgage brokers in the past that just did not communicate or return phone calls to the realtor, they were not my "mortgage broker of choice"

I agree that we all have to work together. Absolutely. But in my neck of the woods lately, it's been the lender who refuses to team up with the realtor. That's why I like our in-house lenders so well. Easier access and communication.

Can you move to Ohio?

Janet, oh so true.  We are all on a team to try to get the transaction closed in a timely maner with a minimum of hassel both for the customer and for us. aj

I just had the great experience of working with a mortgage broker that was a really great communicator.  It was an absolute pleasure to work as a team with our clients in bringing about a successful close. 

It doesn't matter which side it is that fails, when one side does, so may the transaction.  You've given me a couple of things to consider here that I don't think I would have had you not clued me in.  Well done, Janet.

Janet, this post coupled with Jason's are truly just what we need for our clients in this market.  EXCELLENT post!

Great post, Janet. You have summed it up really well. I am a sticker for follow-up and staying in touch with my buyers' lender.  Sometimes you may have to go the extra mile, just to help your buyers close on time, and it's worth it.

I try to work closely with the loan officer and have many times called to find out specifics on performance before I write an offer.

However, I'm doing a deal now where the LO called me a pain in the a$$ and said he didn't need me. 

This same LO ordered the appraisal yesterday for a closing tomorrow (despite me having asked since the 25th that the appraisal please be ordered), didn't order title-work (which yes I should have caught sooner), and setup an appointment to meet my buyer and I for a tele-conference to sign papers and then didn't answer his phone for our appointed time!

i'll never use him again.  But it will make me a little gun-shy in volunteering help to other unknown lenders, though my usual trustworthy ones love it.

This was a wonderfully written post. I have copied it and sent the link to every single mortgage professional in my inbox. WELL DONE!!!

I'd offer #12 on this one : Abide by the purchase sales contract. 

For example, if the contract says that buyer owes $10,000 in earnest money, collect the earnest money from the buyer and deposit it.  Save the deposit receipt and the cancelled check.

Underwriters like to know that the formally agreed-upon contract is being followed to the letter.

You should create a separate page on your website dedicated to this topic!

Janet - THANK YOU from the lender side!  Some Agents think that because lending volume is low, we have more time and things should move quicker.  Yes, it is slower than before, but loans are looked at three or four times before it goes to doc.  I enjoy working with Agents that wants to works together, not work for!

Wells Fargo has a program that actually garaurantees on-time closing.  If we fail to meet the COE date, we will donate the first payment to a charity of the client's choice.  Of course, certain restrictions apply...

Thank you again,

kt

Janet, It sounds like you have endured some frustrations working with agents who don't seem to get it, but expect the closing documents to magically appear at the right time in the right place.  I worked in the mortgage industry before becoming an agent, so all of this was "common sense" to me.  I also feel that no matter which sector of the industry you work in, you can't perform to your fullest unless you understand how all the other pieces fit and what needs to be done when so that things go smoothly for all parties.

Since we're airing our grievances, I'd like to share a story with you about a nightmare closing I just had that WAS delayed by the mortgage company.  This was actually an LO that I have referred tons of business to.  The husband (my client) had been deployed to Iraq and would not be available at signing.  I strongly impressed on my clients the importance of having the POA signed and approved by the mortgage and title companies in advance so there would be no delay in closing.  They appreciated that and got it taken care of 3 weeks in advance.

This was a difficult deal anyway because we were dealing with a bank and purchasing a foreclosed home.  My client also is not accustomed to purchasing property in the United States and wanted to read through everything.  I made sure she had copies of the closing docs days in advance, but my lender did not understand them enough to explain them to her and surprisingly no one at his company could explain them either.  The sad part is that this was a conventional, 20% down loan - nothing fancy to try to figure out.  I had to call in a loan officer from our brand new affiliate lender and ask him to take time out of his Saturday to assist my client.  He obliged and my client was very happy and comfortable with signing on Monday.

Unfortunately, she also had to sign on Tuesday because the lender sent the wrong docs.  Apparently, our POA did not make it to the closing department.  AAAHHHHH! Guess who is NOT my preferred lender anymore?!!  I'll be using the guy who had the knowledge to explain the docs to my client.  The POA issue was frustrating, but the lack of customer service was just over the top for me.  Why would a lender ask someone to sign something that they didn't understand?

Janet

How true! AMEN again on a great post. I'm working one of those foreclosure closings right now!

I've always likened closings to a dance. You have to get everybody in step with the music at the same time...

and we-the lenders- are the DJ's and the choreographers! Go check out Jeff's post on why loans go bad at the last minute too. Good info from all of you today!

Gerry Suarez, Jr.

Your HUD Loan Pro

Janet -

Great advice! And I'd add a #11 --- each busy agent should use a virtual assistant who specializes in closing coordination. The VA will be following up on the process of the loan and all outstanding details while the agent can do what they do best ...list and sell homes. 

I am a commercial mortgage broker in NY and I would like you realtors out there to realize;

Most bank's underwriters, appraisal reviewers, processors, etc. are on straight salary and have no incentive to push the deal through.  I am constantly coaxing them to do their jobs in a timely manner.  Oftentimes I am delayed by the title co. as well.  So please, do not  place the blame soley on the sholders of the mortgage brokers, and remember, we work on commision the same as you, and want the deal to close ASAP so we can buy baby a new pair of shoes.

Good post with some important points.

I have to disagree a bit with point #2 however. In our market we have a set time in the contract for the buyer to apply for a loan. We always have pre-approvals, but to accurately shop for loan terms you need to have a contract with a price, loan amount, and a closing date.

Thanks for the info!

Thanks for the great information.  The timing of this posting is wonderful as we have some issues that we are going to resolve.  Thanks again 

Wow, what great information, I am passing it on to my transaction coordinator.

THank you so very much.

patti

The first thing I do as a loan officer is get everyone involved on the same page from day one - I explain that I am very proactive and that they will be hearing from me quite a bit until I feel confident about the loan process and settlement date.  I twiddle my thumbs like everyone else, but I do it on the closing stretch, not out of the gate

Gray

Great post.  Perhaps we could all use a class on how the mortgage process works. 

Great post, Janet. Good to be reminded of all that must go on from a lenders perspective for funding to happan.

All valid points, but I'm not agreeing with #9.  Your that busy for a 30 day close? Give me a break.  If you are too busy to accommodate a quick close, let the buyer go to someone who wants the loan. Total cop out.

Hi Janet~All these points are excellent and the fact that when we start working with a buyer, having that mentality that we are all a team together is very important. Although my preferred lender doesn't tell me every single thing about the transaction, just knowing that she is on top of it and keeps me in the loop, helps the process go a whole lot more smoothly.  Have a wonderful weekend to come and thank you for sharing your knowledge.

I am guilty of #3 and I just today experienced #6. Great blog and I am printing it to keep handy!!!

Janet ... thanks for this article about what you can do to avoid having a loan funded late for closing. Keep up the good work and writing.

Harrison K. Long, www.ExploreOCHomes.com, Irvine, CA

Janet- the #1 reason for me is to be sure that the Buyer is working with a good great loan officer. Makes all the difference in the world.

TEAM play, what a concept! Excellent points all the way around. Evan loans that need to close quickly, er.... quicker than normal, seem to come together 100% of the time when Realtor, Buyer, Broker and lender rally together to get the job done. THAT is a great feeling! As always great reading!!!! 

good thoughts...I believe that part of the problem is that many agents over the past few years haven't EVER taken the time to discuss finaincing and have let buyers wonder without good direction...needless to say that many agents do not understand the difference between a pre-qualification and a loan approval.

As a real estate educator, I see the good agents coming to workhops to "sharpen the saw" and learn more about the lending process and the importance of referring good lenders to their buyers even when the buyer comes into the transaction with "a friend" in the lending business...

Thanks for the post.  Great points and tips.  I will bookmark it for future reference and will pass on this valuable information.

Bravo!

It takes someone truely comfortable to put this kind of thing in writing.

Might I add (as so many wise contributors have already done here), we are a team.  Whatever delays the transaction, delays ALL of us.

And, it's not about getting paid.  It's about getting the job done and making your customers happy!

Thanks for the post!

6. Not understanding that a lender approval comes with CONDITIONS. Conditions can eat up days of a contract. Examples: pay off a collection, but the company is out of business. Prove that this entry on your credit was fraud or in error. Prove that you weren't really late on this credit card bill from 4 years ago. Get your mad X wife to prove she is paying this credit card bill.

Shouldn't the items like collection pay-off documentation, fraudulent entry have been cleared before the buyer wrote a contract?  Also, if the X is paying the credit card bill, wouldn't the credit report reflect current payments? 

I don't want any surprises like these just days before closing.  These don't sound like normal conditions that I'm accostomed to like appraisal, employment letter, etc. 

Communication and Dedication:)  These are such important keys.  We are blessed and not so blessed...lol....sometimes to have internet, blackberry, cell phone, etc. at our fingertips as long as we keep in contact with our team and the lines of communication are open, even when extensions are needed they don't come as such a shocker.....Keep it in writing, keep it clean and then there's no blame game:)  Real Estate can be a wonderful career, stressful at times...lol....power packed!!! But at the end of the day do what you love and love what you do:)

Ask not what causes loans to close late. Ask what YOU can do to help loans close ON TIME.

Janet - I love it! Each party needs to take some responsibility and be proactive. I'd suggest, too, that it a lender is waiting for something from the buyer or another party to the transaction - let the agents know so that they can work on it, too.

Good points Jane..we all need to take responsibility for what we can do....and then actually DO it !

Communication is definitely a two way street, often times Lenders try to clear conditions with out letting the agent know there are any.  It is hard to help when we are kept in the Dark by many mtg brokers.  This is a great post for both Realtors and Lenders to learn from

Sheila: There is a very delicate balance to the exchange of information between mortgage broker and Realtor. As a rookie, I believed the Realtor should know everything. But often this caused great anxiety on the part of the Realtor, who would become unglued.

Once, a Realtor even called my boss because he became so concerned about some information I had passed along.

Not to mention, some conditions are personal and the client may not want the Realtor to know. If conditions concern the Realtor, or the contract, then this information should come to Realtor immediately.

S & D: I agree but would only add that it needs to be done with a sense of urgency. A deadline looms.

Sharon: I always use the strategy of having the buyer hear from both me and the agent that this needs to be done. Twice is nice.

Diana: I love that someone from Copperopolis has commented. You are in my favorite place in the world, and I place where I have financed many properties.

 Extensions for the buyer's agent I find are not so much of a shocker. But often listing agents are out of the loop and they are the ones that must face the seller.

Lenn: Normal conditions like you have mentioned have already been thought of by me and sent into the lender. I always like to play offense and not defense.

I would rather my buyer NOT have to pay off that collection, so I am going to wait till the bank tells him to do it. But then, what if company is out of business? How does he get it cleared?

Fraudulant entry was unknown to buyer until credit was run. Yes, buyers do get into contract without ever having their credit run.

Re: the  credit card bill being paid by x wife. Borrower debt to income will not fly if he is responsible for the payment. He never took his name off the card but wife has made payments for years.

Lenn: these are all real life conditions that I have had to deal with. NOT as a surprise at the end, however. Point being that these items took days to resolve while contract was ticking.

I totally agree.  It is so important to have good communication between all parties involved.  When problems do arise, heaven forbid, it's not about playing the blame game, but finding out possible resolutions.  I think it is our job, as the real estate professional to stay informed on financing issues and how we can better get our client to closing.  I'm reading some of the "nightmare" comments and it's terrible when a loan officer and Realtor don't treat each other with mutual respect.  Aren't we all wanting the same thing....to assist people with home ownership and of course, don't forget we get paid to do it!  Thank you for your post. 

I think a lot of good points are made here. Co-operation is key. Customers who don't understand how tight the timeline really is make life difficult when they drag their feet. On your way to a featured post.

Thanks for the great information.  The timing of this posting is wonderful as we have some issues that we are going to resolve.  Thanks again  Bill Foxworthy

This is a GREAT list. Every agent (esp new ones) should need to study this after passing their state license exam.

Fantastic list! This is a team game, thank you much for pointing that out to some that don't understand.

If only we could get the lazy agents and lenders to spend a little time on ActiveRain

Jonathan Blackwell

Hi Mary: It is hard to be on the same team when you are not aware of the plays the quarterback is calling. Thanks for your input.

Bill: Yes, issues! Every transaction seems to have issues. Good luck!

Patrick: Everyone needs to understand that a contract is ticking. It is what makes a purchase so different from a refinance. You, the mortgage broker, have a deadline, with hell to pay if you don't make it.

Jon: Maybe not lazy, but certainly not as educated as we are from all of the information exchange.

Leslie: I am reading backwards and have not seen the horror stories, but certainly not surprised.  If we would only remember that all decisions should be made by asking "what is best for the client?"

I would like to comment on those that disagreed with certain points:

To Lyn who called # 9 a cop out: This was not meant to be an appeal for agents to write contracts of longer than 30 days because I "don't have the time" to handle a loan with a short closing. In fact, I didn't even mention a time frame.  

My Point:  it is better to be realistic in the beginning with a seller than to promise a quick close as a way to get the deal signed, then deal with all the issues of a late close.

To Jon, in disagreement with #2: We have almost done away with "loan contingencies' in California because they cannot really be removed until the loan funds. Just because someone makes an application in no way means they can't make another application a week later with a different lender. 

My problems in the past have all came about 25 days into a 30 day closing and wished I'd known about them from day 2 or 3. I like to know everything that's going throughout the whole process and have had problems at the last minute if I'd only known about them all would have gone smoothly. Right now I would just like to have problems with the loan process as we have really slowed down around here. 

www.bobsellssumter.com

Well stated Janet - we are all on the same team....and communication between all parties involved is critical to successfully closing escrow on time.  There are lots of moving parts in an escrow.

Janet: Interesting and informative blog. Great dialog between mortgage brokers and Realtors. I think we can all stand to be educated and understand each other's challenges.

I do disagree with your number 4 assertion that preapprovals aren't worthless. I have absolutely no faith in preapprovals at this point. I would personally like to see mortgage brokers put more effort into making sure someone is credit worthy before offering a preapproval letter. I recently had a buyer approved. I drove him around for days before finding out he has an income tax lien.

I am the type of person who is totally into communication. I get the feeling that many mortgage brokers perceive agent phone calls and email inquiries as disruptive. I rarely feel comfortable that I really know what is going on behind the scenes and I definitely do not like surprises. I think problems should be communicated immediately, along with proposed solutions, if there are any.

I think mortgage brokers should actually meet with clients and not just communicate via email or telephone. I think mortgage brokers should show up at closing to answer questions, and in fact, should go over any questions before closing.

I recently had a closing where there was a silent second with a  balloon payment in "x" years. I knew nothing about this and the mortgage broker was not there to answer questions. We had moments of discomfort, followed by phone calls to the mortgage broker, the home office, etc.

To be fair to the mortgage broker a difficult loan did fund, but I felt there should have been more communication. I think some people are good at putting together loans and maybe too busy to "hold hands."

Also, your point about "banker's hours," is a little irritating. As you know, Realtors are on call 24/7 and as you noted the contract goes consecutively, with no time taken off for weekends or holidays. The mortgage brokers who are very service oriented make themselves available at such times for preappprovals and I think that is amazing. I really appreciate that.

On the point of 30 day contract only giving the mortgage broker 20 days to perform: Why not issue a timeline to the client and Realtor?

And do you not consider Realtor's your customers, as well? It sure doesn't seem like mortgage brokers look at Realtors in this light.

On occasion, I have had clients who wanted to have a totally confidential relationship with the mortgage broker and leave the Realtor out of the loop. I cannot work this way (re: your comment about confidentiality). I think we all have to agree to be on the same page. If the client is divulging certain things to the mortgage broker and not to the Realtor, and the issues are problematic, it is not fair to the Realtor who can sense that things are not going well, but has no idea specifically why. That is a total waste of everyone's time as far as I am concerned.

Enjoyed your blog.  Great information

Janet - you have some great points here - one of the main criteria I use in choosing my 2 favorite lenders has been communication.  We have to work together to make sure things are done on time...it is in all of our interests.  If a document is needed or a boot to be applied to someone's keister in another town to provide what my lender needs, I have no problem helping...if I know about it.  

Thanks, Janet. Great advice. As I'm just finishing up the most difficult loan I've done yet in my relatively short tenure, amen to you. I love realtors but this one has been a pain due to the incessant phone calls and the misunderstanding that an FHA deal probably won't be closing in 3 weeks. This is after I told them to specifically write the deal for 30 days. We're on our second extension as we speak. Oh well, life goes on! Thanks for the great post!

Paul

Ooooh excellent points!  That's the way to create a "win-win" situation.  Thank you for putting it in writing so we all move forward with smoother and less stressful transactions!

Janet,

Thanks for the informative and timely post.  The home buying/selling process can be filled with emotional stress for our clients, and part of our job is to smooth out the "bumps".  Communication is one of the best ways to do that.  Thanks again for the reminders.

Thanks for the reminder.  Everyone is a little more testy these days and anything the professionals involved in the transaction can do to help is well worth the effort.  We all need to be on our toes.

Great post.  Having worked on both sides of the fence (Mortgage Broker and Realtor) I would also ad the COMMUNICATION on all sides is ome MAJOR key to closing a loan quicly and smoothly.  It does not shock me how little Mortage Brokers and Realtors really understand what each ones function truly is.  You can't really know until you have experienced both.  Hence, communication and keeping all parties in the loop.  I find that GOD must have created email.  A simply "cc" to both agents and even the title closer goes a looooooong way in keeping all involved.

Hi Janet - Looks like a pretty simple list to follow. Personally I think Realtors should be much better educated when it comes to financing. There are too many that don't have a clue and frankly don't care that they don't know. It seems that there ia an attitude of I don't need to know this because MY MORTGAGE broker should.

Also do not forget...Was the title ordered on time or was that forgotten.  The blame can then get pushed to the title agency, since the Realtor thought the Mortgage Person ordered it and vise verse, or better yet... The client says their friend has a title co, I will get it from them, and then forgets. We are normally ready to go and are waiting for the mortgage co's or mortgage broker's. Approvals are taking ridiculously long and they seem to be losing documents and hav to request again, or it took so long things have expired and have to get new documents.  Is anyone else finding this?  WE have the Realtors calling us, because the Banks, Mtg co are not calli