The NECESSITY of a GREAT LENDER

By
Real Estate Agent - CENTURY 21 Tim Gauntt Co.
I continue to be reminded the importance of having a great lender involved in every transaction. Trust me, I try to introduce a great lender into EVERY sale. Within the past week I have seen 3 closings nearly derailed for lending. And, the clients are TOP NOTCH;) 1) A Dr. Buyer 2) A Seller whose home has been remodeled top to bottom and can afford to purchase without selling 3) My own personal residence for sale. 1) The Dr. made a decision to work with a local bank who has a special program for brand new doctors. Based on the current market, the young doctor decided to rent his current home and purchase. The bank preapproved based uponthis knowledge, receipt of 24 inches of background data, banking statements, tax returns. One week before closing the lender requires 6 months of reserves in the bank, based upon his rental property....as if they weren't aware of that when they helped him make the "EASY PURCHASE" decision. Well, good thing for everyone - he had the money. Now just two days from closing the file has been put on hold AGAIN. We just discovered that the bank runs ALL buyers, sellers, and the corresponding agents through a National Fraud Registry. Seems like the seller's agent, BOB SMITH, has a name like a previous scam artist. Poor Bob has to prove that he is hands are cleaner than a physicians prior to a major operation. (Did I forget to tell you that the poor D.r had to write a letter to explain why ATT pulled credit last week, as he sought to have his new internet/cable established. Additionally, he had to write another letter explaining why he had an inquiry 6 months prior, as he purchased a car for his wife....and...and....and....) 2) The sellers home is under contract. The lender ordered the appraisal. Good news - the appraiser was out to the home 7 days after it was requested. The appraiser waited 4 days from the date of the appraisal to request a "clean" copy of the contract. The bank provided that immediately. It has been 4 more days and still no sign of the appraisal. So the sellers wait and worry before they pack. (The buyer is using a national bank as their lender. Something I have seen create delays and many missed closings. I suggested my local lender who lends their own money and has NEVER missed a closing. Sigh!) 3) Now, to my favorite client....my husband and ME. We are both real estate brokers. We were blessed enough to be able to buy a home before selling. We purchased a foreclosure. We put our house on the market the first part of January and we are scheduled to close....today. Last Thursday we hear that the appraisal hit. That night, my husband moves his most prized possession...his bed. Last Friday, he has other essentials moved. Three days ago we hear that our appraisal was thrown into an appraisal audit due to the AVM comparison. That's right, a computer tells a human that what they have done is not to be trusted. A computer with no knowledge of the local communities, neighborhoods, building finish out and special features of a home. A computer that looks at location and size. So now, another human is required to review the details of the appraisal (without having seen my home) and make a determination of value. Hoping that today is a Good Friday....with resolution on each of these. Still loving what I do and so thankful I get to do it! Just thinking about the week behind and the week ahead.
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I continue to be reminded the importance of having a great lender involved in every transaction. Trust me, I try to introduce a great lender into EVERY sale. Within the past week I have seen 3 closings nearly derailed for lending. And, the clients are TOP NOTCH;) 1) A Dr. Buyer 2) A Seller whose home has been remodeled top to bottom and can afford to purchase without selling 3) My own personal residence for sale. 1) The Dr. made a decision to work with a local bank who has a special program for brand new doctors. Based on the current market, the young doctor decided to rent his current home and purchase. The bank preapproved based uponthis knowledge, receipt of 24 inches of background data, banking statements, tax returns. One week before closing the lender requires 6 months of reserves in the bank, based upon his rental property....as if they weren't aware of that when they helped him make the "EASY PURCHASE" decision. Well, good thing for everyone - he had the money. Now just two days from closing the file has been put on hold AGAIN. We just discovered that the bank runs ALL buyers, sellers, and the corresponding agents through a National Fraud Registry. Seems like the seller's agent, BOB SMITH, has a name like a previous scam artist. Poor Bob has to prove that he is hands are cleaner than a physicians prior to a major operation. (Did I forget to tell you that the poor D.r had to write a letter to explain why ATT pulled credit last week, as he sought to have his new internet/cable established. Additionally, he had to write another letter explaining why he had an inquiry 6 months prior, as he purchased a car for his wife....and...and....and....) 2) The sellers home is under contract. The lender ordered the appraisal. Good news - the appraiser was out to the home 7 days after it was requested. The appraiser waited 4 days from the date of the appraisal to request a "clean" copy of the contract. The bank provided that immediately. It has been 4 more days and still no sign of the appraisal. So the sellers wait and worry before they pack. (The buyer is using a national bank as their lender. Something I have seen create delays and many missed closings. I suggested my local lender who lends their own money and has NEVER missed a closing. Sigh!) 3) Now, to my favorite client....my husband and ME. We are both real estate brokers. We were blessed enough to be able to buy a home before selling. We purchased a foreclosure. We put our house on the market the first part of January and we are scheduled to close....today. Last Thursday we hear that the appraisal hit. That night, my husband moves his most prized possession...his bed. Last Friday, he has other essentials moved. Three days ago we hear that our appraisal was thrown into an appraisal audit due to the AVM comparison. That's right, a computer tells a human that what they have done is not to be trusted. A computer with no knowledge of the local communities, neighborhoods, building finish out and special features of a home. A computer that looks at location and size. So now, another human is required to review the details of the appraisal (without having seen my home) and make a determination of value. Hoping that today is a Good Friday....with resolution on each of these. Still loving what I do and so thankful I get to do it! Just thinking about the week behind and the week ahead.