It’s a challenge to get deals closed in this new environment, especially with out of state lenders!
It’s a challenge to get deals closed in this new environment, especially with out of state lenders! With all the new loan requirements and tightening of funds. I thought I would share my experiences from the last 2 deals in hopes that others may learn from my challenges.
Deal 1-Customer chose national lender where all loan processors are a 3-hour time zone away and seem to be unaware of contractual obligations. I do recognize (or have heard) that legal counsel is heavily involved with real estate transactions in some states where counters and additional changes continue for a couple of months prior to escrow. Not so in California, as a rule. The California association of Realtors provides forms to agents that are fill-in-the blank with multiple options for addendums that often serve as the entire contract. The “norm” here is 17 days to release the appraisal contingency and the loan contingency, yet there is a blank to adjust that either to fewer days or more days. Generally speaking, when making an effort to write a clean contact, I like to stay with the “norm” and work to negotiate on points that are most important to my buyers; where they really need concessions. The contract, with terms agreed upon by buyers and sellers included the 17-day window to release the appraisal contingency and loan contingency. Without going in to all the details, I will say that the loan processor referred to this deadline as my preference, told the buyer I negotiated a poor deal on his behalf and left me hanging on the 7-day deadlines (proof of application and verification of funds) and on the 17-day deadline. We managed to get a senior loan processor on the line after hours on a Friday evening who was able to meet the requirements. Ultimately we closed, but the customer and I both spent HOURS on hold trying to get to the right people to make the deal happen.
Deal 2-Customer chose local credit union. Sweet! Can I say it louder? SWEET! Johnny on the spot, well, her name was actually Katie. Katie knew the ropes, performed on time without daily reminders and pleading and the deal has gone as smooth as silk.
Deal 3-Customer wanted to use out of state credit union. I asked to be present to help interview the lender. You see, we require a loan approval in 17 days. That means that the deal has been through underwriting. The credit union kept telling the client he was approved. I asked for the phone and explained that we needed to be through underwriting as we have to sign a loan contingency release on day 17. Well, it seems they cant’ do that, but the customer is “already approved”. Buyer wants the home, buyer contacts local mortgage broker who knows the ropes and has a competitive rate. SWEET!
It’s a challenge to get deals closed in this new environment, especially with out of state lenders!
I am an agent with sales and marketing skills that exceed the norm. I have invested in training and designations. I am experienced and have the brand and the tools to sell your Tri-Valley home.When buying or selling real estate, contact me as I am a skilled agent, offering extensive area knowledge and strong negotiation skills and am truly focused on “Getting You Where You Need to Be!” Please call me today.
Click to e-mail: Vickie@VickieSellsHomes.com
http://www.VickieSellsHomes.com
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