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Overpromise and underdeliver. Also not keeping informed as the transaction changes.
Chris and Berna Sloan
Walnut Creek, CA
Blaming others in the transaction for not meeting deadlines. The buck stops there and I know there are times the lender drops the ball on ordering the appraisal or title. It is not always someone else at fault.
Chris and Berna Sloan
My biggest frustrations are lack of communication during escrow, and not giving back to the Realtors who refer to them.
Lazy lenders who don't know how to communicate or do the preliminary legwork.
I am not frustrated with them.
parked and reading
im just clicking back through some of the old Q and A's, looks like this one got lots of good answers.
I'm in agreement with Inna!! COMMUNICATION!! Just send me an email when ANYTHING signifcant happens (NEEDLE MOVER)....and to the lender, please do not add me to your email list post transaction... :( (LISTING SIDE)
COMMUNICATION...period! I can deal with every other problem mentioned if I have good communication!
I'm going to take a different approach as the wife of an LO. Agents expect the LO to reveal confidential information about the buyer or the mortgage transaction and become disappointed when this doesn't happen. Instead of not communicating with the agent, redirect them to the buyer for more information. The most typical delays that I see actually occur during the appraisal process and of course, agents find it impossible to believe that it was the appraisal that took 14 days to be completed. The AMCs are the worst thing to happen to real estate in a long while. They have zero stake in the process and zero accountability for the delays that they cause.
Our biggest frustration is with lenders who do not know the proper questions to ask when pre-qualifying a buyer for a loan.
The typical structure of the lending business requires the LO to make promises for which they have to the ability to deliver. Too much of the process is way, way, way beyond their reach....and they won't admit the same.
Here's what I want. A FINANCIAL commitment on the part of the LO/lender for $500 every day past scheduled closing.
Here's what I want. The underwriting for the buyer to be fully completed the first week. Appraisal and final credit check can be done prior to closing. This requires to LO/Lender to commit their resources just like I have committed mine at the front end, not two days before closing.
Show me you really mean business.
I cannot trust most mortgage lenders to be accurate on a PQ, so I have my clients do anothe PQ with the few lenders who are true pro's. They have never let me down.
They are truthful and honest in their stand and change their minds too often and don't allow enough time to respond
Lenders who scribble out pre approvals to people who clearly are not approved....
Andrew - Great question. Having been in the mortgage industry, I know how things go. The problem with lenders is they always say they can finance someone (and like to guarantee it 100%), only to find out a couple of days from closing that they cannot. Instead of communicating any and all issues, and being honest up front, the lender continues to tell me that everything is okay and we are scheduled to close on time when they know there are issues and hurdles to overcome. They try to hide the info from me instead of letting me and the borrower know up front so we might be able to help clear up those issues. I just wish they would be honest and open with the information they get from the underwriter, etc.
There are some that are awesome to work with and others that have a deaf ear when it comes to correcting them, even with proof. Sometimes, you can send the same docuent to them, several times and you have signed proof that they received it, but they will deny getting it. Some just want to prove they are in control, which doesn't help the industry any.
Andrew Scherer - sometime we don't know the 'whole' truth from them on why there are delays in the process. Overall, I don't have many concerns or complaints.
I have an awesome Lender and I am always getting educated about different loan products, he says I know more about loans than the normal agent, however, some of the stipulations seem unfair to me. Of course my mind is blank and I cannot think of one circumstance...
Poor communication when something goes wrong.
Too many overpromise and underdeliver. Too many simply don't meet deadlines and don't communicate thoroughly with their cients.
I practice in Iowa and Iowa is an abstract state. Our office I will not update an abstract until I have a final loan approval from the buyer's bank (meaning the appraisal is complete, all buyer's information checks out and all documents have been received and approved by underwriting). The reason I wait is because if something goes sideways the seller is still responsible for the fee for the updated abstract ($400-$650). Once the abstract is updates, it is taken to an attorney who then writes a title opinion.
This can cause a big time crunch come closing time. Many times the bank will not provide the final loan commitment until just prior to closing, I am talking days! Most banks want the brokerage to update the abstract and obligate the seller before they will provide final loan approval. I am not willing to do that unless the bank is willing to pay for the update if the buyer fails to be able to purchase.
Communication. As a listing agent I have no control over the choice of a lender. Most of the times, it is almost impossible to reach that lender.
No more offers of food!...I'll get over it. ; )