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How can we work better with lenders?

08 Apr

Unfortunately, lenders are on the cutting edge of causing grief in the real estate industry.  It starts with promises they can’t keep to phony approval letters to having your buyer run the underwriter’s guantlet where requests for information are doled out over a long period of time to help insure that everyone fully suffers from the agony.  If you are lucky they finally get approval on the day of closing maximizing the problems of moving arrangements.  If you’re not lucky, they wait until the closing date to turn the loan down thus maximizing the time lost with the home off the market. 

In the old days, we had time frames for getting loan approvals at which time the house would go back on the market.  My agents tell me that if we did that  lenders still would not get in a hurry.  We seem to have lost control over our transactions. 

Most of the time, the loan officer cannot be faulted either.  They are just as frustrated as we are but there seems to be no one ‘crying out from the wilderness’ to do anything about it.   All of the new regulations just seem to make it worse. 

Does anyone have any ideas how we can work better with these lenders?

(The first agent to post a comment to this will receive a $25.00 Gift Certificate to Chili’s).

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5 Comments

Posted by on April 8, 2010 in Broker remarks

 

5 responses to “How can we work better with lenders?

  1. Devi Allison

    April 8, 2010 at 10:08 am

    I believe we need to get away from the “30 day” closing mindframe. It just isn’t happening any more. With the new regulations and the lack of knowledge that the lenders have of the regulations, underwriters are getting bogged down. At this stage of the game I would allow 40 days to close until things get running smoother.

     
  2. Allen Stout

    April 8, 2010 at 10:44 am

    When I first started it was customary to allow 45 days for loan approval and 15 days for title work for a total of 60 days. We did this routinely. Things have changed because of all the promises loan officers and title companies have made that they can do things that are not humanly possible. I liked it better when they underpromised and overdelivered.

     
  3. Sandy

    April 8, 2010 at 11:27 am

    Congratulations to Devi! She has won the Chili’s gift card!

     
  4. Jeff

    April 9, 2010 at 12:22 pm

    what if you are the second agent to post a reply do you get anything for that..

     
  5. Allen Stout

    April 20, 2010 at 9:19 am

    Make comments here

     

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