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I can personally attest to this. I had a gold plated buyer and was assured by my mortgage guy, we could close this in 35 days. It is now day 35 and we don’t even have loan documents in escrow. This means, the earliest possible close of escrow date, November 21st, 43 days.
Let me put this in perspective. These buyers not only are professional employed at the same jobs for many years, everything was perfect. He is a patent attorney with almost a full year’s work on his plate, she a teacher in the Houston schools for 20+ years with tenure. Their credit was super, they were putting 50% down and they would be using the property as their second home. The 1,800 sf home is brand new, in a very nice neighborhood and appraised at full value.
The reason my mortgage guy gave me, and by the way he has been perfect prior to this, were some of the obvious ones. The loan underwriter has too many files in front of them, all the major banks are now only using in-house people to do home loans and everyone is scrambling to buy something before year’s end and this impending precipice we all are facing.
The moral of this story: if you are looking to purchase between now and the end of the year, you better be in escrow already or your agent have your offer in hand running to present it. Add to this and the extremely low inventory is sure going to make for an interesting time between and year’s end. Below is more on this story from C.A.R. Market Matters.
Potential borrowers eager to find lenders with superior service
A poll by Carlisle & Gallagher Consulting Group found that more than a third of potential borrowers would be willing to pay a higher rate if the mortgage came with superior service. The survey didn’t say how much more the 34 percent were willing to pay, but it did find that this group is a frustrated bunch.
Making sense of the story
- More than half think the process is too slow. A third find it impossible to track the status of their loan application, an equal percentage say it is too difficult to talk with their lenders, and a quarter don’t believe the advice they’re given.
- A starting point for borrowers is to ask their real estate agent which lenders offer the best service. Agents know which lenders keep their promises and close quickly without incident. Another option is to ask friends, co-workers, and relatives about their experiences.
- Beyond that, prospective borrowers should look for several attributes that will help them find a responsible company or accessible loan officer.
- Borrowers should look for a consistent point of contact. Federal regulators have already settled on this as a requirement for loan servicers – the companies that collect payments, disburse funds to cover property taxes, and homowners insurance and otherwise administer loans.
Dealing with a company that provides up-to-date status information also is beneficial. There’s nothing worse than chasing down an unresponsive loan officer to make sure this document or that report has been received, or to find out whether underwriting has looked at the application.