Out of Town Lenders

Not all out of town lenders are bad, just the ones I seem to have to deal with! Twice in the past month I have had great clients who both were using lenders I had never heard of and were located out of the Sacramento area. Both were quick to provide pre-qualification letters when we needed them. One went so far as to say he could close the deal in 14-days when we told him the seller was requesting a 21-day close.

There was more talk than anything coming from these two loan originators. In the first case after six extensions we moved the loan to a local lender who now has it in the final stages and we are expecting a close next week. The second lender experience has been the worst I have ever witnessed. This particular lender has made promise after promise with never any follow through. How can someone say the documents are being sent to the title company five times and are never received? We actually had another lender look at the loan request and were told the clients “just didn’t qualify for the requested amount” but the out of towner continues to promise documents that will never come.

Both of these lenders work on commission, if they don’t make a loan they don’t make any money. On first blush, this sounds good; they should work hard to get the loan done so they can make a living. What I think happens, is when the lender finds out the loan may be difficult, require extra work or they think it might not be approved they “cut and run.” Why spend more time on something you may not get paid for. I know this is what happened on at least one if not both of my most recent bad experiences.

If you are considering a mortgage loan please talk to your friends, family or even your Realtor and find a lender who one of them has successfully worked with. I never push my clients to use one of my lender contacts but I will tell you a lender who has relationship with a good agent has an additional incentive to meet your needs.