I have discussed, yelled, screamed and whispered with many of you the importance especially in this current market of only dealing with a Direct Lender and not a Loan Broker. The mortgage business is not what it use to be and unfortunately IMO loan brokers have become second class citizens. If you want to insure that your loans close in a timely manner then go to a Direct Lender that is drawing loan docs locally and funding locally or as minimum is funding in Southern California. I’m in San Diego and Southern California mainly Orange County is the home of many lenders. You may not have as many “LOCAL” option but try to find and maintain good relationships with quality lenders. Here is the response that we received today from a loan broker on a short sale transaction that must close by the 28th;
“Unfortunately we can only move as fast as the investor and with rates where they are right now the lenders have tons of files………it’s in line to be reviewed and we’ll update you when we have updates”
In other words what this loan broker is saying is that he has no control over the transaction and has to wait until the investor that he is submitting the loan to gets around to providing loan docs. We are the listing agent on this transaction, we are not familar with the buyer’s lender and who they choose to use is entirely up to them but if you are the listing agent and get a pre-approval in support of the offer being submitted you have the right to question the buyer’s agent about the lender they are using.
Sellers often receive multiple offers. If the seller receives an offer approved from Joe Blow mortgage broker and another offer with a loan approval from a well known nationwide direct lender it’s going to influence the seller’s decision. Which offer is going to be more attractive to the seller?
So Select your lender carefully!