Rarely do we have a closing delayed due to incomplete loan work when the buyer’s lender is an experienced local Austin lender. In fact, we often have closing docs a week or two early (Thank you, Helene!!).
The opposite is true with out of town lenders. We are often chasing down these out of state lenders 5 to 7 days before closing trying to get the loan docs to the Title Company with closing instructions. If we don’t stay on top of them, they drag their feet. Many are so incompetent it boggles the mind (the stories I could tell…), but they attract buyers by promising lower closing costs and loan fees (which often don’t turn out to be what the buyer thought they were getting). You get what you pay for.
I’m doing it again this morning – trying to chase down a deal with a lender from out of state who is non-responsive, MIA. This is one of the many behind-the-scenes things we do as Realtors. Most people may not know how time consuming it can be, trying to keep the loan on track and moving. Closing is set for early next week. Buyers are out of state, so are the Sellers, so it will be a mail-out. We need everything in by tomorrow to allow time for FedEx to and from both the buyer and seller, and nobody had heard from the lender this week.
If this one gets delayed, it may be the straw that breaks the camel’s back and we will seriously consider working only with buyers who use a local lender. Can we legally do that? I’m checking on it, but I think so. It’s for the buyer’s own good. Will it hurt business? Not any more than the damage done to our reputation with other Realtors when we can’t get our buyers to the closing table on time because of loan problems. It’s very embarrassing when that happens, and there is no excuse. We can blame it on the lender, but ultimately, we control that side of the deal and it’s our fault when things don’t go right.
Buyers, use a local lender when you are buying real estate. Just do it. Don’t shop the internet for the best deal and end up with one of these Internet Bozos who don’t know how to push a loan through, don’t control the underwriting process, don’t know Austin real estate, and often pick their appraiser from a phone book or internet search. It’s too important a transaction to not have the best team players you can find, and your lender is a very, very important member of your team.