It’s been a great summer of selling, but I am amazed at the number of lender problems. Some of these loan issues are self-inflicted wounds by the buyers themselves and some are a result of people using fly by night lenders.
Fly by Night Lenders
Let’s start with the latter. Yes, we understand you want to shop around for the best deal, the best rate, fewest fees etc, and you should. However please understand that a few cliches REALLY do apply here… like: “ You get what you pay for!” “Not all lenders are created equal.” Or my all-time favorite “If it sounds too good to be true, it probably is.” If some lender is quoting you over the phone a ridiculously low-interest rate that just beats everyone else by a mile, you should be suspicious and dare I say scared. Rates that no one can beat are usually tied to other ways in which the bank or lender will make their money. It might be a low rate, but are you paying a premium in fees to get that rate? It might be a low rate, but there may not be a way for you to qualify with the credit score needed or the amount of money required in a down payment. There are always strings attached to the lowest rate. On the topic of “not all lenders are created equal,” this is so true and we have learned that the hard way.
Pick a Local Lender
When we recommend a lender, we do so with the confidence that this lender is true to their word, that they will perform and get the loan to closing and they’ll do it on time. In most cases we have done many transactions with this lender, we know their procedures, policies, and that they are excellent communicators. Nothing will kill a deal faster than a lender that stinks at communication or worse yet, does not communicate at all. Here are two lenders who The Hawaii Team completely trusts. We know that they will close on time and that they are incredible when it comes to professionalism and communication.
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The lending process will occupy 75% of your time in the real estate transaction. You will speak with your lender more than you speak with your real estate agent. Please, please, please pick a top-notch lender that knows what they are doing. Pick a lender that is local – I can’t tell you how many problems we have with out of state lenders. We also have a tremendous amount of problems with really large lending institutions. Many times with the large lenders there are too many people touching your file. As a result, communication is poor, one person doesn’t know what the other is doing and bureaucracy within the organization is a mile deep.
On the topic of self-inflicted wounds on the lending front, I see people every day that don’t understand the lending process. As such they make mistakes that kill their loan and prevent them from buying a house. These mistakes range from the obvious like quitting your job in the middle of qualifying for your loan to the not so obvious mistakes like buying furniture for your new home. Why would buying furniture for your new home be an issue? You do not want to make any financial expenditures in the middle of the loan process that could change your financial profile.
For many people, the whole real estate transaction hinges on whether or not they can get the loan and yet people trust some really suspicious lenders with the most important part of the process. If you want a smooth transaction, make sure you are working with a full-time real estate team like The Hawaii Team and then allow us to help you find a top-notch lender that will not only be competitive with rates and pricing but will actually get you to the closing table. All of these lender problems and deals falling apart at the 11th hour don’t have to happen. You don’t have to have a bad experience buying a home.
There is a difference in professionalism and service. Call us at 808-913-0899 or email us a team@thehawaiiteam.com
