Rant of the Week | Choosing Your Lender
Jon sump, as you know, with The Home Brokerage. For a long time, we've been doing these videos about just educating you and things like that, but I'd just given it a lot of thought and we're going to be starting doing these rants on a regular basis because I believe you deserve to know the truth about all the things that go on behind the scenes so that you can choose who you work with a little bit better. Okay?
In this particular episode we're going to do here is choosing the right lender. Making sure you ... you know, you got to be careful about choosing them. They're not all created equal. What do I mean by that? Well, for example, I have a transaction going right now that is just a pain in the butt because the buyer chose number one, a part-time agent that has a day job during the day. We can't get ahold of him at all during the day because he still has a day job. When I do finally get him to call me back in the evening, we discuss what the problems were, but now he can't do anything about it because everybody's closed. He's got to wait till the following evening to hopefully get ahold of someone. So now we're another whole day and a half away from when the problems are starting. It just compounds the problem.
That's number one. But now that agent that's part-time that doesn't understand this chose to send his buyers to an out of town lender all the way down in LA. Well should that matter? Well, theoretically, no. I've done business with out of town lenders that are great, with a gal in a San Diego. Perfect transaction, went super smooth, but she was professional. You don't know [inaudible 00:01:59] professional if you just talked to on the phone or on the internet.
So this lender in the middle of the transaction, there's timeframes for everything. He chose to pause the appraisal process because of a loan on a property here in the area from the county that he wasn't familiar with. Instead of calling me or having the realtor call me, they paused the process without telling anyone. So what does that, what's the big deal? Well, the big deal is my client is in the process of moving out of the house. Yeah. Getting all her stuff packed up, ready to go. Meanwhile, these guys over here are just dilly-dallying literally. I had to contact them to find out what the holdup was and then come to find out it was something stupid that they could have solved with a phone call to me.
Long story short, we're supposed to close escrow on it tomorrow, but we can't because of all this hangups that's going on with this appraisal.
So how do we go from not ordering appraisal on the first week to now here we are in the fourth week, literally. 31, 30-day escrow, 30th day is tomorrow, we still don't have the appraisal done. So now the escrow's going to have to be extended, which is going to cause my client more money for the next month's payment in the home. I mean, this all adds up and so my client is ready to cancel the deal, has told me that it's up to me to cancel it or not. Meanwhile, we've got all this other stuff going on.
Please. When you're looking to hire a realtor and a lender, make sure they're, number one, not part-time. Number two, if they're in the area, that's even better because guys like me, they're on it and then they're going to hustle for you. I'll go to their office if I have to to get things done and hold their hand and make sure they do their job.
So you've got to make sure you choose the right people. It matters. The part-time guy that's working all day can't service you. The people that are out of the area that don't understand the loans and everything that's in our area can't service you as well as like, my lender. We started an escrow after we put this, the one we're talking about, I started another escrow after this one was put together that we're already ready to close before this one is. My lender can close deals in 21 days. That's a complete transaction. I don't care if it's a house or duplex, triplex, what? He can close them in 21 days. This isn't a commercial for my lender, it's a commercial for you to understand you need to know who you're getting with.
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