What’s the most important thing to think about when buying a home today?
Buzz. None of the above.
The most important thing today if you are thinking about getting involved in a real estate purchase or sale is whether or not the lender will actually deliver the loan at settlement time.
In the past few weeks I’ve had clients totally stressing out because their lenders didn’t deliver, at least not when they were supposed to. For various reasons, these clients wanted to use a lender they selected, not one I know personally and trust. Well, based on this experience, I can tell you that it’s imperative that your real estate agent be able to talk with the lender and get a straight answer about how the loan is progressing.
As we all know from past experience, lenders are pretty good at telling you what you want to hear.
Not what you need to know.
And when settlement time rolls around, and if you’ve removed your financing contingency, you need to have a straight answer about how your loan stands. Actually, before you remove your financing contingency, but that’s another blog entry.
I have worked with a handful of lenders that I know — unequivocally — will deliver the loan if they have said they can. These people distinguish themselves from the rest. Use them. Most often they will match whatever low rate you might find elsewhere, or they will beat them anyway. Use them. They want to keep my clients happy, and me happy, and that doesn’t happen when everyone is sitting around the waiting room at the settlement company for hours or days waiting for those magic words:
It’s really incredible how many times I’ve had lenders I don’t know personally call me at the beginning of a transaction and basically suck up in order to get my referrals. They haven’t even delivered yet. And only one of these lenders has actually delivered a smooth transaction and earned the chance to meet me in Clarendon for lunch. 🙂