Denver Real Estate News
U S Bank Staff Person Had Years of Experience but Still Couldn't Get Job Done!
In the trenches of my business life, I spend a lot of time fighting for my clients. It’s been a wild and crazy year selling real estate. I’ve had several buyers who were employed with good income and credit scores basically get TAKEN by mortgage lenders. Let me tell you about it.
Toward the end of 2015 I started working with a nice gentleman who had read up on buying a home and visited his local lender to get prequalified. He did this all before he consulted with me. I was naturally impressed that he took the initiative and so we went off to find him a home.
It didn’t take long before we were under-contract with a nice home in N. Denver. Then the horror began. The lending institution was U.S. Bank. Their staff person was the horror. To make a very long story short I will synopsize. My buyer kept getting the run around from the lender. She kept asking for “inspections.” We normally do an inspection but then she wanted the inspection items reinspected, despite the fact the seller had the issues fixed and provided proof in the form of receipts. Re-inspections were not only expensive and unnecessary but not customary!
Additionally, she at U.S. Bank failed to tell my client he had to make an appointment with another institution to submit an application for the 2nd mortgage (assistance program) she had placed him in. By failing to do this she set the loan approval date back by over a month. This delay brought my client very close to being homeless! He had spent all his additional funds on non-customary inspections and engineer reports, he had given notice to his landlord and now he had no place to live.
At this point the failure of the U.S. Bank staff person to meet the contractual deadlines cost not just the buyer additional funds, but the seller as well. The seller was an estate and failing to close in the calendar year meant the estate got dragged out for another year!
Lucky for us the listing agent suggested we move the loan (Lucky also because they didn’t throw us overboard and let us extend the closing date!). We were delighted to do so because by this point we had ZERO confidence in the U.S. Bank staff person. I had gone “over-her-head” to see if we could get a solution, but her superior officer was just as inefficient.
So we moved the loan and started the process over.
The new lender put us in her “HERO LOAN.” Why? Because she got it done in less than 3 Weeks! My client ended up having a better loan package with a grant for his down payment and not a 2nd loan!
Now for the IRONIC part. The loan was brokered thru U.S. Bank! Only the players had changed!
Not all lenders are equal, that's for sure!
Part II - Online Convenience Comes with a Price!
Another client came to me. We found a home for him within a day! I suggested he consult with one of my preferred lenders, but instead he decided to use a big online lender. The big online lender who’s name starts with a “Q” did a good, timely job to get the buyer approved. No kidding he was putting over 20% down!
But at closing the shock came.
The loan costs were excessive by $6000! Holy cow, that’s a year’s worth of car payments on a pretty nice car!
Every story has a moral to it. Here’s the moral to this story, consult a Realtor before making a decision on your loan.
There’s more to evaluating a loan than just the interest rate. There’s the reputation of the lender, the closing costs comparisons, can they get the job done? If it’s their first rodeo do you really want to risk it?
As a buyer you spend money when you start your loan, inspection costs are not fees you will ever see again if you don’t get that financing. Who wants to risk that? I certainly don’t!
Take the time to interview a lender or two. Ask for references from a Realtor. We work with these folks all the time, we know who is competent and who isn’t. That’s what we do.