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Using The Right Lender & Title Company

February 14, 2020

Using The Rigt Lender and Title Company

by Sandra C Brown, GRI Broker Dream Catcher Realty

 

Many people mistakenly believe all lenders an title companies are the same. They in some cases do not the time to vet them  and inquire about the products and services any offered.  In many cases a real estate agent will a short list of lenders and title companies that are suited for the job.   Using the firms off the list can usally save days of headaches.    The following are true stories.

 

1) The mobile home  railing& attic .  The buyers had a contract for a HUD mobile home. The home was in good condition. The lot was over 3 acres. The view were great.   The HUD condition report was insurable.   The HUD appraisal said no repairs were needed.  The first week after the contract was executed the lender verified all  the buyer's finances. In the second week the title company ran the title. No problems.   In week three the lender ordered an appraisal.   The appraiser noted a) the  opening to the attic was   only  plywood  and b) the railing on the deck was within building code but NOT within the lender's overlay.    Both of these items were complaint with the local building code. But they not within the lender's guidelines. Two weeks were spent argueing with the lender tht the home is code complaint. However, the lender's position was it may be code complaint but not our rules complaint.  The bottom line was this lender would NOT loan any money on mobile homes requiring any work. The buyer was forced to find a new lender and they closed after a 5 week delay caused by the first lender.   This caused the buyer to pay for weeks worth of extension.

 

2) The 40 year home in good condition; HUD condition Insurable The home is an older home but in very good condition.   The roof was under 10 years old. The electrical system  was approximately 5 years old.  The kitchen and bathrooms were very dated and looked to be 40 years old. The buyer wanted to update the kitchen and bathrooms.   The first lender was just slow.   The buyers had the house inspected about 7 days after an executed contract.   It passed with no issues.   Two weeks after the buyer's had submitted an accepted contract and the lender had done nothing. At week three the lender requested and verified the buyer's finances.  The buyer heard nothing for two more weeks.   The lender then said they would order an appraisal.   Nothing else happened for about a week and a half.  The appraiser did call and show up and did part of the apprisal and suddenly left.  No one was able to reach the lender or the appraiser for over 10 more days.   Suddenly the lender called and they would not loan on the house because it was 40 years old.    The buyer had to find a different lender and had to start from scratch.  The buyer had to get over 45 days in extensions before closing.   

 

3) The title company that is full of last minute changes.   The buyers of this home lived out of state.   Two days before closing after a "ready to close" had been turned in to HUD the title company suddenly announced  6 feet of driveway was shared and until a shared driveway  agreement was executed by all parties there would be no closing    This in its self delayed the closing by another week.  But wait all is not done.   Next after the driveway issue is corrected the title company contacts the buyer about coming to the closing.  The buyer lives out of start and said they simply thought the documents could be over nighted to them for signing.   However, this title company said we don't do mail away closing.  The buyers were forced to change title companies and incurred a two week delay 

 

Many real estate professionals have a short list of lenders and title companies.  These lists also usually include a description of what these firms can and cannot do.  We urge people to take advantage of them.    The lender who closed Uncle Joe's house may not lend on your new dream house.   

 


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