It is too often when buying or selling a home becomes more difficult than it should be. Somewhere along the line there is usually a problem and more times than not it is with a lender. A common question I get is, Are things getting better with lenders? My answer today would be, NO, especially the bigger lenders who still seem to work harder at declining loans than approving them.
The issue we see with lenders varies but many stem from lack of urgency to get a loan completed within the contract timeline. A transaction we are currently working on, had a target close date of July 5th. With the holiday the lender asked to change the close to July 9th. Needless to say, this date has arrived and the loan documents are not even at the escrow officer yet. With these kinds of delays come more work for others and frustration for all.
Another transaction we are working on is a condo purchase being financed by Wells Fargo. All was going relatively smoothly until the underwriter discovered the fire insurance policy was set to expire within the first 30-days of the loan. We were able to determine and provide a letter from the insurance agency stating the policy renewal proposal had been sent to the HOA, that they expected the policy to be renewed but even if the HOA decided to move their coverage the existing policy would continue to cover the complex until it was canceled in writing. Believe it or not, Wells Fargo rejected this stating the letter did not show the HOAs intent to continue coverage. This has caused a hardship for their client and a great deal more work by others involved in the sale.
Will we get these two sales completed? Most likely yes, but the amount of time, energy and frustration for the sale is exponentially increased. We work very hard to make buying or selling at the very least a positive experience but even with good intensions and experience working for us, accomplishing this is harder than it should be.