Advice on How To Avoid Problems With Mortgages And Banks in
Business with banks can be a bit tricky in certain situations, but it can also be downright undependable. Over my experience I have witnessed problems that would have been avoidable through working with trustworthy banks and loan officers.
Horror Story 1: A veteran wants to use USAA Bank to finance the condo he wants to buy. The Bank takes his application, takes the information from the condo association regarding ownership and budgets, and sends out an appraiser. The appraisal comes in fine, the client is approved, and the loan officer assures me in writing that the property has passed muster. The seller moves out. One week before closing, on the financing contingency date USAA announces that the condo association does not meet their requirements and they wont finance the transaction. (I brought in one of my trusted lenders who dealt with it and saved the sellers, who would have been in serious trouble).
Horror Story 2: Danvers Bank is asked to finance the purchase of a million dollar Winchester MA home. A date is planned with the Bank when they can commit in writing to financing the home; the financing contingency, which is the date on which the Buyers deposit becomes non-refundable if financing is obtained. The deadline arrives and Danvers Bank gives us a commitment letter subject to appraisal. The Bank Officer insists that is a valid commitment letter and were all set. I told him he didnt know his job and got the Buyer an extension until we could get a real commitment i.e. one without critical conditions.
Horror Story 3: A young couple wants to use a close friend who is very experienced and kind at Mid-Island Mortgage Corp. One week before closing, the processing department starts asking for all of their personal financial history documents that should have been requested at the time of application. Three days before closing they check the Sellers documentation and discover issues. The entire process is a sloppy mess and causes everyone a great deal of stress.
The main point is that there are many bankers who are not doing their job correctly. I cringe when buyers want to use a lender I have no experience with. Over time I have found two loan officers who represent great banks, are incredibly responsive and check every detail right up front so we don’t have unpleasant surprises later on: Bob Pezzella of Evolve Bank (617-513-8143) and Liz Ryan of Metlife Home Loans (978-500-5378). Unlike most lenders, we can talk to them evenings and weekends. If on a Saturday my clients find a house they want to make an offer on, I can call Liz or Bob and get a letter pre-approving the client for that specific house at the amount of the offer. Try to get a big bank, or even a local bank to do that they give you one pre-approval letter, and its usually for more money than you want to show a seller.
Closing costs can vary and the spending budget for the buyer is often very tight. On the spot we can get a closing cost estimate and the buyer finds out what his mortgage payments will be. And when my clients get pre-approved, I know there is an immediate follow up where the details a checked so my clients and I know they really can get financing, and the pre-approval has really meaning. The first step I will guide you in when starting your home-buying search is to connect you with a dependable lender.
Its not that hard to get financing. Unlike in the old days, you now have to prove your income, and your tax returns will be examined. But the FHA (Federal Housing Administration) will guarantee loans to buyers with credit scores in the low 600s with only 3.5% down (again, though, unlike the old days when you could borrow with 0% down!) which puts home buying within the reach of many more people. In this area, housing prices are so high who has 10% to put down on a $400,000 home? Particularly if cash is needed for other things…
For additional information on how to Avoid Problems with Mortgages and Banks in Ipswich MA or surrounding areas, contact John Wells at Wellsco Realty by calling 978-518-1481 or emailing firstname.lastname@example.org.