a week for no reason, thereby costing her more than $1,000 in interest expenses and other associated expenses. And for what? Things all went wrong for one simple reason: the loan officer did not let the agent know about the special survey requirement. The delayed closing had nothing to do with anything the buyer did and was not the result of an error with the seller. Neither party caused the delay and expense, but the agent is the one who got hollered out. The whole problem was the loan officer. He did not let the agent know ahead of time about the special survey requirement. The loan officer’s negligence caused the whole stack of cards to come tumbling down. Everybody had to bear the burden of the lender’s incompetence. As a result, the agent was extremely unhappy with the lender. He does not work with that lender any more and would dissuade a client from using that bank.
Lender Horror Story #2
We noted the difference between pre-qualified and pre-approved loan status earlier in this book. To refresh you, a prequalification letter is when the lender simply checks the buyer’s credit and asks basic questions. There is no verification. A prequalification statement is just the tip of the iceberg, a brief investigation into the borrower to ensure that they aren’t going to be immediately rejected for a loan due to some sort of massive issue with their credit or finances. A preapproval is more certain. A borrower with a preapproval letter is a borrower whom — assuming the house appraisal and inspection pass muster — the lending institution will approve their loan. With a preapproval, the lender verifies the prospective buyer’s income, down payment, and down payment source. The
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