Here’s a real-life example out of my own experience of why it’s so critically important for your lender to pay particular attention to communication throughout the entire process from origination to closing. The listing agent had me cross qualify the buyer. I do this as a service to my agents to insure their sellers they are choosing the right buyer for them. This doesn't just mean the qualification of the buyer, but it also means the communication of the lender. In this case the buyer was using a friend of their aunt who was an out of state lender. The communication from the very beginning during the cross qualification was terrible and uncooperative. The listing agent was concerned but presented all offers to the seller. The seller liked this young couple and chose their offer regardless of the red flags. The property was a small condo, and the buyers were first time buyers. They were well qualified, however the lender was not. Even though they were licensed in our state, they were far from knowledgable with the guidelines here. The condo was unique and all along the lender told everyone there wasn't a problem. Until they came 2 days before closing it turns out the lender needed "one more thing" from the HOA. The lender pointed the finger at the HOA saying they were the ones causing the delays. Even after they received that "one more thing" the lender needed to "approve the complex" and this had to go through many hoops and departments. After the lender asked for their 2nd extension the listing agent contacted me to run by the scenario of the complex. I checked with a few of my lenders, and the complex was approved by Fannie Mae/Freddie Mac and even FHA so there shouldn't have been a problem.
All contingencies had been removed and the seller was losing
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