their patience as they had another property they were contingent on buying from the close of this transaction. There were 3 legs to this transaction which is now affecting other buyers and sellers. This became a nightmare. Everyone was upset. The buyer and seller were upset with their respective agents for keeping them in the dark, and the agents were upset with the loan team for not informing them of the requirements. Everyone was pointing fingers. I ended up having to close the loan for the buyer because the other lender could not perform. The buyer was upset and the seller was upset, both agents on this transaction were upset and it was all unnecessary if the buyers had chosen the right lender. Furthermore, I was even able to provide better terms of the loan than the other lender, and I was able to close within 10 days. As you can clearly see, if you don’t have reliable and quick communication with a lender, the transaction can turn ugly. The loan is the most important part of the deal. The lender must always and be willing to communicate with you and all parties.
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
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