I’ve been having some of my clients complain about lender delays that are costing them quite a bit of money. I just sold a home for a family that’s relocating to Ohio. We managed to sell it in five days and the buyer had all the credentials in place. My sellers went ahead and put an offer on a home in Ohio and they were working towards a closing and getting their moving trucks set up. They were even turning off their utilities in their home!
Then got a call from the lender saying their buyer in Grand Rapids couldn’t close on time, and this affected the family’s other transaction in Ohio. This is a terrible domino effect, and it’s sad because I see it all too often.
Sometimes the problem is lender-related. They do drop the ball sometimes, but we can’t place all the blame on them. If a lender is not getting a fully pre-approved buyer this can cause issues, and if the lender misses or doesn’t properly account for the buyer’s debt obligations, these things can all cause issues. The lender must consider the other debts of the buyer, because these can all throw off the debt-to-income ratio and disqualify the buyer. Lenders need to operate with a sense of urgency, and it’s your agent’s job to ensure that.