In addition to obtaining a good interest rate on the mortgage loan, it is equally important that the mortgage loan process be handled in a professional and efficient manner. This is especially important when the loan is to purchase a property.
My goal with every loan is the perfect transaction- fast, easy, predictable, and with no surprises.
To meet this goal, I have developed “Service Standards” that encompass the key elements of the mortgage loan process. Since being formally implemented, these Service Standards have been met on 100% of the loans I have closed.
It is not usual for the closing of real estate transactions to be delayed because of problems with the mortgage loan. These problems could be that the loan had unexpected closing conditions, loan documents were not delivered to the closing, or the money for the loan proceeds had not been received by the title company.
If the homebuyer is unable to close on the date set forth in the contract, the buyer is considered to be in default on the contract. When the buyer is in default, the seller has ability to cancel the transaction and keep the buyer’s earnest money deposit.
The financial impact of a delayed closing is not the only consideration. Moving is considered one of life’s most stressful events, whether the move is across the county or just across town. Could there be anything more frustrating than to have pre-planned the move, to have the moving van packed and ready to deliver your belonging to your new home, and not close?
In addition to the closing date, your real estate contract will have 2 very important deadlines that must be met in order to protect you, the homebuyer – the “Appraisal Deadline” and the “Loan Objection Deadline”.
The Appraisal Deadline is the date by which the appraisal must be completed. It is the last date by which the homebuyer can inform the seller that the appraised value (as determined by the appraiser) is less than the purchase price. If the value is less than the purchase price, the homebuyer has the option of canceling the contract (and receiving back the earnest money deposit) or renegotiating the purchase price.
The Loan Objection Deadline is the last date by which the homebuyer can inform the seller that the buyer is unable to acquire mortgage financing to purchase the property, and thus be able to cancel the contract and obtain their earnest money.
Unfortunately, mortgage providers often miss these key deadlines. The result is homebuyers have lost their earnest money deposit, overpaid for the property, or not been able to purchase the property because of the inability to obtain a mortgage loan.
You have probably heard about homebuyers who do not receive the final Closing Statement until they arrive at the closing. And then discover that there are hundreds of dollars of additional closing costs that were never disclosed.
Also, in most cases the homebuyer does not see the loan documents until closing. It is not unusual for the homebuyer to arrive at the loan closing and find out that the interest rate is higher than they were expecting. Or the type of loan and/or the loan terms was different than what was promised.
Unfortunately in both these situations, there is virtually nothing that homebuyers can do but accept the higher costs and/or different loan terms. Per the contract, they are legally obligated to close on that day. They do not have time to seek out a new mortgage loan from a different loan provider.
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