Monday, July 21, 2008
NIT-PICKING LENDERS PUSHING BUYERS AWAY
We all know what a mess the lending institutions are in. IF YOU DON'T then you must have been on an island somewhere or living under a rock the past few years. WE KNOW TO WELL. That said, it seems to me that instead of trying to fix this mess, lenders are instead taking it out on the GOOD buyers. By this I mean that they (lenders) are NIT-PICKING THEM to death until they (BUYERS) say "Forget it! If you don't want my business, I'm going elsewhere."
One of my escrows is with a "dream" buyer." (Yes, they are still out there). The kind of buyer that is pre-APPROVED before we even sat down to write the offer. The kind of buyer that has, and always has had, GOLD credit. The kind of buyer with a bank account fat with $$$'s. The kind of buyer that is putting down over 40% at the COE. Now, face it, we aren't getting those kind of buyers everyday!
Our escrow was moving along beautifully: inspections are done, repairs made, pre-lim accepted, appraisal a breeze. We're down to the last few days...waiting for the DREADED loan doc's. And then the NIT-PICKING begins. A laundry list of "conditions" pop up. My buyer quickly provides the information needed to eliminate those conditions. Okay, where are the loan doc's? Ahhhhh....more conditions. More NIT-PICKING. It has been never ending! (Yes, I KNOW there has to be a paper trail).
At this point my buyer is extremely upset, to say the least. He feels like this NIT-PICKING is a slap in the face.
I want to know WHAT IS GOING ON WITH LENDERS? No, I don't want to hear about the mess WE'RE in, again. I'm aware, as is the nation. I want to know why they (lenders) are pushing away the GOOD buyers, because of the buyers who got bad loans a few years ago and are now losing their homes? Why make everyone suffer? Don't you (Lenders) need to start lending money to GOOD buyers to get this MESS turned around?
LENDING INSTITUTIONS: Don't take this post as a "blame game" on lenders only. I've always felt that the current homeowners who bought into the crappy loans are also guilty. Though most people DON'T read the fine print on IMPORTANT documents--THEY SHOULD! Perhaps, if they had, many homeowners wouldn't be in the trouble they are today. If it sounds to good to be true... well, it probably is. As I've said before, I don't have a client who bought into the "no-down, get into a home at any PRICE" frenzy." AND I AM SO GRATEFUL.
So back to the question at hand: WHY ARE LENDERS MAKING IT SO DIFFICULT FOR THE GOOD, QUALIFIED BUYERS?
WHO, WHAT, WHERE, WHY, WHEN AND HOW ARE WE GOING TO FIX THIS MESS???
For your Lake Arrowhead Real Estate needs: Kathy "Kat" DeLong, REALTOR.
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