Last Minute Loan Denials
I had heard about a disturbing trend and only recently experienced it. Imagine that you have loan approval and commitment in hand and the night before you are scheduled to close, the bank pulls the loan…
Yeah… WOW!
Some of the big National Banks, this one was Wells Fargo, have been pulling this lately as they face their internal problems. I don’t know if this is because they’ve been so lax in writing bad loans lately, but regardless, what a blow to the buyer.
Once the loan was denied, the bank said they’d reconsider with additional documentation that the buyer had available, then abruptly stopped returning any phone calls from the buyers, attorneys, and me. What made this even worse was the fact that the loan originator’s office wasn’t local so we couldn’t demand answers nor a response of any kind by going to the lender’s office.
This is why I always recommend LOCAL lenders!
You get more personalized service, and more importantly, any glitches that come up are usually handled with much more consideration for the buyer. Plus, most lenders don’t want me knocking on their office door if they stop returning phone calls.
Charissa Pemper, Boston REALTOR®
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
