I just attended a Marin based real estate networking meeting where a local realtor asked, " is this a buyer's or seller's market?  When someone responded that it was a "Lender's Market" ,more than a few local realtors shared some stories that would give anyone pause applying for a mortgage.
      The moral, or point to this post is how important it is to work with a reputable LOCAL lender in today's real estate market. Mortgage Broker's and Lender's are famous for telling you at the front end that they can make it happen. Unfortunately, that's not proving to be the reality. The real estate web site "Active Rain" ran a post recently: "Why Loan Officers Kill Deals, Cost You Time, Cost You Money, and Anger Customers." In this article they list the 3 most common lies among lenders today are: 1.I'm as busy as I've ever been   2.No problem, I can get that done...and,   3.We can close in two weeks.

       Recently I sold a house in Northern Marin.  The day before closing, the lender who was in Southern California decided to do a last second desk review appraisal for the purchase ,and dramatically lowered the value of the house?  From the time of the original appraisal, done by a local appraiser, there were new comparables/comps to suggest the original appraisal had undervalued the property. None the less, the underwriter in Southern California required that the buyer put in another $60,000 towards the purchase, or they would not fund.  The lender had the buyer over a barrel.  The lender knew the buyer's finances, and knew they had the where with all.  The lender also knew the buyer had removed their contingency for loan approval, and was legally obligated to close this purchase, or the buyer would lose the 3% deposit they'd already put into escrow. The buyer was not happy.
       In the beginning I had recommended a local lender to the buyer.  The buyer decided to go with an old friend that was a mortgage broker in Southern California.  If we had gone with my recommendation we could have avoided all kinds of problems. Most importantly, we could have worked with a lender that understood Marin County Real Estate, and Marin Real Estate property values.
       To be redundant, choose a local Mortgage Company, Mortgage Broker, Lender, Bank, or Credit Union.  Expect problems if you choose someone out of Marin, including online lenders with little or no experience here locally.
       Whatever choice you make, I recommend that you include in your loan contingency removal the following language: "Buyer hereby removes the loan contingency subject to the following: Seller and Buyer agree that if, after the removal of the Buyer's Loan Contingency and without fault of the Buyer -  a change in the loan commitment or lowering of appraisal by Buyer's Lender, Buyer may terminate this Agreement and shall be entitled to the return of the Buyer's deposit."
       Navigating the Mortgage Maze has never been more difficult.  If you'd like to be refered to a reputable local lender please feel free to email me, or give me a call.   MDLomas@gmail.com   or 415-789-7777
      
     

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