Profile picture for Gerri Reeves

What do you do.....

When a lender denies your client in the 11th hour?   That morning the lender had everything approved....and then I get a call from my very upset client (buyer) they denied him!!! WHAT??? There were some deposits that could not be traced....really you are just now figuring this out!!  So of course I call the lender...they don't want to talk with me the Realtor, I am not their client.  Well now I know I will NEVER refer my clients to the lender (large bank).
  • September 25 2013 - Indianapolis
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Answers (9)

Profile picture for Gerri Reeves
Thank you all for your encouraging suggestions....I do appreciate all the good feedback. As a service to my clients right off the bat I suggest 3 lenders and 3 home inspection companies....I know my buyer wish he would have taken my advice.  So to report back to you all....this buyer is reapplying with one of the lenders I suggested...local of course.  She has most of the info she needs to forward right to underwriting.

You know how you have some really great clients that you really enjoy working with and for....this couple are those clients.  I really hope and pray for the best for them.

Thank you all!
  • September 26 2013
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Profile picture for SoCal Engr
"When a lender denies your client in the 11th hour?   That morning the lender had everything approved....and then I get a call from my very upset client (buyer) they denied him!!! WHAT??? There were some deposits that could not be traced....really you are just now figuring this out!!"

This may (or, may not) have been a surprise to your client. Personally, unless everything is by-the-book, I have not had great success with banks or credit unions. Then again, I've also heard of many scenarios where consumers do stupid things (like making a major purchase mid-loan, opening a new credit line, trying not to fully disclose and hoping "things will be okay", etc.).

All you know is your client's application was denied and they're upset. What you don't, and may never, know is how culpable your client was. Personally, I find it hard to believe that untraceable deposits popped onto the radar in the 11th hour. The lenders I use are very good about getting to me with any issues...they want the loan to close so they can get paid.

"So of course I call the lender...they don't want to talk with me the Realtor, I am not their client."

Actually, kudos to the lender. As a consumer, I don't want REAs involved in my mortgage dealings...unless I ask them...which I don't. It's also a reason why I like to find my own lender, I don't want a lender who's long-term interests with a REA may color their interactions with me.

It may be frustrating to not have direct access to the lender, but this is where the vaunted "educating my client" process could have kicked in. It is your clients responsiblity to deal with the lender, but you definitely can make sure they understand how the game is played...and the consequences of tweaking a rule...intentional or not.

"Well now I know I will NEVER refer my clients to the lender (large bank)."

As most any lender (or REA?) will tell a consumer, "it's the person, not the organization". I have had one really good experience with a big bank, but the experience was with a person who knew how to cut through red tape and maintained an open line of communication with me.

Even though I am not in the RE biz, when I refer someone it is always to an individual...not an organization.
  • September 25 2013
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Profile picture for LonnieMintz
I always recommend three to four local lenders/mortgage brokers, with proven track records of successfully closing even the most difficult of loans, to my buyers.  My local lenders almost always provide superior customer service compared to the large banks. They answer their own phones and are in constant contact with their clients.  Ultimately its up to my buyers to choose who they wish to work with, but many clients don't realize they have options.  Buyers who have been pre-approved by one of the large banks, and first time home buyers, are great examples of this.  Best of luck in the future!
  • September 25 2013
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I understand your frustration.  A major NY based company told my client and me that they would be rushing to close in a 45 day escrow.  My clients almost lost their deposit and the house because it took them 55 days to close.  Then they almost didn't approve the loan, saying the documents they have on file (sent in the day the buyer signed the contract) were too old to use and he would have to re apply.  I advised the buyer from the beginning that I would look at a couple companies, but he's an older stubborn guy and he just didn't want to. Made his mind up and that is the way it was going to be.

I have a lender that has closed 2 loans in 14 days.  No problems.
  • September 25 2013
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Oh, my! Yes, Gerri, local lenders are the best way to go. So sorry to have this happen to you!

  • September 25 2013
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Large banks are not always the best route for borrowers. It's great that you are starting to encourage buyers to seek out other lenders as well. Lenders outside of banks are great options because they an offer great service and products. So please continue to support other lenders as well!

If you have any other questions about lending or if you have a client that needs a loan feel free to contact me!

Good Luck!
  • September 25 2013
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I have had this happen usually it is with a job change when they did verification or bounced checks on the final review, credit score drop on the final pull. One was an employment verification that was sent back incorrect the day before close (it was eventually fixed 3 days later).
  • September 25 2013
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Gerri, sorry to hear about this situation.  I wish their was something you could do.  Would a gift from a family member work? You may have to re-work some other items, but it could provide a possible solution for deposits that cannot be traced.
  • September 25 2013
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Profile picture for Gerri Reeves
I provided my buyer with a couple of local lenders....that want to provide the best customer service to their clients.  Local lenders are the best way to go.
  • September 25 2013
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