I was so proud of my clients recently. They told their bank to take a hike and paid cash for their house.
It makes me wonder how the home mortgage loan process would change if all buyers could fire their lender at the last minute.
With every buyer client I have I spend a lot of time preparing them for the never-ending, very frustrating, overly chaotic experience of getting a mortgage.
This particular client was purchasing a $253,000 home and was borrowing just $60,000 to do it. Still they were asked to provide an endless supply of pay stubs, bank statements, insurance forms and binders, explanations for deposits and transfers in their accounts, and whatever other document the bank could think of at the last minute. In fact, my clients endured several requests from several people on the loan team asking for the same documents multiple times in less than 30 days of working with them.
The bank also asked me to provide the same portion of the purchase contract, and I did, at least four times. Three days before closing they required pictures to prove a repair was done, after a licensed contractor had already provided a letter that stated the repair was done.
This was documentation overkill at every turn. It did not pass the common sense test.
Meanwhile the bank wasn’t returning the buyer’s phone calls or addressing concerns about why the wrong numbers were showing up on the proposed closing documents.
Unfortunately, for 99% of people pursuing a mortgage, the loan is the only option they have for buying a house. They must accept the constant barrage of phone calls and e-mails and demands in order to become a home owner. I wish there was something I could do as a REALTOR® to ease the pain or simplify the process for them.
I would like to think this buyer rattled some cages at the bank. I would like to believe that loan team learned something about customer service and spent the last week or so reviewing their systems to make the loan process a little easier on the next buyer. But my hunch is that they shredded the file and moved on to the next one. Or worse, they added some sort of cancellation clause to the loan paperwork to complicate things even more.
Click here for other home mortgage nightmares: