Tuesday I received a call from an agent asking me if I can get a VA loan done in 21 days Keep in mind - we have christmas- new years- and martin luther king day in those 21 days This buyer- who I pre-approved and have written at least 8 pre-approval letters for had finally gotten a home under contract-
The agent asked me if I can get this done- My response was best I can PROMISE is end of January and that was only if we can get take app Monday the 28th -
She said she would speak to the buyer - I did not hear back from her until this morning- Her response-The buyer is shopping for a lender who will commit to a 21 days closing
What would you do in this situation? Take it and pray for the best Take it and then let them know the appraisal is taking longer than you thought Be honest- knowing there is no way it will get done?
I would focus on my relationship with the customer and the rapport that I established during the pre-approval process. The Realtor has no business meddling and if they were more skilled with their negotiation skills they would have allowed more time. Some realtors will just push dates up so they can get paid sooner when buyer and seller could have agreed on a more reasonable date. I agree with the other posts and communicate that it is really the VA appraisal turn time that is the issue and all lenders will experience the same turn time. So the buyers decision is based on working with the right team. I would promise that we would have borrower approval within that time frame and full approval 2 days after the date the VA appraisal is received. I get the loan package out on weekends just to buy an extra day and have everything set for processing on Monday. In fact, most of our staff work weekends so if I submitted the file on Saturday we get a couple of extra days to work on the file. Our firm prioritizes purchases and we are known to complete a "Hero" deal.
Promise!? It's a mortgage application...the only thing you can "promise" is your best effort to get the loan closed as soon as possible. Even though you have already spent an inordinate amount of time on this borrower/agent (EIGHT pre-approval letters!), I would make one final effort to explain to them why 21 days is an unrealistic time frame, while again stressing that you will try and get the loan closed as soon as possible. If that doesn't work, I would wish them good luck and assure them that if they try hard enough they WILL find a lender willing to lie to them in order to get the deal. If you take this deal while lying about getting the deal done in 21 days, you are just going to wind up getting trashed on a Realtors only social media board about how you cant get loans closed on time.
I would take a loan ap, sell them on my UWM conquest program and let them know we now have 12 extra lock extension days we can use if we run past 21 days for unforseen reasons that none of us can control...i.e. slow appraisal, appraisal that requires a work order or something they questioned on an inspection...but right now Conquest and Quicken have amazing incentive programs and pricing and can get things done sometimes without an appraisal with an appraisal waiver and in under 15 days too! (not daunted by this request!) I have gotten purchases and refinances done during covid in under 21 days a lot this year. gayle@creeksidem.com NMLS#120728. Just need to set expectations and have a dialogue. Take the deal if you have a good team.
I just re-read the scenario after posting/ on VA with an appraisal by VA our VA appraisers are working pretty fast, so i would still take the deal and explain that we are under the constraints of the appraisal and how long it takes. Everyone else lending will be under something very similar, so why lose the deal; they need to be realistic and with that much time vested in this borrower with 8 prequals, be very frank to them and the realtor and with a good team know you can come very close to the flag with all 3rd party entities cooperating and with a very good team and team work. :-) People, the art of the deal here and communication is key.
Don’t you already have an app? On the broker side you could possibly pull off if the appraisal makes it in time. No one can speed up the appraisal process so educate them and get the deal.
Thanks Tom- I did explain that we are a direct lender and that the appraisal is really the issue since it's VA and we can't "rush" it like a conventional or FHA appraisal-
But the key issue is will another lender take it and hope for the best or is it best to be honest and make sure your word is your bond...
If you cant do in neither can anyone else. Honestly He needs to get his Documents signed so that you can order the appraisal and get that going as that is what takes the longest in the time line. Promising to close any government loan that may need repairs or a re-inspection isn't a good idea. However if all goes well you should be able to meet it. what is your ratio of on time closings ? I am very blessed in my region and VA appraisers are THE BEST here in Middle TN. I would Rather do a VA loan than any other.
I would focus on my relationship with the customer and the rapport that I established during the pre-approval process. The Realtor has no business meddling and if they were more skilled with their negotiation skills they would have allowed more time. Some realtors will just push dates up so they can get paid sooner when buyer and seller could have agreed on a more reasonable date. I agree with the other posts and communicate that it is really the VA appraisal turn time that is the issue and all lenders will experience the same turn time. So the buyers decision is based on working with the right team. I would promise that we would have borrower approval within that time frame and full approval 2 days after the date the VA appraisal is received. I get the loan package out on weekends just to buy an extra day and have everything set for processing on Monday. In fact, most of our staff work weekends so if I submitted the file on Saturday we get a couple of extra days to work on the file. Our firm prioritizes purchases and we are known to complete a "Hero" deal.
Promise!? It's a mortgage application...the only thing you can "promise" is your best effort to get the loan closed as soon as possible. Even though you have already spent an inordinate amount of time on this borrower/agent (EIGHT pre-approval letters!), I would make one final effort to explain to them why 21 days is an unrealistic time frame, while again stressing that you will try and get the loan closed as soon as possible. If that doesn't work, I would wish them good luck and assure them that if they try hard enough they WILL find a lender willing to lie to them in order to get the deal. If you take this deal while lying about getting the deal done in 21 days, you are just going to wind up getting trashed on a Realtors only social media board about how you cant get loans closed on time.
Agreed !!! to me the agent knowing I keep my word is the most important issue - more important than any deal
I would take a loan ap, sell them on my UWM conquest program and let them know we now have 12 extra lock extension days we can use if we run past 21 days for unforseen reasons that none of us can control...i.e. slow appraisal, appraisal that requires a work order or something they questioned on an inspection...but right now Conquest and Quicken have amazing incentive programs and pricing and can get things done sometimes without an appraisal with an appraisal waiver and in under 15 days too! (not daunted by this request!) I have gotten purchases and refinances done during covid in under 21 days a lot this year. gayle@creeksidem.com NMLS#120728. Just need to set expectations and have a dialogue. Take the deal if you have a good team.
I just re-read the scenario after posting/ on VA with an appraisal by VA our VA appraisers are working pretty fast, so i would still take the deal and explain that we are under the constraints of the appraisal and how long it takes. Everyone else lending will be under something very similar, so why lose the deal; they need to be realistic and with that much time vested in this borrower with 8 prequals, be very frank to them and the realtor and with a good team know you can come very close to the flag with all 3rd party entities cooperating and with a very good team and team work. :-) People, the art of the deal here and communication is key.
Don’t you already have an app? On the broker side you could possibly pull off if the appraisal makes it in time. No one can speed up the appraisal process so educate them and get the deal.
Thanks Tom- I did explain that we are a direct lender and that the appraisal is really the issue since it's VA and we can't "rush" it like a conventional or FHA appraisal-
But the key issue is will another lender take it and hope for the best or is it best to be honest and make sure your word is your bond...
Thanks everyone for your comments
I ALWAYS will be honest - regardless because to me reputation and honesty is more important than any one deal.
Unfortunately in our industry there are MANY originators who would just say sure and hope for the best.
THE DIFFERENCE IS A LESSON
To be successful - this should NOT be just a transactional business but a relationship business
If you are buying leads or posting on social media etc than you are doing this business as just transactional -
WHen you speak- teach classes- become the celebirty- and are honest you build a long and profitable career and LONG TERM relationships
If you cant do in neither can anyone else. Honestly He needs to get his Documents signed so that you can order the appraisal and get that going as that is what takes the longest in the time line. Promising to close any government loan that may need repairs or a re-inspection isn't a good idea. However if all goes well you should be able to meet it. what is your ratio of on time closings ? I am very blessed in my region and VA appraisers are THE BEST here in Middle TN. I would Rather do a VA loan than any other.