Big banks vs brokers, who is closing on-time in 30 days??!!!
A month ago we won a short sale with BofA. So we decided to go with BofA for our loan because we assumed a large direct lender, big bank could easily deliver in 30 days! We were wrong. I'm really ticked they can't make the 30 days and are charging me 1/8pt fee to extend. Perhaps I'm not being reasonable, but I delivered all of our paperwork on-time, and our file is very very clean. We are well qualified. Those darn underwriters are taking forever for final loan docs. Many days ago, we got approval with conditions(basic stuff), so there was plenty of time to get the loan docs out. Sure it's a multifamily rental property but all of our ducks are lined up. It seems to me their underwriting staff is incompetent or understaffed or both! Why should I be penalized if they can't get their act together? I've been greatly inconvenienced by not making the closing date (it's more complicated to work out seller/tenant transfer/util switchover/etc) and this is giving me heartburn. Are the big banks closing loans on-time for 30 day locks?What's your experience? by slloyd_546_118 from San Diego, California. Sep 20th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
I have said numerous times here on Lender411 that you should use a Mortgage Broker rather than a Bank... The frustrations your experiencing is typical of what I hear every day... Even when BofA was fully staffed, it still took 45 days to close a loan... By using a Mortgage Broker, you would have been able to close on time, less "Red Tape", and overall smoother transaction.. not to mention it probably would have cost you less.. probably too late now, but for your next property, Develop a relationship with a local mortgage broker... you wont be disappointed... WilliamAcres.com
Deborah Garvin (loanmonarch)
#497 ranked lender in California - 53 contributions
I am working on my second "bail out" of a BofA purchase loan in the past 30 days. They simply are not performing at closing loans on time...and, add to the fact that they are actually making money on the delays and extensions and you have to wonder if they have any motivation to get any better.If you want to close loans in a timely manner I would avoid any of the "big banks"; however, I would not want to be working as a broker in this market as there is just too little control. My company is a mortgage bank: We originate, underwrite and fund loans in our own name. I have far more control than a broker because I can navigate and accelerate the underwriting process as needed. Our average purchase closing is still under 30 days...even with the acceleration of the refinance market. The fact you are buying a multi unit should make no difference as long as it is a 1 to 4 unit property.
Gregorio Denny (GVDenny)
#257 ranked lender in California - 380 contributions
Call me; I'll get it handled for you.
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