Logan Utah Mortgages and Real Estate: Mortgage Logan 1/8/2010: Communication is key to a pleasant mortgage transaction

I've heard some mortgage horror stories lately from borrowers that came to see if I could help them after their horrendous experiences.

         True Story #1

 This borrower had gone to one of the "big banks" in June of 2008 and did a loan application for a refinance to take some cash-out for an investment property that he wanted to purchase. Initially his loan application was approved and the loan officer moved forward with the process (i.e. ordering an appraisal, title report, collecting necessary documentation, etc.). After 4 months of being jerked around, the loan officer not returning phone calls, and processors telling him inconsistent stories of why it was taking so long, the borrower came to me and we closed the loan in 3 weeks. He was a very solid borrower and it was a very smooth loan transaction.

        True Story #2

Another borrower who I recently helped was recovering from the disappointment of losing the opportunity to purchase a home that they wanted because they found out on the day that they were suppose to close that their loan file had been denied because they had a late payment on their credit report. This was after the fact that the loan officer had issued them a pre-approval letter, collected a $400 check for their appraisal, and told them that everything was on schedule to close on time.  Oh...and they lost their $500 earnest money also!

These are horror stories that should never happen or even get close to happening! To me it seems that the problem in each of these cases is that the loan officer was either too scared to tell the borrowers and Realtors the truth about the loan process or too lazy to communicate with everybody.

I believe that communication and truthful communication are key to a smooth loan transaction, whether it be with the borrower, escrow agent, or Realtor. Something that has helped me with this communication is a software program that I purchased which helps me communicate with everyone involved in a loan transaction.

COMMUNICATION IS KEY

No matter how experienced a loan officer may be, there are just some things that occur in a loan transaction that can't be anticipated. When these things come up it's key that everyone involved be made aware of the situation immediately, so that it can be remedied.

I've also realized that loans go so much more smoothly when people are informed of what is going on. That's why I purchased a software program which allows me to notify everyone involved in the transaction when the status of the loan has been updated (e.g. credit report pulled, loan locked, appraisal received, conditions received, etc.,etc.)

The image to the right is an example of the emails that I will send to the listing agent, the buyers agent, their assistants, the escrow agent, the home owners insurance agent, the borrowers, the sellers, my processor, and me (I like to know that it was sent), and anybody else that might need to know how the process is going.

I can also give certain individuals access to a password protected website where they can log-in and view the appraisal, loan docs, good faith estimate, and any other documents that I choose to upload.

I have received great feedback for this service and I feel like it is something that sets me apart from my competition.

The fact is that it's not hard to communicate and it just takes a little bit of effort. But this little bit of effort can make the difference between a rocky and a smooth transaction.