Case Example: A Disappointing Experience
I recently had clients, a couple very well qualified financially, who chose JPMorgan Chase, a large national financial services company, to obtain a mortgage for a new house. JPMorgan Chase was their lender for the house they’d been living in for ten years. And, the company offered a competitive interest rate. The loan officer they dealt with was on the west coast.
Usually, things go fairly smoothly. Not this time. Despite having over five weeks between contract ratification and when settlement had been scheduled for, settlement happened eight days late due to avoidable delays by JPMorgan Chase. Multiple times, JPMorgan Chase said “just one more day,” each time proffering some new, nonsensical excuse.
No one at JPMorgan Chase seemed to care at all whether my clients’ loan application was processed in time or whether my clients received satisfactory service. My clients weren’t treated like a family buying a home, but like a file to be moved around within the large JPMorgan Chase machine, without concern for timeliness or outcomes.
Thankfully, the sellers were patient. I kept them apprised, through their realtor, of the delays so they would know the problems were due to JPMorgan Chase and had nothing to do with my clients’ credit worthiness. Most sellers won’t break off a deal if takes a little extra time, if they’re confident you’ll ultimately be approved for a mortgage. But, sellers have that right ― so, securing your mortgage on a timely basis is critical and must always be a top priority.
What You Can Do
Potentially avoid disappointment by selecting a lender motivated to please you. You’d think they all would be. But, they aren’t, as evidenced by the case example above. Your best bet may be the local mortgage broker or banker whom either you or your realtor already knows well. If it’s someone you know, they’ll aim to please you because they’ll want to stay on good terms with you. If it’s someone your realtor knows, they’ll aim to please you because they’ll want your realtor to refer clients to them in the future, based on the consistently great work they do. For other factors to consider when selecting a lender, read Shopping for a Mortgage Loan.
Check in regularly with your lender throughout the process. An effective realtor will help you keep tabs on the process with your lender. However, it’s essential you always know where the process stands and what milestones remain before your loan can be approved and you can go to settlement. Ultimately, you’re the person the lender will be entering into a contract with ― and will answer to ― not your realtor.
If you begin to lose confidence in your lender, immediately escalate your concern. Don’t hesitate to ask to go up the chain of command if you feel the person you’re dealing with isn’t moving things along fast enough or isn’t able to give you clear and straight answers. Be professional, remain dispassionate, and be direct about what outcomes you expect.
If your lender disappoints, ask for a refund of at least some of your fees. Just be sure you weren’t the cause of your lender’s inability to deliver. Legitimate reasons for delay are many and could potentially include your failure to provide information your lender needed, accurately and on a timely basis, or doing something before settlement which negatively impacted your credit report. For more on managing your credit before settlement, read Getting a Mortgage: DOs & DON’Ts.