by Laura Kocum
on Tuesday, March 5th, 2019 at 6:07pm.
The Mad City Dream Homes team believes local lenders are the most ideal partners to help you with your home purchase. Why? It’s because they often have more flexibility and a quick turnaround time, which can be the keys to a successful real estate purchase in the current, fast-paced market.
The team has worked with all kinds of lenders, and has learned a few things along the way. “I’m always amazed when we have to chase down a loan commitment,” says Chris Venden. This has happened when working with lenders that aren’t local. They don’t always understand the quick turnaround needed in the Madison area, and they sometimes have multiple layers of red tape that need to be worked through before they can make a commitment. "There is nothing more frustrating than missing out on an offer because the paperwork couldn't be completed in time," Venden said.
When working with local lenders, the team has found that they can often get a needed document quickly, or even drive over to pick it up in person. And, the lender is often available to help troubleshoot a financing issue, and think out-of-the-box in order to make a transaction work.
Shelley Lazzareschi saw a sale delayed once, because the lender hadn’t kept up on the details of the transaction. “The buyer was aware that the home they were purchasing had a defect. But the buyer had researched it, spoken with the seller, and agreed to move forward with the sale. The lender was notified, but failed to read the details until it was time to close. Because the lender hadn’t paid attention, they ended up stopping the sale, at the closing table. This is why we prefer to work with local lenders. They talk with us about the sale, help us troubleshoot any surprises, and come to the closing table familiar with the transaction,” she said. Outside lenders often know less about the purchase, and may have relied on teams out of state to read the documents before closing.
“If you don’t have a good rapport with the lender, transactions can become really painful,” says Tammy Steiner. "It's so much easier when we can discuss the transactions up front, and make adjustments along the way."
“I think people would be shocked to know how much negotiating we do behind the scenes,” said Maureen Moran. While much of this happens with the other agents, the lender can also be part of the discussion. For example, “A local lender understands when an appraised value doesn’t match up. They can discuss which comparable properties are considered, and help with creative lending options to bridge a gap,” Moran says. “And that out-of-the-box thinking can be so valuable!” says Venden. "I love when we can come up with creative solutions to make a purchase possible."
The Mad City Dream Homes team has a list of preferred, local providers. They are happy to refer their trusted lenders to buyers, and to talk through those decisions up front. To learn more, visit their website or contact the team today.