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Overland Park/Olathe Home Buyers – Does the Lender You Choose Make a Difference in the Results You Get?

Congratulations to my recent buyers who closed on their dream home in Olathe. I met them over a year ago when they interviewed me to see if I would be a good fit to sell their home in Olathe and help them buy a new one. And now that it’s all over, thank God they trusted me to lead them to a couple of successful transactions. They could have ended up with very different results!

In the beginning…

A year ago we started working together on a home remodel project that took a few months…a few months more than any of us expected. My sellers moved into temporary housing in order to remodel their long time family home. I worked with them and helped them turn their tired, outdated home into a gorgeous redo complete with granite, mosaic backsplash and stainless appliances in the kitchen, two new bathrooms as well as fresh paint, flooring and carpet. When we were done – it was a masterpiece! Nancy told me that when she came to her house for the first time after the remodel, that it was “beautiful.” I remember saying to her, “I hope you’re not planning on moving back in!” She promised me that would not happen. The house sold the first weekend it was on the market and received two offers!

Step 2 – the buying process

Months later it was time to find them a new family home that would suit their lifestyle. Nancy reached out to me and told me they were finally ready to start looking for that perfect home. She had done everything she thought she needed to do, including getting “pre-approved” by her lender for a maximum home price of $325,000. Nice! My first thought was they should be able to find the perfect home with everything on their wish list for that price.

They had a large family and had many specific needs. I listened intently to why things were important to them and we found the perfect house…wrote the offer and ironed out the details. I was on my way to drop their earnest money check off at the title company when I received a frantic phone call from Nancy. She had heard from her lender that unfortunately she was not going to be able to buy that home. She would need to find a home priced around $275,000. What??????? I was sitting in my car in the middle of the parking lot of the title company listening to what she was telling me. Many thoughts were running through my head. Her lender had told me “she was good to go for $325,000.” But come to find out, her lender had prequalified her and not preapproved her. So, once the lender started putting her through the system, she discovered some things that weren’t going to work.

I asked Nancy if I could have my lender give her a call. It was late Friday afternoon and I could tell she was devastated. As soon as I hung up the phone, I called my go-to lender that I’ve worked with for many years. I told him what happened and we threw a couple of ideas back and forth. He called her and felt confident from their conversation that he could make things happen for the $325,000 price.

The $325,000 house had some inspection issues that we weren’t going to be able to resolve so my buyers walked away from that house. A week or so later, we went back to their second favorite (or maybe it was their first) and made an offer on that one. By that time, my lender had worked out all the details on their loan, had sent them through underwriting and they were fully pre-approved!

The end result

They recently closed on their dream home where Nancy and her family enjoyed their first Thanksgiving in the new place. The price? $355,000. The end experience – priceless!

The morale of the story is…does an inexperienced lender have the knowledge, expertise or thinking outside the box mentality to be able to provide the best service to the customer? Or was she just an order taker, filling in the blanks on the paperwork? She obviously had failed to include all of their income when they applied for their loan – almost preventing them from buying the home of their dreams.

How your lender makes a difference

If you are thinking about buying a house, it’s important that your lender have all the facts and dig deep to understand your overall financial situation in order to get you pre-approved for your loan. At the end of the day, some lenders are just better than others and it goes to show that experience does count when buying a home.

FREE Home Buyer Workshop

You can start searching for a home here. But if you want to know how to have a better experience when buying a home in Overland Park or Olathe, join us for our next FREE Home Buyer Workshop and we’ll guide you through a great stress free process and make it fun to boot! You can sign up here. Or if you know someone thinking of buying a home in 2015 and care about their experience, please do them a favor and share this post with them.

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