Top 10 Mistakes When communicating with Lenders

By: WHBSolutions

One of the major reasons many Real Estate Agents find it difficult to negotiate with a lender is because they do not imply the 3Cs method of effective communication. Be Clear, Be Concise, Be Courteous. Through feedback from Real Estate Agents, Loan Modification and Short Sale Negotiators, the following list has been identified as the Top 10 Mistakes When Communicating with a Lender.

1) Forgetting your question – Be prepared when you call the lender. Write your questions down on a notepad to ensure you don’t waste your time or the lender’s time and to avoid having to call them back. Hold times can be long and getting through to a negotiator on the phone is not always easy.

2) Not being clear with your question – Lenders do not have time to figure out what it is you are asking. Be clear with your question and don’t try to beat around the bush for information you know they may not provide to you. Also, do not ask obvious questions that you should already know.

3) Not being concise with your question – There is no need to embellish or provide a long winded explanation to the lender. Be straight to the point and you will find the lender will respond in the same manner. The more efficient you are, the more effective the communication will be with the lender.

4) Not being able to answer a question from the lender – Be sure you know the details of your transaction in and out. Getting a hold of the lender is not the easiest thing, so when you do get through, make sure you are well prepared with any information they may need.

5) Having incorrect information – When collecting documentation for the short sale submission, double check to make sure you verify all information. Any mistakes will just delay the approval process.

6) Being Rude – During these stressful times, it is very important to keep your cool. Being rude and demanding things to happen will not make things move faster. Lenders will be more accommodating to your needs if you are courteous to them.

7) Showing frustration of impatience – Your buyer is pressuring you to hurry up and get an approval. Don’t let them push you to show your impatience when calling for status updates from the lender. If you set the right expectations up front, your buyer should know that the process is in play and it will take some time to get an approval. Provide your buyers with frequent updates to keep them calm.

8) Being hard to reach by phone or email – Lenders don’t have a lot of time to keep trying to get a hold of you. Be responsive to every call or email they send to you. If they see you are on top of the file, they will respond in the same manner.

9) Telling them how to do their job – Never ever tell the lender what they should be doing or why they must accept your offer. This only offends them and will make negotiations tougher. If you think something should be done a certain way, explain it as a suggestion and that it would improve the whole transaction, aiding to a successful solution.

10) Arguing to win a point – Do not argue with the lender as to why they must take an offer or that the information on their systems are incorrect. Sometimes you may call and get different status updates or information may not have been communicated properly. Keep your cool and help them to understand the problem.

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WHB Solutions is dedicated to teaching both investors and real estate agents how to properly do short sales. Having a winning home buyer solution is critical to short sale success and short sale education! Visit our site now for a free report on getting short sales approved!

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