Yesterday one of my clients calls and says he has decided to go with his local bank because the interest rates on their Veterans loan is ¼ lower than anyone else,which is fine by me.I prefer you use a preferred lender because I know it will close then, but, still at least it is a local bank.
This is when the buyer drops a bomb shell on me telling me he only has 90 days to close on a home we haven’t found yet! I asked, “Does your lease end then and you are afraid of having to sign another one?” He informs me that, “No, it is because my bank charges a $250 application fee for Veterans loans and you have to close within 90 days or you will have to pay the $250 again to get a new pre-approval.”
“OK, so in order to get a pre-approval you have to pay them $250, and now we have to manage to find your dream home at a good price, do all the negotiations and close within 90 days?” He asked, “Is that aproblem?” I said, “No, but it means it’s going to really limit what homes you can look atand how good of a deal you are going to get, because now you have time lines that have to be met.”
Basically, this made it impossible to put an offer in on any kind of short sale or foreclosure that he may have wanted to look at, because if we do, there is a very good chance that he will lose his $250.
But,that really isn’t my problem with the whole situation… My problem is how anyone could do this to our Veterans. Our Veterans are the ones that gave us the freedom of speech, the freedom to conduct business as we do, and who made this country great, and you repay them by charging them a $250 fee? To me, this is just wrong and when I find out what bank is doing this to our Veterans, I will call them out on it!
Todd Clark (Principal Broker)