Why does it take a borrower walking away to have lender's reconsider their stance?

Question

I see it time and time again. Borrower gets declined on a loan due to a guideline from a lender. As soon as the borrower starts shopping it and finds a lender that can do the loan for them and they initiate the cancellation process, all of a sudden the lender can do the deal.

Why is this so common?

Nick Belsky · Answer

@Erik Estrada

I have literally never had that happen, not once.  Interesting.

Cheers!

Tyler Mcclean · Answer

I have no idea I find a home for all of mine. 😎

Erik Estrada · Answer

It could be that a lot of leads reach out to me when their lender drops the ball. I just think it's interesting how as soon as the client tries to leave, they have some miracle to get them the terms that they initially wanted in the first place...

Stacy Raskin · Answer

If a mortgage professional is a broker and experienced, the broker can usually find a home for most loans. The details matter but as far as why some professionals don't find a home for the loan until the investor is about to walk away probably comes down to various factors depending on the broker but some that come to mind are: workload, laziness, lack of experience and lack of lender contacts. Ultimately working with a mortgage professional that takes the job seriously and has experience and lender contacts will get better results.

Mike Grudzien · Answer

maybe some folks (lenders) just need to get their sh*t together in the first place.

Erik Estrada · Answer

Yea same here.

I am speaking more for investors that started the process with lender A, they decline and as soon as the investor cancels and goes with lender B, lender A all of a sudden can do the loan.

Why does it take a borrower walking away to have lender's reconsider their stance?

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