All Forum Posts by: Account Closed

Not about wasting lenders' precious time, because #1 a lot of their employees could care less if a loan funding is delayed. #2 they're not the one's with all their belongings in a truck headed to another city.

It's about avoidable delays in the loan process, whether it be thru Bank of America or ABC Mortgage Lender, that could have a costly impact on the "Consumer/ Borrower" by simply doing a simple round up or down of a few bucks.

@Joe Splitrock, okay, if you're so sure of your view is right, then let's email 10 random lenders and get their responses, you can pick the lenders.

Send me a PM and we'll both be on an email with the question sent to 10 lenders and we can report our findings here on the thread.  

@Matt K., I'm not saying that you should not bid with a round number, though $2.00 on a 3/4 million dollar home is ridiculous, but when the deal is reached and before all is signed, simply adjust to a round number.

This is about as narrow minded of an argument as one on wanting the qualification letter to match a lowball offer!

https://www.biggerpockets.com/forums/552/topics/557953-negotiate-from-a-position-of-strength

Like arguing with people who insist that the world is flat.  

The mindset of those who are not in the mortgage industry amazes me at how out of touch with the inner workings at lenders they can be.

Okay, then don't round up or down, let that oddball number fly and complain like crazy when closing day comes and goes!

But I'll bet most reading this post will round up or down for now on!   

Of course you see it all the time, but it's a simple, no brainer adjustment to the nearest 100 to avoid potential delays.

But these are not delays that realtors or consumers hear about, they just experience the end result in closing days delays that were in part do to the time and effort it took along the loan process to get an appraisal changed, a title commitment revised, etc.

On the mortgage side, we ALL know of the issues those oddball final sales price amounts not rounded, can mushroom into!

Ask any Mortgage industry or Title industry person if what I'm stating is fact or not. 

Amazing how 100% of mortgage industry people will agree 110%with what I'm advising Investors to do to help ensure a smooth closing and completely avoidable delays over such a simple, no brainer action of rounding up or down.

So who are Investors to believe in this case?

I know that some still look at obtaining a mortgage here in 2018 as a minor, inconsequential and trivial task after a deal is negotiated on the real estate side, but for the rest of America, who need to obtain a mortgage, they know or will know, it's not a cake walk.   

There are humans that make human errors throughout the mortgage loan process having to fill out many documents to complete the different tasks needed to obtain the CTC.  Therefore the likelihood of an error being made through out the loan process is much higher when there is an oddball sales price.

...or

don't take this advice, let it ride and complain and moan when there are costly closing delays.

@Brian Garrett Okay, then I guess it doesn't make sense to you, an experienced realtor, so you'll stick with your ways.  

But if given this info in advance, how many of your buyer/borrowers would feel that rounding up $2.00 would make sense?

I'll bet 99% would agree with rounding up as a no brainer, effortless way to avoid unintended delays.     

I'm completely aware of the tactic as $99,995 or $9,9999.99 looks a lot better than $100,000 and is why everything at Walmart and on used car lots are priced this way. 

But on 3/4 of a Million dollar home, a $2.00 difference in a negotiating strategy is not going to kill a deal, but given the problems it can cause on the lending side, it's foolish to actually settle on such a final number.

A buyer's realtor or Listing realtor can always show how smart they are after there is a deal by saying...

..."To better insure a smooth mortgage loan process for the buyer, I'll pick up the $2.00, so we can round up to $754,500 even."   

Why would the price have not been negotiated up $2.00 to $754,500 or down $98.00 to $754,400, a round number?  

Do you know how much chaos and extra time and effort throughout the loan process correcting the sales price and possible delays such a number can cause on the Mortgage side? 

To all Investors: do yourselves and everyone on the mortgage as well as on the title side a huge favor and simply round your sales price up or down to the nearest round 100 number.