Too many people are playing games. The lenders don't want to commit because they don't want to be "stuck" with an interest rate that in the long run is going to have them losing money. For that reason we are seeing less and less fixed rate proposals.
Borrowers are playing games these days as well. I'm not saying that the borrowers don't want to commit but because they are unsure where interest rates as well as this economy is heading they are very skeptical. They want to pull the trigger but something is preventing them from moving ahead. We are spending more and more unproductive time with borrowers that are afraid to move forward.
We have to make sure throughout our due diligence, and project gathering stage that they really want to finance their project. Wanting to finance and doing it are turning out to be two different things. If you are a potential borrower reading this I do not mean to aggravate you, but I do mean to have you personally examine if you want to move forward or not.
Going from lender to lender to get the best deal is no longer an option. In addition the lenders talk to each other and its very easy to find out if you are shopping a deal, especially when the lender checks the credit report and sees various inquiries from their competitors in the same time frame.
As brokers we are also told by our faithful lenders if the client is shopping us. Regretfully once a lender knows they are being shopped they usually do not want the deal anymore. Every lender wants an exclusive, so please remember that.
Lastly if you are a broker show loyalty to your lenders it will pay you back hundredfold when this economy comes back, as we all know it will. Remember to sign up at GET Your Loan Closed for our new 10 FREE Special Reports.
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