Why it's important to use a reputable lender!

Las Vegas Real Estate Agent - Didier CiambraAll lenders ARE NOT created equal!

Especially in a thriving home market like Las Vegas, it is imperative that you align yourself with a reputable local lender who is used to doing business in the area.

Sterling Team member Didier Ciambra (pictured to the left) gives practical tips and advice below on choosing and working with lenders:

  • Lenders work on a commission basis and in today’s reality will say anything to get a client. A pre-qualification letter is not an unconditional acceptance of a loan from an underwriter (the person that actually gives the loan). A pre-qual letter is like a Letter of Intent – it confirms intent but does not obligate any of the parties to perform. As a result over 90% of all delays to close of escrow are due to lenders inability to either find a loan or simple incompetence.
  • Not closing on time means that the buyer is in default of his obligations as defined in the purchase contract. This can and usually will trigger the penalty clauses under that contract as agreed by both parties during the negotiation process. This includes the release of the earnest money deposit to the seller (where it becomes non-refundable) or the outright cancellation of the transaction (likely if the seller has a better back-up offer).
  • If the seller cancels the transaction because the buyer has not performed as per the purchase contract, then the buyer will lose his earnest money deposit, as pre-agreed, which can be substantial.
  • If the seller requests that the buyer releases the earnest money deposit, then the buyer looses all leverage with the seller. This can be very problematic as the buyer now has to rely on the seller’s good faith if any additional problems arise before the close of escrow – for example if a problem is found with the house during the final walk-through.
  • In today’s world, that is an uncomfortable leap of faith and a good agent will do everything necessary to avoid this. In fact, a good agent should be able to identify early in the process, if a lender is not-performing or is not reputable and should advise his client of the potential pitfalls before they arise and act accordingly to redress the situation seamlessly.
  • What is critical to a successful and stress free transaction is that all parties involved have their client’s best interest at hand – anything less does a disservice to the client and will increase the likelihood of an unsuccessful transaction.
  • Thank you Didier for this helpful report!

    Didier’s contact information is below. Please contact him if he can be of any assistance to you when buying or selling a home in Las Vegas.

    Didier Ciambra
    Email: ciambra@mslasvegasrealestate.com
    Cell: 702 232 6048
    Fax: 702 617 9793

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