I phone the new lender and introduce myself. I ascertain that the lender is on-track and is fully aware of my buyers' contractual timeline.

It's their choice, not mine and I do hate it when this happens but, on occasion, we do have this happen!

IDK. Are we under contract already and they're switching lenders? That would require notification-- get with the lender, get up to speed, make sure they can get it done, and notify seller with the proper paperwork.

In order to GET under contract on a res here, we submit a written pre-qual with contract, containing the lender's NMLS number and contact information..

So not knowing who the lender is would not happen.

Can the lender get it done? Then fine.

Can we just be happy that we have a deal that's probably going to close?

So my overall answer is: 0 F's given. 😘

I have had some buyers decide to use a different lender, but they have informed me and it all worked out fine. I pay careful attention to the process, check in often, and then at the end decide if that new lender is one I will add to my list of recommendations.

       I have no control over the lender that the buyer chooses, other than making recommendations/introductions.  As long as they get loan approval and meet the contingency deadline, it's not my problem.

If it is an internet lender I tell them their level of success is not good! You just cannot get a loan pressing a few buttons on your phone. In my state, I would notify the buyers attorney to relay the bad news there also.

You work for the buyer but you can also give them their 'chances to close' percentage which is about 20%. How's the seller going to feel about that?

I would be embarrassed to call myself a Buyer's Agent in that situation. A transaction can go sour darn quickly if you don't have at least some control of what's at hand. The choice is theirs and my job is to make sure that the home becomes theirs. Staying informed is my responsibility to them.

I do my job.

But, I have a plan B that I present to the buyer.

Plan be is to start the process with a lender who 'invests' in the borrower from the very beginning. When Plan B is initiated, they can close in less than 5 days.

The problem becomes a buyer who does things in secret very likely will have other surprises coming. "You never told me not to buy a new car to match my new house!"

Pray.

I sure would have hoped that the lender would have called both the sellers and buyers agent first and introduced themselves to start off on the right foot. But since they didn't, call them up, and get them up to speed and then stay on top of them.

Not much I can do about a buyer decision. I would contact the lender and give them my information 

Go with the flow, contact the new lender and introduce myself and get the deal done.

I like to work with informed buyers...so I inform them early on.

I give buyers the true life stories about what can happen when they use an internet lender that operates on a cell phone in another state.

Usually they take my advice...if they go off on their own, there may or may not be a problem. 

I can only advise, I am not their mother...

Eve

Which lender a buyer uses is totally up to them. But I've never been in a situation where the buyer did not tell me whom they decided to use for the mortgage.

And then there is question of how you define an on-line lender. Many call Quicken an on-line lender and I've never had an issue with a Quicken funded loan.

We stay in steady contact with out investors with a contract coordinator.

I agree with Debe

Regardless of which business we are working in, the most important priority is managing the client.  Expectations, procedures and how we treat each other and the transaction are essential.

Praful,

I think that Debe Maxwell, CRS gave you the perfect answer.  You may get a wonderful source of referral by introducing yourself especially if they are one of those lenders you did not know anything about.  A

That moment & its circumstances will govern my response at the time

Before they even make an offer i warn them about this and why. I contact the loan officer and ask for update, if i dont get them, i check in weekly. If they switch, if local nd trusted, i check in. If an online lender, i sit the buyers down for some quick hard truths

Just keep the process on track and get it done.

I hope the person is a friend of the borrowers and will do anything and everything to get the loan funded!

As we all know, the Consumer ultimately has the final right to decide which Lender to acquire their mortgage loan through. For this reason, it is essential that the Lender and Real Estate Agent have a strong enough partnership (based on trust, loyalty, confidence, etc.) and can properly articulate the benefits of working with this TEAM throughout the escrow process. When done effectively, the Consumer will typically choose to remain loyal to the Lender recommended by the Agent. 

On a side note, I know of no other Agent who advocates more effectively for my personal loan services than Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D 

He would be a great resource to learn scripting tools from (whether about me, or your Lender of choice). Good luck!

Remain aware it is the client's decision. Do your best to get the transaction to the close. 

Our forms require the seller to approve of all lender changes, provided your buyer had a pre approval letter already in place when he/she made his offer.  Remind the buyer that the seller accepted their offer with the lender provided in the offer and any change in lenders is a change in the terms. If your state doesn't have this requirement, remind him/her that the deadlines in the offer haven't changed and their new lender must perform within the agreed to timelines.

It is time to meet the new loan officer and ask some questions.

I've had that happen when the process was taking too long but never without me knowing. 

Work with the lender and also explain to my client how important it is to close on time.  I let them know about losing teir deposit.

I warn them that if anything goes wrong with an unknown , I will have very swaying power !

Exactly what Debe Maxwell, CRS said.

How about a buyer decides to work with another agent blaming his offers all got rejected because he maxed out on his budget? Lender is lessor of an issue since all my contracts are not contingent on the loan. They signed they will lose the deposit if not getting the loan. 

That's not nearly possible. When I work with my buyers, I have rules and i'm on top of things, I'm on the phone with the lender regularly, almost daily.

As Debe Maxwell, CRS wrote. Not much you can do unless you want to turn your back on your revenue stream

The buyer is in charge! They often think they know more than we do. The often do not value our expertise and experience. They need to learn the hard way. We do the best that we can to make the outcome a good one.

I only had that happen once in 15+ years.  I echo what Debe Maxwell, CRS said. 

I've had it happen many times. Somewhere in the early stages, the new lender reaches out to me. So far, only one has failed. 

Debe Maxwell, CRS summed up my answer.

I always start my clients off with Jason E. Gordon and he rarely loses one, typically they're jumping over to him once they compare. A lot of my buyers come to me with online lenders in tow, I politely suggest a comparison and Jason does the rest.

Sounds like you have some very savvy answers!

if it were my buyer, it would NEVER have happened.... attached at the hip would have been a MUST with every move ....

It doesn't happen with me.  I am usually on top of this with my buyers.

Introduce myself.

I contact that lender and get on the same page otherwise we will have issues

Many of my buyers work with a lender that I have never worked with.  I will inform them that lenders are not only about fees but also about knowledge, experience, success rate, etc.  It's their choice but I do let them know that they can call my lenders.  

Introduce yourself and get to know a new lender...

Agree with Debe Maxwell!

I usually explain the potential consequences up front , but in the end it is their decision and will stay on top of the transaction to make sure all is completed in a timely manor

Keep the train on the rails. 

I've had that happen...

I wasn't pleased at the time I found out, however it is the buyers choice...

I contacted the lender, introduced myself and shared facts and information...

Sale went off without a hitch...  Everyone was happy...

It's their choice but I would be in touch with the lender to introduce myself and talk about the transaction and dates.

They need to let us know, as we have to let the LA know.

I try to explain the pros and cons, and internet lender, to many cons.