Financing in Kenai>Question Details

Jen, Home Buyer in Kenai, AK

I was approved for a loan. My builder built the home on the property that I quick deeded to him because of

Asked by Jen, Kenai, AK Tue Nov 25, 2008

the approval. This was a 6 month process where both the builder and I were in constant contact with the lender. I was able to take early occupancy in the home 1 week before closing because of this. 1 day prior to closing, the underwriters said they would not sign off on the loan. Can they do this? I gave them every bit of info they asked for and the loan originator said we were all set and one day before closing then said the underwriter said this legal? Is there not something called due diligence and a moral ethics that even if they made a mistake in the approval that they stand by it because we spent 6 months in the building process?

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Your post was a bit confusing, let me know if this is accurate:

I'm thinking the most likely scenario is that you're doing new construction financing on an existing property that you're building a home on (vacant land or a tear-down?). I'm curious as to whether or not the property currently has a mortgage no it. Why you'd quit claim the property to the bulider I have no idea. A builder I work with puts a mechanics lien on the property for the amount of the construction loan (assuming the appraiser verifies it will appraise out). If you were to transfer the deed to the builder then do a rate/term refinance when you funded, you would not be the current owner and you wouldn't be able to close. If you quit claimed it back to you, you would then have a title seasoning issue.

My best advice is to call me and explain in more detail what's going on here. I do a lot of Renovation and Construction-Perm (or New Construction) financing. If I can't help, I'll set you on the right path, at the very least.

P.S. What a small world! I just noticed you're from Kenai. I lived in Soldotna for a year when I was growing up. I lived in Big Lake and Wasilla most of my life until I graduated and moved to Chicago for college. I was just up there last summer (Wasilla).
Web Reference:
1 vote Thank Flag Link Fri Nov 28, 2008
I may be signed a quit claim deed over to your builder? What was the reasoning for this?
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0 votes Thank Flag Link Tue Nov 25, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
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