Financing in Lake Forest>Question Details

Gina Williams, Home Owner in Orange County, CA

We signed with a notary a refinance loan on the day before Thanksgiving. It still hasn't been funded. Are the loan documents binding for the?

Asked by Gina Williams, Orange County, CA Sat Dec 1, 2012

lender? Cashcall's (lender) underwriter has decided that the appraisal is not good enough because we aren't finished completely with the kitchen remodel. Cashcall picked, paid and received the appraisal on Nov. 12. It was appraised at $535,000. We were upfront with them and asked them over and over if they were sure the appraisal was that high because we are renovating the kitchen area. They said they were aware of the construction and were ready to proceed. It is a refinance loan at 3.25% for 15 years with enough home equity to withdrawl cash to pay the credit cards off(which we used for the remodel). They have not funded it because the underwriter wouldn't approve it because their appraiser won't write "AS IS" on it. They have dropped the rate to 2.99% and supposedly will fund it at that loan rate and terms when the kitchen is done. The kitchen is completed according to the health and saftey laws with running hot/cold water, hard washable floors and appliances. No cabinets yet.

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UPDATE TO ABOVE QUESTION: underwriter approved loan and sent it to funding. The funder is the one who questioned the appraisal and noted on it that it needs to be a fully functioning kitchen. Since the time of the appraisal the marble flooring has been laid in kitchen and dining room. Fridge and Freezer are now in. They don't have cupboard doors on them and funder thought it was a metal beam??? Our appliances are very expensive and cost us well over 22,000 dollars. The fridge and freezer is the custom refridgerator that splits so that they aren't even close to each other. Induction stove. Thermador oven, microwave installed. Dishwasher installed but we still need to receive our order (cabinet doors) that attach to the front of most of our appliances. Granite is in garage for countertop. Wood flooring just needs to be laid in family room. Husband is liscensed contractor and works as an inspector for a city.
0 votes Thank Flag Link Mon Dec 3, 2012
I highly suggest that our buyers use local banks. I give the same advice to former clients who want to do a refi. With a local bank, you can talk in person with your loan officer who can be an in person conduit to your underwriter. I have had only one buyer who wanted to use an on-line lender and it didn't go smoothly.

That said, I suggest that you ask for an appeal of your current appraisal. If that does not move the underwriter, then I suggest that you request that another appraisal be done by another appraiser (of course, that means you will have to pay for two appraisals). If that doesn't work, I suggest that you
"cut your losses" and find a local bank to work with.
0 votes Thank Flag Link Sun Dec 2, 2012
Hi Gina

The bank can stop and not fund at the 11th hour you will have to work it out with them to see how things can be rectified Send them the papers from the inspector that can't hurt to do
Rhe lender or you can ask for an appeal to the appraiser. they should know this, and there is no charge to do this. Why are they not trying this avenue or maybe they have. Follow up with them on this
Is it worth it to get another appraisal and will they let you ? Check with them to see how you can move this along
My husband was working to get our refi with a lender like yours and they said we were approved and will be sending the loan docs out Never for them and they changed their mind crazy right. Went to a different more mainstream lender and for it done an faster. You may need to use a different lender is what is may come down too
Bye for now

Ingrid Ski Realtor
0 votes Thank Flag Link Sun Dec 2, 2012
Without knowing exactly which docs you signed, it's hard to tell what your liability is,I would think however that since the lender is re-evaluating whether they want to loan you the money, then no, these are not binding for you.

As far as the lender goes, you would have thought that they finished their underwriting approval before you signed anything with a notary.

At this point, your loan sounds far from secure. I think you probably need to do what they are asking...

Best of luck.
0 votes Thank Flag Link Sat Dec 1, 2012
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