Home Buying in 92555>Question Details

Jenny3408, Home Buyer in 92555

is it normal for the LO to do this so close to closing with no answers?

Asked by Jenny3408, 92555 Thu May 19, 2011

is it normal for my lender to say i have a final approval with one condition and it was my tax return and then it had to go to upper management for apapproval and that was 4 days ago and no answer still ...we were supossed to close tomorrow but the sellers are getting antsy and im afraid they will move on ...is this a bad sign ? no answers!!!! still and so frustrated

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that makes me feel better then...thank you ...what do you think about me reviewing my online status and the monthly payment dropped down rouhly $80 ...is this a good sign that they are working on it to approve and its closer to closing ?
0 votes Thank Flag Link Fri May 20, 2011
I always ask for the tax returns on the front end, in fact, I do not give pre-approvals without reviewing all of the support documents. The problem is we are required to get tax transcripts from the IRS prior to closing and they must be ordered by a service provider. Each return is a separate expense that can not be passed on to the borrower so they are not ordered until the underwriter reviews the file to see if it is approvable. It is usually not an issue as long as you do not have business write offs. If they have not asked for explanations regarding information on the returns that is a good sign.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri May 20, 2011
Thanks ladies, one more thing ... I went online this morning to check the status of the loan , and it seems like they might have been in working on it last night ... i noticed they conditioned me for a couple of other different things which I can provide very easy, and I also noticed my estimated payment went down...does this mean anything ? my estimated payment going down? ?? good sign ...i hope ????you are the experts ...what do you think ?
0 votes Thank Flag Link Fri May 20, 2011
One more option-with the $150/day per diem that you are being charged-tell the loan officer you want her to pay that since you have performed and the only reason for the delay is her performance (or lack-there-of).

Perhaps if the LO has the daily reminder of $$'s, she will expedite the process so you will get your answer more quickly.

Also, here is a local lender in Moreno Valley that can answer your specific lender questions and possibly step in if your lender can't get the deal done.

If nothing else, he will be completely honest and upfront about your chances of closing.

Robert Trowbridge, Wholesale Capital Corp (located on Olivewood next to the 60 frwy) 951-488-3173

Best wishes-let me know if you have any further concerns with which I can help.
Web Reference: http://www.lisalequire.com
0 votes Thank Flag Link Fri May 20, 2011
I completely understand why you are nervous! You are absolutely correct however, the lender should have been all over this already. Call me or email me tomorrow and I can send you some lending referrals to have in backup position in case she falls through.

Telling you to let her do her job is not very good customer service- my thought is "If you were doing your job, my house would have been closed already"

Sinead McAllister
858 205-5215
0 votes Thank Flag Link Thu May 19, 2011
One of the last things done is to order the tax transcripts (4506T). If this comes back different from what was in the file, there can be issues. A "common" one would be undisclosed 2106 expenses that would change the income calculation. Even though tax returns are not required unless self employed, the 4506T is required, so a smart loan officer asks for the returns prior to closing and reviews them to make sure there are no surprises. At this point, there is nothing you can really do but wait and see what it is that they are looking at. Ask your loan officer to explain it in detail and demand answers.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Thu May 19, 2011
thank you both for your answers ...very helpful ....we do have an agreement $150 per day ...but I am worried that they might deny me because it had to go to upper management to look at and my L.O used the words that she is fighting for me because they are saying they might not be able to use my tax return for some reason ...last night she told me not to worry , no one can take the house from me...but today I asked her to be honest because time is ticking and thats when she said that upper management was looking at it ...and i asked her could this possibly mean I get denied ...she said it is possible but she didn't feel this would happen ,,,to let her do her job and it will work...i guess it has to do with debt to income ratio now ...which i feel they should have said from the beginning not the day before we were supossed to close ...what do you think ??
0 votes Thank Flag Link Thu May 19, 2011
Have your agent request an extension for the closing date so your contract does not expire. Inform your lender that the contract is about to expire and you need to know how much more time they will need.

Once your lender has all conditions met and final approval is complete they will need to send a closing package to the title agent. This will usually take at least 24hrs to send out once complete.

I do not see any way for you to close tomorrow. Request an extension ASAP.

Best of luck,
Stephanie Leon
0 votes Thank Flag Link Thu May 19, 2011
Hi Jenny,
I have seen a couple go that way recently. One of my clients had an issue with their tax return, but the lag was really getting certain docs from the IRS. I would definitely advise calling your loan officer and asking him for the real deal. Is this a dealbreaker? What is the actual ETA on a response? And you can always throw in the request to speak to his superior.
Another option to quell the sellers may be the offer to pay a per diem charge for every day past your scheduled close of escrow. You may then be able to negotiate for your lender to give you a credit to cover that charge, since they are the cause for the delay.

Good Luck- Hang in There!
0 votes Thank Flag Link Thu May 19, 2011
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