Is something wrong with the loan?

Asked by LilyBlu, Murfreesboro, TN Mon Jul 2, 2012

We have been in underwriting for over a month. We are being asked for paperwork on a daily/weekly basis. Shouldn't there be a list to get it done all at once? We have paid for everthing out of pocket including 2 appraisals and it was supposed to go to USDA last week. Now we are digging up MORE paystubs from as recent as last friday for the bank. If it is not sent to USDA now we will not make the deadline and loose the house. Does this happen alot or is it really wrong?

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
LilyBlu, Home Buyer, Murfreesboro, TN
Tue Jul 3, 2012
There were repair issues. We fixed them then had to have it re appraised. The problem is it has not made it to USDA yet it has been at the bank for weeks.
0 votes
Linda Schklar, Agent, Brentwood, TN
Tue Jul 3, 2012
Welcome to the post housing market crash. You might check to see if there are appraisal issues on the property. Is there 5 acres or more with the property? That will definitely hinder the process in that USDA is worried about value of land in relation to the value of the house. Another worry is that the land could be subdivided or used for income. Since you say you had two appraisals that raises a flag for those two scenarios. The other thing you need to check out is repair issues. Good Luck!
0 votes
Wanda Lance, Agent, Murfreesboro, TN
Mon Jul 2, 2012
Your lender should have most if not all of the answers to the questions above and your realtor should be in there helping you get the answers you need. You should have a lender and realtor you can ask anything of; these of your two most important people in any transaction.

In my experience, if the lender is asking for more paystubs its because they must have them within 30 days of the closing; as a matter of compliance.

Federal government loans such as USDA/RD do seem to take longer than the traditional FHA/Conventional loans...so no surprise there. Your realtor should be putting in the proper paperwork to extend the closing...it is a formality but it keeps you within the guidelines of the contract.

And yes, we have lists, checklists, checks and balance lists...we have a form for every situation...this is something I go over with all of my clients prior to the buying process; it always helps to know what to expect and when you know what to expect (everything will still go wrong). but your realtor and lender are there to help you thru this what should be a happy; but always stressful time.
0 votes
LilyBlu, Home Buyer, Murfreesboro, TN
Mon Jul 2, 2012
The paystubs are actually to show where deposits came from into accounts. This was already done for January through April, now they are asking about May. It is frustrating that there has been no communication with anyone for months other then e-mails to ask for papers. We already got an extention during which the broker took a vacation and we are afraid we will simply run out of time on the contract. It seems like nobody knows what they are doing and they are just hoping it gets approved at some point. We have even done repairs on the house out of our pocket without any reassurance that things look good so far. Is this all typical? It just seems so unprofessional to me.
0 votes
Gregorio Den…, , San Diego, CA
Mon Jul 2, 2012
You will always need to provide your most recent paystubs dated within 30 days of closing. If your process has taken over a month, asking you for updated paystubs is quite normal and necessary.
0 votes
Gregory Goff, Agent, Murfreesboro, TN
Mon Jul 2, 2012
Sounds like your loan officer isn't doing their job. It shouldn't be that complicated unless you are using a direct loan with the USDA which can take up to 3 months or more. However, in that case your agent or loan officer should have explained the process in more detail and the time table involved.
0 votes
, ,
Mon Jul 2, 2012
Probably not a problem, it sounds like either you did not give the loan officer everything before actually applying for the loan or they didn’t review it before actually completing the application. Missing pieces are the most common reason an underwriter asks for something else and when they receive that something contained on the new document causes them to ask for something else. As for continuous new pay stubs, banks statements, etc., the loan file must contain the most recent. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Jul 2, 2012
It does not sound all that unusual for a loan involving the government. 2 appraisals sounds unusual but 2 underwriters is not unusual on a govt backed loan. Just before they approve the loan it is common to check pay stubs to make sure nothing has happened, like loosing a job.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Murfreesboro Zip Codes

Email me when…

Learn more