What is the turnaround time for a redisclsed GFE on a conventional loan and will it prevent closing if it's not returned by the closing date. It

Asked by Diamond82, East Point, GA Thu Jul 12, 2012

had I am scheduled to close July 13, I signed my GFE on Tuesday July 10. It had to be redisclosed because the appraisal value came in low and the purchase price had to be lowered to the adjust price.

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Diamond82’s answer
Diamond82, Home Buyer, East Point, GA
Sat Jul 14, 2012
My congentecy clause was for the appraisal if it came back lower, when the seller agreed to lower the price the admendment didn't say anything about the time allowed to re-disclose and I'm sure they knew I would have to because the price was changed which changed the loan amount. My file just got to the UW o. July 13 which was the date the seller put down for the closing. Everything is done tittle, HOI, taxes, employment verification, income, I just need a CTC from the UW but my fear is the seeker will back out because it didn't close July 13th they just sent the admendment to lower the asking price on July July 9th the seller is Fannie Mae.
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, ,
Thu Jul 12, 2012
The GFE is one of the most important documents in a loan approval. Federal laws govern providing a GFE to a borrower in a specified time.

Federal regulations require re-disclosure of the initial package to be sent to the applicant(s) in the following situations:
ï‚· Fees for the loan INCREASE by more than the tolerance limit under the new RESPA Rules effective January 1, 2010.
ï‚· A borrower is added or deleted.
ï‚· There is a program change.
ï‚· The fees, loan terms, and/or interest rate change (other than the prepaid interest calculation).
ï‚· The APR increases or decreases by more than .125% for a fixed-rate loan, and by more than .25% for an ARM loan.
 The loan changes from an “in house” loan to a brokered loan or from a brokered loan to an “in house” loan.
ï‚· Mortgage insurance is added.

If re-disclosure occurs, the lender may NOT schedule the closing until at least three (3) business days after the re-disclosure is RECEIVED by the applicant(s).

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
Diamond82, Home Buyer, East Point, GA
Thu Jul 12, 2012
The seller when they accepted the new price when the apprisal came in low put the date July 13th on the amendement. I have the financing I have alread been approved for the orginal asking price but the apprisal came in low and the lender of course wouldn't close a loan with the asking price lower than the appraised value. I just signed and faxed back the update GFE and 1003 form becuse the price dropped the GFE had to be changed. So I am not sure if I have to stick with the sellers date on the amendment or if they will give a couple more days to get the closing docs sent and a date set up.
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Jul 12, 2012
The GFE is not a pertenant document for the Title Company, the Seller or the Lender:
Many Buyers do not even get a GFE.
It will not stop anything.

What you should be concerned with is the FINDING for the Loan;
will it be in place for the Escrow to close?
The procedure would be to have a Contingency, (17 day, 21 day, 30 day) for the Loan, that would allow you to back out if you couldn't get the loan in place.
If you are having problems, you would file for an extension with the Sellers.

If you do not have the loan in place, have no contingency, and the Closing Date is here, then you are in trouble and may lose your Deposit and the house.

Your Realtor should be helping you with this, representing and protecting you.
0 votes
The GFE is one of the most critical documents for a lender. Federal laws require one be provided within 3 business days of a loan application. New GFE's must be re-disclosed if fees change prior to closing.

Only on transactions where a lender is not providing the financing, would the GFE not be required.
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