I had a customer who easily qualified for their loan (we thought). They had already sold their main home and had their other home leased out. They find their new home, get it under contract and submit everything to the mortgage company. We are moving along just great! Six days before closing and 45 days after loan approval we hear from the underwriter at the Mortgage Company:
Mortgage Company (MC): If you can’t provide an acceptable letter from the employer (Item A). We will need additional documentation.
Buyer: Why didn’t we hear about this sooner?
MC: Underwriter just reviewed the file and wanted additional information.
Buyer has difficulty getting acceptable letter (pertains to bonuses).
Buyer: If we can’t get this Item A completed what would be required?
MC: We will need for you to complete Items B, C, D and E
Buyer: We will start working on additional Items, but we still think we can complete Item A.
Buyer: YES! Employer completed Item A. We are ready to close!
NOTE: All the above occurred within a 24 hour period
MC: No, you must complete Items B, C, D and E to close.
Buyer (and me): What? Item A was completed per your instructions! Items B, C, D and E were only if we couldn’t get Item A!?!?
MC: Yes, but we have already requested these additional items and they are now required. They must be completed.
Buyer: That doesn’t make any sense. We only asked about the additional items IN CASE we couldn’t complete Item A.
MC: Doesn’t matter, we added the requirements and can’t (or is it WON’T) remove them now.
Two weeks past the scheduled closing date and we are finally ready to go. Fortunately, we had scheduled the closing in the middle of the month, so we had some leeway. The Buyer’s had to endure an additional move, since they were staying with family members who got their house under contract and it was scheduled to close AFTER our contract. Due to the delay they had to pack up and move into a hotel.
This doesn’t make any sense to me. Why wait until six days before closing to ask for the employer’s letter to be modified? It was provided at the start.
This is becoming all too common. Are mortgage companies waiting until the last second to review a file? As soon as an Item gets red flagged they seem to stop the reviewing process. The red flagged Item gets completed and they start reviewing again. Another red flagged Item pops up that should have been found on the first review, but they don’t seem to completely review the files.
It is like "Oops, we found a problem at page 1, Item A. Lets not look any farther than Item A, because that would make too much sense."
Licensed to SELL - Dedicated - Experienced - Honest - Than Maynard - Purcell, OK
|REALTOR, CRB, Certified Short Sale agent, Certified Foreclosure Agent, Accredited REO Agent|
|Coldwell Banker Heart of Oklahoma Real Estate|
|1726 N Green Avenue, Purcell, OK 73080|