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Old 02-24-2009, 02:09 AM
 
3 posts, read 18,614 times
Reputation: 12
Angry final loan approval delay

we have been waiting for our final loan approval. we are scheduled to close on March 7 but were recently told that we need to ask for an extension because the final loan approval has not been given. our loan officer keeps telling us not worry, to just be patient, these things happen all the time, and that the lenders are dealing with numerous loans, not just ours. I keep thinking, well if that's the case maybe we should take our business elsewhere. we were under the assumption that the last piece of information they needed was the appraisal report. However, they recently asked for more documents after they received the report. I was told today that we may have to move our closing date to the end of March. I asked about going through a larger, local bank and was told that larger banks may take longer. is this true?
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Old 02-24-2009, 04:37 AM
 
596 posts, read 1,616,490 times
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I cant offer advice on this to you but I feel for you. I dont understand what it is that they could need that will take so long to get? When did you start this process?
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Old 02-24-2009, 06:34 AM
 
Location: Censorshipville...
2,437 posts, read 3,459,311 times
Reputation: 1188
I'm waiting on closing too and we're waiting for the appraisal at this point. According to my lender, there have been tons of refis because of the very low rates so this has caused the banks to be really busy. I doubt you'd want to go to another bank as you'll have to start the whole process over again. Might as well stick it out since you're so far into it already. Just my opinion.

Good luck on closing. At this point I think all the hard stuff is out of the way so take a deep breath.
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Old 02-24-2009, 06:40 AM
 
Location: Long Island,New York
8,059 posts, read 7,705,034 times
Reputation: 2291
Quote:
Originally Posted by waitingpatiently View Post
we have been waiting for our final loan approval. we are scheduled to close on March 7 but were recently told that we need to ask for an extension because the final loan approval has not been given. our loan officer keeps telling us not worry, to just be patient, these things happen all the time, and that the lenders are dealing with numerous loans, not just ours. I keep thinking, well if that's the case maybe we should take our business elsewhere. we were under the assumption that the last piece of information they needed was the appraisal report. However, they recently asked for more documents after they received the report. I was told today that we may have to move our closing date to the end of March. I asked about going through a larger, local bank and was told that larger banks may take longer. is this true?
Make sure that you already have the ok from underwriting.Lots of times banks delay you especially if they are stalling when problems arise and they are looking for other loan programs that you are eligible for.
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Old 02-24-2009, 09:23 AM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,357,457 times
Reputation: 829
It sounds like the LO is waiting on your clear to close so the lender can draw docs. He/she is telling the absolute truth about the volume that lenders are experiencing right now and the delays that it is causing. On top of that you have investors that are scrutinizing the heck out of every file so add another 24-48 hours for reviews. You have tie ups in funding so add 72 hours for the wire. Unfortunately I believe that these things are universal. I have a client that is signing the 28th, and it won't fund until the 9th or so because of all of the new reviews, the turn times due to volume, and the delay in the funding wires. If you have provided all of the documentation you have been asked for, and are simply waiting on the underwriter to sign off on the conditions then just be patient. Moving the file to a different lender at this point will only add further delays as the other lender will have to start at square one (including the appraisal, a lender cannot use someone else's appraisal).
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Old 02-24-2009, 09:40 AM
 
3 posts, read 18,614 times
Reputation: 12
Quote:
Originally Posted by jctx View Post
When did you start this process?
we started the last week of January.

Thanks for the word of support. I talked to someone from another bank and they said they could get our final approval faster. I'm going to talk in to talk in person with this individual today and see if they can offer a faster response time.
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Old 02-24-2009, 10:30 AM
 
638 posts, read 1,600,230 times
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Same deal here, with the same reason given by the loan officer as well.
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Old 02-24-2009, 10:31 AM
 
Location: Censorshipville...
2,437 posts, read 3,459,311 times
Reputation: 1188
Of course they'll tell you anything for you to switch to them! What guarantee can they offer that they'll be able to close faster than your current lender? Have them put it in writing.
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Old 02-24-2009, 10:37 AM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,357,457 times
Reputation: 829
Quote:
Originally Posted by oneasterisk View Post
Of course they'll tell you anything for you to switch to them! What guarantee can they offer that they'll be able to close faster than your current lender? Have them put it in writing.
I have to second this. The second lender will have to start the file from scratch, so everything your original lender has already done the new lender will have to do again. Not saying don't talk to them, just take their words with a grain of salt.
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Old 02-24-2009, 12:35 PM
 
Location: Long Island,New York
8,059 posts, read 7,705,034 times
Reputation: 2291
Quote:
Originally Posted by Daddys///M3 View Post
It sounds like the LO is waiting on your clear to close so the lender can draw docs. He/she is telling the absolute truth about the volume that lenders are experiencing right now and the delays that it is causing. On top of that you have investors that are scrutinizing the heck out of every file so add another 24-48 hours for reviews. You have tie ups in funding so add 72 hours for the wire. Unfortunately I believe that these things are universal. I have a client that is signing the 28th, and it won't fund until the 9th or so because of all of the new reviews, the turn times due to volume, and the delay in the funding wires. If you have provided all of the documentation you have been asked for, and are simply waiting on the underwriter to sign off on the conditions then just be patient. Moving the file to a different lender at this point will only add further delays as the other lender will have to start at square one (including the appraisal, a lender cannot use someone else's appraisal).
A lender CAN use anothers appraisal if it is within the time frame for the same type of loan.(FHA to FHA,Conv to Conv;but not VA to Conv.)
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