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I understand being fed up, but don't give up 7K without a fight.
Something is not making sense or they are falsifying documents. Please go look at page 3 of your HUD I thumbnail. In the 3rd group of boxes, there is a category, "Charges that can change." They are saying on the original GFE, your escrows were disclosed to you at $3362. You are saying they disclosed zero (this is box #9 on the GFE).
When did you change to a 90% loan?
What does your GFE say on page 1? Towards the bottom of it addresses escrows. What does it say?
Either they just now did their due diligence and disclosed the change to you (and that is why you are upset?), created a document previously and never sent it to you, or they falsified a document. But there is no way that 3rd section can be that far off without proper disclosure. If what you say happened, then the GFE should read "0" for the escrows. Several other things would have changed too, like price (rate and points) that would require disclosure to the consumer.
When I get home I will post the previous GFE they gave me. Loan officer told me when I started questioning the first GFE that this is all an estimate and not set in stone, so basically not to worry about it.
So now I find out the underwriter miscalculated my income to be lower than it actual is...I'm tearing my hair out. Loan officer can't get hold of the underwriter to straighten this out, so looks like this is stretched out another day....*sigh*
I don't have any more fight in me left. So tired from this emotional roller coaster.
Thank you smartmoney for your help and reading through my HUDs. I really really really appreciate it.
If you just want out at this point, talk to your agent/attorney to see if your financing contingency is still in place. It sounds like your lender is having problems finalizing the loan, so maybe you can get out of the deal due to not being able to get financing and even be entitled to get your $7000 back.
If you just want out at this point, talk to your agent/attorney to see if your financing contingency is still in place. It sounds like your lender is having problems finalizing the loan, so maybe you can get out of the deal due to not being able to get financing and even be entitled to get your $7000 back.
Well we signed off on the loan contingency because our agent pushed us to sign off on it. He said the seller has a better back up offer and is trying to push us out of the contract. Whether that's true or not, no idea, but I don't see why he'd lie like that as he has nothing to gain really. Seller wanted all the contingencies signed off(the selling agent sent our agent an email at 6am in the morning and said we need this by 10am that day or its off) and us to sign an addendum to the original contract saying we will pay the seller $150 per day each day it goes past the original close date(we are currently at 5 days past closing). At that point I wanted to say forget it, but agent said he will cover most of the cost of the penalty and made it seem like getting the loan was no problem.
And that's how we got in this mess. The agent and the loan officer made few key of assumptions that didn't pan out.
Agent assumed we would be able to get a week extension, nope.
Loan officer assumed we wouldn't have issues with the property that my parents live in that's under my name. Nope, underwriter deemed that having my parents' name on the deed isn't enough, it must be on the note as well.
So we found out yesterday that the underwriter made a few mistakes which put our DTI too high. Underwriter put my income lower than it actually is, included our TOTAL vehicle loan in the DTI(we only have 2 more payments left ~$800), and who knows what else they missed. Loan officer said according to her calculations we make the DTI to be able to get the loan, so this is it I guess.
I understand that the underwriters are swamped but it's really frustrating when they make glaring mistakes like this and hold up closing by at least 2 days(since they can only respond once per day. They tell us they need something, we send it within the hour, don't hear back until the next day).
Well that's enough ranting. I've posted the HUD that I originally received, maybe that may clarify things a bit. The loan type is different from the current one, the current one is 90/10 while the old one here is 80/10/10.
I'm pretty sure we will know today whether the loan is even possible at this point. Unless the underwriter want more docs...which I can say they probably will but have no idea what it would be. lol
I will update once I find out, thank you all again for the help.
No word yesterday, and our loan officer said we will know for sure today. Whether we get approved or not, we will find out today.
At least there's an end to all this lol. I found out that we are getting our loan from Fannie Mae and some of their things are stricter than other lenders which is causing some issues.
Small update: My situation seems bleaker and bleaker, and a denial seems to be looming. Apparently the underwriter signed off on it, and when they put everything in the computer, our DTI was too high so it rejected it. I don't understand how the underwriter could not know this, and why we weren't notified of this in advance.
I guess there's one more thing they can try and after that...I guess we can try another lender but I feel as though the seller will force us out.
EDIT: Looks like we're denied. Is there any recourse in recouping any of the deposit? We signed of on all the contingencies based on what my agent and loan officer told us. Made it sound like it wouldn't be a problem to get the loan, but turned into this whole mess. And on top of that possibly have to pay those penalty fees for being late on closing.
Last edited by Professorhm; 08-27-2014 at 04:17 PM..
Small update: My situation seems bleaker and bleaker, and a denial seems to be looming. Apparently the underwriter signed off on it, and when they put everything in the computer, our DTI was too high so it rejected it. I don't understand how the underwriter could not know this, and why we weren't notified of this in advance.
I guess there's one more thing they can try and after that...I guess we can try another lender but I feel as though the seller will force us out.
EDIT: Looks like we're denied. Is there any recourse in recouping any of the deposit? We signed of on all the contingencies based on what my agent and loan officer told us. Made it sound like it wouldn't be a problem to get the loan, but turned into this whole mess. And on top of that possibly have to pay those penalty fees for being late on closing.
I don't think the daily late fee will come into play. I would certainly attempt to get the earnest money back based on financing denial. If it doesn't work I would see what your husband & wife advisor team can do.
I don't think the daily late fee will come into play. I would certainly attempt to get the earnest money back based on financing denial. If it doesn't work I would see what your husband & wife advisor team can do.
Seems like the officer is trying another lender, but now she's saying there are no guarantees?!?!
I guess she's gunshy not after the last one exploded. So I was talking to another broker and they explained to me that lenders can change their mind about a loan at any time even if they had a pre-approval?
We had a pre-approval from 2 lenders, and they both knew there was a property in my name that basically I'm not paying for. Clearly they were fine with it and weren't counting that in my DTI, but after a month comes back and tells me they can't exclude it because my parents aren't on the note? I told them this way before we got started, and I can't believe lenders are allowed to just change their minds like that and deny someone.
I thought all the new regulations were supposed to make things more transparent and clear, seems like it made it a whole lot worse and no one is communicating, from the underwriter to the broker.
I'm debating whether to just fire my current officer and go with someone of my own choosing at this point.. I figure if the LO is using a new lender, probably take at least another 2 weeks....which is the timeline the other broker gave me, but I'd have to pay for another appraisal. Ugh.
I really want this house, but we're racking up $150 a day in penalty, going to be at $1500 on Sunday. Another 2 weeks will be another $2100.. Granted my agent said he'd pick up bulk of it, but I'm not sure if he's going to keep to his word...Any recommendations on a course of action? I'm at a point now whether I need to decide to just cut my losses and lose the house and get some of my deposit back, go forward with the current LO and see if she can make this loan happen, or fire her and go with another guy who says the property shouldn't be a problem and can get it done in 2 weeks.
I feel slightly bad for my LO at this point because it seems like not all of this is her fault, and she's been working late to get this to work, however I just simply can't understand how the whole system allows something like this to happen.
Pre-qualification and pre-approval mean very little. At BEST, it means someone has reviewed tax returns, paystubs and credit.
I happen to have just accepted a position with a Lender that sends files to Underwriting FIRST, before processing, before anything. Even without an address. My pre-approvals are as good as cash. We actually issue Commitment Letters from Underwriting, and tell you, "now go find a house, all that's left is the appraisal and Title work."
I feel like years of stress are going away. No more last-minute urgency, no more bad surprises. You should see the faces of my realtor partners when we get docs to Title two weeks early.
On that property, did you furnish 12 months of proof-of-payment by another party? What's the situation?
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