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My husband and I have been through the ringer on our first home buying experience so far. To cut to the chase, we have had to extend closing dates twice (our last one was 3 days ago which we clearly missed and cannot file an extension since nobody is giving us any timelines now). The appraisal was done and filed last week, appraised for 7k OVER the offered price, and there were no repairs required in the report.
Today I recieved word from the seller that the appraiser called her and set up an 8am appt with her to recheck the property per the underwriters demand. What reason would the underwriter demand such a thing after it came back without any conditions or repairs required?
We also were told to send in pay stubs. My husband is a farmer- he does not get pay stubs. We have sent in all of our bank accounts and gave the details for all of the deposits which ranged from cattle to what he is paid to manage a farm that isn't his. His boss also filled out a form stating he did work for him and gave all the details of his pay and rough estimate of hours and all that good stuff. His boss simply writes him a check about once a month after we calculate his hours- I don't think he keeps a payroll journal or anything of paying my husband but does his taxes with our same tax guy and we have never had an issue with any of that. So now what do we do?
We are already passed our closing date, we have no idea when we can get moved into our new house and we have had to call and reschedule everything from TV and Internet to electricity and water 3 times already. Getting a little frustrated at this point and from talking to the loan originator everything is "fine" and she'll get it fixed. She says we have already given them all the paperwork the underwriter is now asking for so I don't know what in the world is going on at this point and it's beginning to feel like after over a month of constant issues we will wind up not even getting to closing or buying the house.
It's not uncommon for a lender to require repairs that were not included in the appraisal. A lot of times it is to confirm utility services have been restored. Or, if they saw some type of damage mentioned in the appraisal, they can require it be repaired, even if the appraisal did not require it.
My husband and I have been through the ringer on our first home buying experience so far. To cut to the chase, we have had to extend closing dates twice (our last one was 3 days ago which we clearly missed and cannot file an extension since nobody is giving us any timelines now). The appraisal was done and filed last week, appraised for 7k OVER the offered price, and there were no repairs required in the report.
Today I recieved word from the seller that the appraiser called her and set up an 8am appt with her to recheck the property per the underwriters demand. What reason would the underwriter demand such a thing after it came back without any conditions or repairs required?
We also were told to send in pay stubs. My husband is a farmer- he does not get pay stubs. We have sent in all of our bank accounts and gave the details for all of the deposits which ranged from cattle to what he is paid to manage a farm that isn't his. His boss also filled out a form stating he did work for him and gave all the details of his pay and rough estimate of hours and all that good stuff. His boss simply writes him a check about once a month after we calculate his hours- I don't think he keeps a payroll journal or anything of paying my husband but does his taxes with our same tax guy and we have never had an issue with any of that. So now what do we do?
We are already passed our closing date, we have no idea when we can get moved into our new house and we have had to call and reschedule everything from TV and Internet to electricity and water 3 times already. Getting a little frustrated at this point and from talking to the loan originator everything is "fine" and she'll get it fixed. She says we have already given them all the paperwork the underwriter is now asking for so I don't know what in the world is going on at this point and it's beginning to feel like after over a month of constant issues we will wind up not even getting to closing or buying the house.
This is a tough situation in a few ways. 1. Your lender should have solved the no-paystub thing prior to issuing a pre-approval. You should have received Certainty from your lender on this issue before you ever went into contract.
The appraiser could have noted anything from a missing smoke alarm to rotting wood to exposed electrical wires, to something major - again, 2. Your Lender should know, and should have informed you exactly why the appraiser was sent back out.
In fact, you should have a copy of the appraisal. Did your lender send it to you? If so, page 3 bottom left, where the Value is posted (using the Sales Comparison approach), two boxes: "as-is" and "subject to" - - this is the first place to look to see if there are issues. Beyond that, notes sections, and the pictures.
And NOTHING is ever "fine." I would ask your lender EXACTLY, SPECIFICALLY, DOWN TO THE MOST GRANULAR MINUTE DETAIL what is going on, what is wrong with the appraisal, and what's the situation with the paystubs. Best of luck to you, please keep us posted.
If an appraisal has been issued, you should have a copy. I have seen call backs for many things, locked rooms or no access to crawl spaces. Without a report it is hard to say. How did you find this loan officer? The pay issue should have been found BEFORE going under contract.
Thanks to everyone for the answers. It's been literally blow after blow with this process and it's about to the point where I don't even want the house anymore to avoid dealing with it!
Apparently the payroll issue has been cleared up, my husband talked to them about the appraiser going back and the underwriter ordered it? I'm not sure because I've washed my hands of the whole deal and I'm just letting my husband do all the dealing now before I lose my mind over it all.
This morning he called in to check and now it seems our file is being "randomly audited". What are the odds of that happening after everything else that we have gone through! The LO told my husband that at the longest we should be through the audit stage in 24 hours or at least a few hours, but still hasn't said how close we are to closing. However, I've heard a lot of time estimates from them that have gone well passed what they said so in not holding my breath anymore. So at this point I'm just wondering if we are near the clear to close or if there's something else that's going to pop up and cause even more delays.
First understand every lender must have a quality assurance program. Every single agency and loan pool requires a written plan before loans can be delivered. The QA must be written and provide the details, such as percentage of files (some companies will run 25%, some 100%). Evidence of this process occurring is required to be documented.
This audit could be as simple as ordering a LexisNexis on everyone, a Fraud Report as supplied by Equifax, a human with a checklist on 30% of the files. An audit is typically a deep look at a file: are the names consistent? Are the addresses in the file matching the documents they turned in? Are there any alerts on the credit report? Is every form in the file and dated? Were there the appropriate number of days between loan application and the collection of funds? Who owns the company where each borrower works? Do any of the employer names match the borrowers' current or former (maiden) names?
These items can go deep or be superficial. The good news, only a very small number of these audits find a skeleton to derail a loan. The last derailment I saw was a borrower that "borrowed a social security number" on her 2013 W2 with one employer. Other issues have included the coborrower worked for family, but can't document for the two years on the application.
Once you have an approval, the odds are in your favor. Hang on tight, you should be through the toughest part.
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