Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First time home buyer - had a tough time dealing with a specific seller and ended up finally having a purchase agreement signed with Closing in 35 days of Offer acceptance. Inspection came out Ok with minor fixes and tuning HVAC that seller denied and I am taking it up on my end.
Was pre-approved with a Local Lender (A) for a while and was really comfortable with Lender A - was given a commitment to match any reasonable competitive Rates/fees. So from the day we placed the offer, i started shopping for different lender and found a major bank (Lets say Lender B) running specials on their ARM - so got a fair deal on 30 Years 7/1 ARM. Took it to lender A and they said its something that cannot be matched. Decided to go with Lender B with a confirmation the loan could be closed in 28 days and my lender A was okay since i am getting a better deal.
Below are the series of events:
Day#1 - Filled in Application, Got Pre-Approved and locked rates on same day with Lender B. (Friday)
Provided all Supporting documents required over weekend.
Day#3 - Found some corrections on Application that came for e signature-Corrected them & send it to LO.
Day#4 - Provided Purchase agreement and finalized Title Company. Appraisal was Requested. U/W was also requested based on the info from LO.
Day#5 - LO called me verifying assets/Down payment $
Day#6 - Called back to LO with some questions on closing and Appraisal Status.
Over weekend Got the application hard copy via mail and found my Monthly salary was 10% higher than actual. Sent an email to LO explaining the difference in Salary Numbers.
Day#9 - Called back LO twice and left a VM about the salary mismatch email. LO responded to email "we are doing complete verification No worried". Request His time for call, to plan about the fund movement between my accounts to get one single Cashier check for closing. No response to email or rather did not return my call.
Day#10 - Not sure whats happening - I did not wanted to call again and was giving time.
Day#11 - Still awaiting response to email on his time for Call.
Here are my concerns:
Salary: Will the wrong information mentioned in my Application come back as a Problem? There should not be issue with affordability - I have no other loans except for Car loan and credit score @ 760 range.
LO: I am just worried about my LO - He was really response the first week but i feel its not the case any more. No sure whether they are overwhelmed with work and I did not want to make him mad. So planning to give 1 more day before i follow up with email or Phone. Should follow up constantly?
Closing: I am 15 days away from Closing and Appraisal is yet to be completed. Further I have some funds in different banks and planning to move them to my primary checking account before getting Cashier check for closing - Can i do this or will it raise a flag to u/w on day of closing?
I am really stressed out since LO has not come back with any response - Not sure where my Appraisal and U/W process is at right now. Given the time frame i was expecting an Daily update or update once in 2 days from LO and after reading about it online, i understand how the system works.
Not sure if everything is going as per process and i am stressing out unreasonably - Any thoughts? Advice?
The salary piece should be a non-issue. The underwriter or LO may have seen additional income they could use. It should not come back to you.
Moving your cash should not be a problem either provided all the funds you are planning on moving were already reviewed by the lender. Lenders realize that people will move monies to different accounts to accommodate closing.
Do you know if your loan has been to underwriting yet? Lenders have different processes. Some will wait until a 'full package' is received which includes the Appraisal prior to final approval. Others will provide a 'credit only' approval pending receipt of the Appraisal. If the only report left to review is the Appraisal then 15 days is not too much of an issues.
Personally, I would be a bit concerned at the lack of communication for 2 days, especially if you've requested a call back. Obviously the LO has other clients, but should be aware of your needs / concerns. Since you are pretty invested with Lender B I think your best option is to call again and be firm about needing to discuss your questions / issues.
Do you know if your loan has been to underwriting yet? - I do not know yet. I hope they are have started the process. Last week when i spoke to LO he said tomorrow would be final day for Appraisal to come back and if not, he can expedite the process.
I am really worried about the silence for past two days given the fact he was really responsive and have been in constant touch last week. Planning to follow up tomorrow and see where it leads..!! Fingers crossed..!!
Salary: Will the wrong information mentioned in my Application come back as a Problem? There should not be issue with affordability - I have no other loans except for Car loan and credit score @ 760 range.
LO: I am just worried about my LO - He was really response the first week but i feel its not the case any more. No sure whether they are overwhelmed with work and I did not want to make him mad. So planning to give 1 more day before i follow up with email or Phone. Should follow up constantly?
Closing: I am 15 days away from Closing and Appraisal is yet to be completed. Further I have some funds in different banks and planning to move them to my primary checking account before getting Cashier check for closing - Can i do this or will it raise a flag to u/w on day of closing?
I am really stressed out since LO has not come back with any response - Not sure where my Appraisal and U/W process is at right now. Given the time frame i was expecting an Daily update or update once in 2 days from LO and after reading about it online, i understand how the system works.
Not sure if everything is going as per process and i am stressing out unreasonably - Any thoughts? Advice?
Salary- I would think you are fine as long as you qualify with your correct salary.
LO- Sometimes the loan officer doesn't know anything. At this point, he is the middle man between you and underwriting. When you do follow up, be sure to think ahead. If you ask and question and it isn't relevant yet, ask him when it will be. Try to get better at communicating on your end so you don't have to feel the need to contact him daily. If you have contacted him, I would think he should get back to you within 24 hours even if just to say he is waiting to hear from someone else.
Closing- I assume you sent bank statements for all of the accounts you will be pulling funds from? If not, this will shut your whole loan down. All funds have to be verified. This is probably the biggest potential problem I see out of your whole post. As for the appraisal, they are usually one of the very last things done. If you have provided the proof of funds for all of the accounts, you should be OK to move them. You may have to provide updated statements, but honestly, you may have to do that right before they clear the loan to close anyway. (Depending on how old the statements they currently have are.)
It is too late to do anything, but this is why the best rate is not always the best option. Especially for a first time home buyer. Hopefully this will a lesson learned, and hopefully it will not be a hard lesson. Typically, in my personal experience (two home purchases), I heard from them about once a week. I contacted them if I had a question.
Closing- I assume you sent bank statements for all of the accounts you will be pulling funds from? If not, this will shut your whole loan down. All funds have to be verified. This is probably the biggest potential problem I see out of your whole post. As for the appraisal, they are usually one of the very last things done. If you have provided the proof of funds for all of the accounts, you should be OK to move them. You may have to provide updated statements, but honestly, you may have to do that right before they clear the loan to close anyway. (Depending on how old the statements they currently have are.)
It is too late to do anything, but this is why the best rate is not always the best option. Especially for a first time home buyer. Hopefully this will a lesson learned, and hopefully it will not be a hard lesson. Typically, in my personal experience (two home purchases), I heard from them about once a week. I contacted them if I had a question.
Closing- Yeah, I have shared my statement as of Date of application with their respective balance. I will be moving from Savings to Checking in my primary bank and will move some $ from another bank (that has no branch in my state) to my primary bank to get cashier's check. so when i provide updated statement everything should balance properly but they will be different from my previous statement.
I read good review about the LO online and the Lender B was a national bank. And i have to be honest, i fell for their lucrative rate (.5% diff) and lesser cost. Thanks for taking time to respond.
Closing- Yeah, I have shared my statement as of Date of application with their respective balance. I will be moving from Savings to Checking in my primary bank and will move some $ from another bank (that has no branch in my state) to my primary bank to get cashier's check. so when i provide updated statement everything should balance properly but they will be different from my previous statement.
I read good review about the LO online and the Lender B was a national bank. And i have to be honest, i fell for their lucrative rate (.5% diff) and lesser cost. Thanks for taking time to respond.
What do you think is required when a company offers rates that others can't match?
The answer is : less infrastructure, fewer salaried employees, longer wait times, and greater stress.
Yep, there's a reason they have to offer lower rates,.......because they can't get them out the back door. When I first came to my current employer, there were so many growing pains, I came so close to talking to other companies. That is not what is going on here. A good friend and former boss shook some sense into me, reminded me I had crossed off almost every "must have" on my list before coming here. She was blunt with me, shared her challenges and pointed out friends at other companies, and their complaints - we were all dealing with growing pains. She made me see it clearly and that I needed to hang in there. But one thing has been consistent over the years when we compared notes - the big boxes, the only way they can get talent is with hefty signing bonuses that tie a loan officer to a company anywhere from one to three years. And the only way those bought and paid for loan officers can get someone to apply is to offer rates at rock bottom prices. I worked for one (BOA) and almost forgot my lesson and came close to working for another (CapOne) almost 10 years later.
The model for the big banks is loan officer takes loan app and moves on to the next file. One and done. When I was at the one bank, I was chastised by my manager for going out of my way to help a past customer with an identity theft problem. This manager was a lifer bank employee, came from the banking side and was promoted into mortgages without one bit of mortgage experience to be a branch manager for a mortgage loan office. She alienated most of the staff. She retired, then went to work for the other master of one and done. (Think stagecoach). By now, she knew the business model well.
Call the loan officer and email at the same time with the same message. You've patiently been waiting for a return call, but since you are closing in 15 days, which means your CD needs to be issued in 10 days, you have no choice but to escalate to his manager. And every 4 hours you will continue to escalate until you have someone's attention. (And leave that voicemail if need be). Play hardball. You are being set up to default on your contract, only because the LO assured you there was plenty of time. That low rate is meaningless if you don't close on time (or at all - if the seller gets ticked,).
The quickest you can legally close someone for a purchase is 7 or 8 days. Business is brisk, most loan officers are working a full book of business. Your biggest challenge right now is to either get this guy to move, or find someone that wants to break their neck to get it done. The time to talk tough is now. You set your expectations and light the fire and keep them on track.
Good luck.
(BTW, growing pains are a thing of the past and my CDs for July have been issued. We started working on August yesterday). Not everything must be down to the wire.
Thanks for the response Everyone. My Loan Officer finally called me back Few minutes before close of business and it was not a good news:
He said 10/1 ARM cannot be done for my immigration status (Non Permanent Resident Alien) unless i do a 30% down payment. I signed application 13 days before with immigration status called out (10/1 ARM locked @ 3.25% with 15% down payment) and i got this update today after brief days of silence. Not sure if why he did not know this was a portfolio loan and cannot be done without 30% down for my immigration status.
Now the only option he gives me is a 7/1 ARM at 3.5% or 30 Year at 4% with 15% down payment. Adding to this the appraisal has also not started yet and he is hoping to start soon.
I am not sure what should be my next step - Should i talk to the LO again or his Management at US bank and ask them to honor the rate, since everything is signed for? (I know what the answer would be) or just bite the bullet and take 7/1 ARM ? I am not sure if it is wise to walk out at this point given closing is in next 15 days. And with the Seller, i am sure pushing closing date will be a problem. Further i am not sure if i am liable to pay the application fee if i walk out.
I am hoping to be there for 7-10 years and not sure how 7/1 ARM will span out with additional refinancing down the line.
My previous Lender A is ready to start the process and will try his best to close by 11th but still cannot promise (understandable). Lender A is giving me 30 year @ 4.125% with No Origination fee or 4% with origination fee around 900$.
Thanks for the response Everyone. My Loan Officer finally called me back Few minutes before close of business and it was not a good news:
He said 10/1 ARM cannot be done for my immigration status (Non Permanent Resident Alien) unless i do a 30% down payment. I signed application 13 days before with immigration status called out (10/1 ARM locked @ 3.25% with 15% down payment) and i got this update today after brief days of silence. Not sure if why he did not know this was a portfolio loan and cannot be done without 30% down for my immigration status.
Now the only option he gives me is a 7/1 ARM at 3.5% or 30 Year at 4% with 15% down payment. Adding to this the appraisal has also not started yet and he is hoping to start soon.
I am not sure what should be my next step - Should i talk to the LO again or his Management at US bank and ask them to honor the rate, since everything is signed for? (I know what the answer would be) or just bite the bullet and take 7/1 ARM ? I am not sure if it is wise to walk out at this point given closing is in next 15 days. And with the Seller, i am sure pushing closing date will be a problem. Further i am not sure if i am liable to pay the application fee if i walk out.
I am hoping to be there for 7-10 years and not sure how 7/1 ARM will span out with additional refinancing down the line.
My previous Lender A is ready to start the process and will try his best to close by 11th but still cannot promise (understandable). Lender A is giving me 30 year @ 4.125% with No Origination fee or 4% with origination fee around 900$.
Any thoughts?
I sent you a direct message. I work with an open access credit union that specializes in non perm residents. This is such an individualized journey down the rabbit hole, it's not appropriate to ask you the questions I need answers to on an open forum. I sent you my contact info. Contact me if you like, no pressure.
SmartMoney I have to say I really enjoy reading your posts. They are informative and you explain things completely so it's easy for people not in the biz to understand.
Quote:
Originally Posted by SmartMoney
(BTW, growing pains are a thing of the past and my CDs for July have been issued. We started working on August yesterday). Not everything must be down to the wire.
I have to say I'm jealous! I'm a closer, and I have quite a few files that have not had CD's signed yet. That means they will be pushing to get them tomorrow so I can doc, fund and record Monday. Yay.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
