Home Mortgage process takes forever with ridiculous requirement (loan, credit, requirements)

[jessieryan202]

Hello everyone,

I'm a first time home buyer in Texas. All of my excitation is gone now when the loan documents take forever to be finalized. I'm buying a house with conventional loan from Wellsfargo.

I called the foundation services after receiving the inspection report. The quote turned out to be around $2000, which was lower than I expected so I proceeded with the buying process. I submitted all the documents needed to the bank and the loan processor said that I was very close to the final step.

Something unexpected occurred 3 days before I close.

An update from the appraisal team came in and required me to provide a foundation report. I sent the bank the quote (which includes the estimate cost plus the graph showing where the foundation needs to be fixed).
They refused to accept the quote and asked for a foundation report done by a licensed engineer.

I asked them why the quote wasn't accepted and they said: "Oh. Private foundation company might over charge you and they might not even be there to inspect and made up the amount."
I replied: "I was at the site and I saw the guy doing his job."
Then they said: "We don't trust private foundation services without a licensed engineer"

I was so pissed off at that point that I wanted to swear to their faces. I tried to negotiate with the bank to accept the quote but they still didn't. I ended up calling my realtor to let her know that I wouldn't be able to close on time due to that silly reason. She tried to contact them and no one picked up the phone.

I called a foundation engineer and it cost me $500 to get the report. I'm very frustrated right now because the process is dragging long and it's not even my fault at all.

My question is: Have you ever been in this situation? If so, what did you do?

Thanks for your advises.

[Brinson]

You expect them to just take a piece of paper written by god knows who with god knows how much experience as the final world?

They're investing in you and the house. If something goes south and the foundation skyrockets and you can't afford to fix it they might be left high and dry to pay for your house.

[Pfhtex]

Originally Posted by jessieryan202

Hello everyone,

I'm a first time home buyer in Texas. All of my excitation is gone now when the loan documents take forever to be finalized. I'm buying a house with conventional loan from Wellsfargo.

I called the foundation services after receiving the inspection report. The quote turned out to be around $2000, which was lower than I expected so I proceeded with the buying process. I submitted all the documents needed to the bank and the loan processor said that I was very close to the final step.

Something unexpected occurred 3 days before I close.

An update from the appraisal team came in and required me to provide a foundation report. I sent the bank the quote (which includes the estimate cost plus the graph showing where the foundation needs to be fixed).
They refused to accept the quote and asked for a foundation report done by a licensed engineer.

I asked them why the quote wasn't accepted and they said: "Oh. Private foundation company might over charge you and they might not even be there to inspect and made up the amount."
I replied: "I was at the site and I saw the guy doing his job."
Then they said: "We don't trust private foundation services without a licensed engineer"

I was so pissed off at that point that I wanted to swear to their faces. I tried to negotiate with the bank to accept the quote but they still didn't. I ended up calling my realtor to let her know that I wouldn't be able to close on time due to that silly reason. She tried to contact them and no one picked up the phone.

I called a foundation engineer and it cost me $500 to get the report. I'm very frustrated right now because the process is dragging long and it's not even my fault at all.

My question is: Have you ever been in this situation? If so, what did you do?

Thanks for your advises.

I respect your frustration, but contractors' estimates must be obtained from Licensed contractors. Yes you witnessed someone inspect the foundation, but if he was not a Licensed contractor who specializes in this kind of work, then, to the lender, he was just some guy with letterhead.

I think you should be frustrated by the fact that the update that informed you that you needed a Foundation report was shoddy and unclear. You should have been more specifically informed as to the need for a report from a Licensed Engineer. If I were you, I would complain about that part and demand reimbursement or Credit from the lender to cover that expense.

[SmartMoney]

I am curious was the appraisal subject to the engineer's statement? Was this something the appraiser questioned? Or did the home inspection trigger this inspection and the underwriter decided to add this requirement to the appraisal? Did an addendum tip off the UW there was an issue? I ask, because had it originally been an underwriter, I am betting the requirements would have crystal clear.

[TexasDillo]

I guess the OP disappeared on us. I'd also like to know the answer to SM's questions.