I’ll try to make this somewhat brief so you don’t have to through all the gory details of what my client had to put up with but I think you’ll still be able to get a good idea of what happened.
My client wanted to get a retirement home here and had sold their home in Toledo. Their finances were very solid and they had excellent credit so there would be no trouble getting a loan.
We got through various bumps along the way and were down to the week of the closing and were just waiting to hear the loan got final approval. At that point the you-know-what started to hit the fan. The first thing that came up was there was a mistake made in the early calculations which changed what my client would need to have for closing.
The next thing that came up was that the lender wanted to reverify my client’s employment. Usually that wouldn’t be a big deal except for the fact that my client was a teacher and schools aren’t open in the summer. We did get that resolved but it wasn’t a welcome surprise.
What made these things a real problem was that my client had left Toledo on Monday to drive down for the closing on Friday and was part way here and had to go back home to deal with some of these issues.
Because of the last minute change in the funds my client had to bring they had to do a transfer from their retirement account. Unfortunately this took 2-3 days which meant we could not close on time and so we had to extend the closing date.
To add insult to injury, the bank then started nit-picking on where every penny came from that was in my client’s account for their closing funds. Even though they had many times what they needed for closing in their retirement account, the bank said those were not liquid funds and didn’t count and wanted documentation of where all the money came from that was to be used for closing.
It even got to the point where they wanted proof of $1200 cash my client deposited into their account (which was money their son repaid on a loan). For someone who had more than enough money in their various accounts and has always kept everything in relation to their finances very clean, it was frustrating to be dealt with like someone guilty who has to prove their innocence.
After a lot of work we finally got the bank approval for the loan 2 days before the closing and my client had to really move to get here in time.
The ultimate outcome, the deal did close.
Looking this over again I can see that you’re not really getting to see even a small part of everything that happened during those last 2 weeks. Take what I wrote about here and multiply it by about 5. Let’s just say that it was very upsetting to my client.
I won’t say which lender they were using but it is one of the big ones that recently had their foreclosure filings halted due to improper paperwork.
From my experience in dealing with some of the larger banks I can’t say this is all that unusual (although maybe more extreme than most cases). It is because of this fact and because of the fact that with some of the larger lenders it is harder to get a hold of someone to find out what is happening that I suggest working with a mortgage lender or smaller bank to get financing.
I highly recommend that you take this advice to avoid having to go through this kind of nightmare.
Make sure you know as much as you can about buying so that you don’t make any major errors and experience the least amount of stress as possible. Visit the resources section of my site, Clearwater Real Estate Resources.
Ron Nedd has a comprehensive site for buyers of homes, condos and townhomes with extensive information and tools for buyers, such as MLS access, at www.searchdunedinhomes.com