banker headache

[JAMIE Doyle]

ok so i'm in the process of buying my first home...

i found a 100% loan through key bank and since we're trying to save every penny that we can for the new place we thought this option was perfect. well my banker has been telling me for a few weeks now that everything was fine and going smooth but yesterday (3 days before closing) he calls me and says we need an extension... when asked why he told me that there was a lock put on my loan that was approved 3 weeks ago and now the couldn't order the appraisal until the lock was lifted.

well i just try to keep telling myself that this is part of the process and dont get too down on the situation. we got our extension but the sellers are desprate to get out of this property and are getting a little worried. when i try to speak with anyone else with key bank i'm told i can use aoother banker if i want to start the whole process over again. :-(

any words of encouragement or advice out there for me?

:cry: :cry: :cry:

[J Scott]

Stay on top of your broker, and make sure you understand what is going on every step of the way...

Here is something to consider -- once the broker submits the loan to underwriting, the underwriter will take a look at all the documents and data and will come back with a list of additional things he needs to underwrite the loan. This list is called a stipulations sheet (or "stip sheet") and it will tell you exactly what's standing between you and your loan.

The underwriter may submit multiple stip sheets throughout the process, but at any point in time, you should be able to find out what's holding up your loan and do what it takes to move things along.

Until the stipulations on the stip sheet are all cleared, the loan is not approved.

In this case, I'd be concerned if you're three days before closing and the appraisal hasn't been ordered. Depending on how the appraisal is being done (is it through HVCC rules?), it could take up to a week to get the appraisal ordered, done, and back to the bank.

So, even if there weren't a "lock" on your loan, it's quite possible you wouldn't be able to close in three days.

Ask your broker flat-out what the stip sheet says, and that should give you an idea of what the hold-up is...