The other knew the finanical requirements ahead of time yet they insisted they wanted to apply, but they didnt make enough money.  

Actuals are more valuable and consistent with volume from multiple properties but still relevant obviously come tax time.That's why people dismiss, or at least should, dismiss prop forma numbers provided by commercial brokers and insist on seeing last 3 years actuals as well.  

I probably would have spent a few hours asking questions I didn't even care about, just to run up the bank's tab for providing the off-site notary service (though I'm sure at least part of it was charged to you on the HUD)...Next time, I would insist on using your own title company...

I insisted that I talk to him because most of my questions are legal in nature.

If the client insists, don't sign the contract. 

Something doesn't add up.Especially if this is your first investment, insist that the house be vacant when you close, or move on to another deal.

As a landlord, if I found myself in a situation where my tenants were setting up a daycare, I would consult with an attorney and insist that any clients sign a release of liability waiver.

If licensing is something you're going to insist upon, have them show you proof of insurance good for the foreseeable future, and look up their license.

But I didn't have a problem from the lender.The lender did insist on estimates for all work from 2 different general contractors before closing though.  

Savvy buyers, and most are these days, will insist on a sewer scoping and will want the repair completed before closing.