If this helps with current info.

I get that title insurance e saved you once but really I should be thanking them , no I think they have made themselves into this role where they want everyone to believe nothing can be done without them and the time they take, it takes them 2 days to walk a piece of paper across a room.As fir the lady she should be helping her clients the people who pay for thier services to resolve these type issues not act like she's the great almighty God of real-estate transactions who no sale can happen without her blessing. 

That may help answer your question.

I'm not sure what the steps are from here to obtain financing and would love any help.

So, I tried to help the situation by getting a contractor to go replace the floor and remodel the bathroom so that the house is nicer for her.

Don't waste money if we can help it.

Hope this helps keep a finger on the pulse here.

I guess the only good thing about a prepayment penalty is that is is considered prepaid interest on your 1099 statement which may help with tax deductions.

Happy to provide feedback if helpful. 

Need help getting clarity on the best path to take. and would like to be briefed on the recommended path on best next steps.