Let me start by saying how much I detest red tape and poor lending decisions.
Now gather around as I tell you a tale of how I am trying ( for quite a while now ) to close on my home and get this paperwork finished. I have been working with this particular lender for months. In fact, ever since I chose to buy a home I have worked with them to try and keep the process as smooth as possible.
Well nuts to that.
So let me tell you one of the B.S. things that delayed my closing. On the day of my closing I get a message from the underwriters telling me they can’t proceed because the income isn’t reflecting accurately.
1. If you’ve read my blog previously, you know I had Covid-19 in January and lost about a month of pay. The lenders have been aware of this since January.
2. The lenders never bothered to take this into account during their calculations of my income. Thus my income didn’t reflect reality, which they were already aware of due to the mandatory quarentine.
3. On the day of closing they ask me to provide a letter from my employer stating the reason why I was out was for Covid-19 and to provide the dates for it. Mind you, they won’t proceed with the closing until they get this letter. Mind you, they had about 5 months to ask me for this and waited until the day of closing to ask and screw it up.
Thankfully my manager is a good sport and helped me out and got me the letter in record time. The problem of course is that then had to reschedule the closing since the appointment was past and the title company needed notice.
Enter this week….
I again set up and am ready for a closing date. Again the lenders have no ‘visible issue or missing items’to delay my closing. The seller and I begin to go to closing only to find out again that the underwriters have an issue. This time it’s wanting a receipt that shows who paid for the pest inspection and that it was paid!
Now let’s see what they have already and tell me if government regulations hurt free enterprise:
1. They have a completed form from the pest inspector showing the condition of the home and that the inspection was completed for me, the buyer.
2. They have a cleared check copy showing the inspector was in fact paid on that same date.
3. They have myself and the seller willing to sign an affidavit under penalty of law attesting to this.
Not good enough for the underwriters. Nope. They want an invoice. So they cancel the closing again. They could have said that the closing would not happen until that paperwork is finished before then.
So I call the pest inspector, get an invoice and submit it the same day. Of course I cant continue the closing for that date. Later that day the lending company contacts me to tell me to get another invoice with the words : paid or pain-in-full.
So I proceed to chew them out. The inspection is done. They have the required forms and an invoice and cleared check showing it’s paid. Nobody is contesting that I paid for the inspection. If the company can’t put two and two together to figure out that this is done then there isn’t anything I cant do to fix that. I would not go back and ask for yet another invoice. I’d rather dump the lender at this point.
Lo and behold, they accept the documentation and we get another closing date.
Does anyone doubt that this process is needlessly complex and pointless? There are a million ways to streamline this process but government and crappy bankers have to be removed from the process.for the free markets to create solutions.