Long delay in underwriting..

[Anonymous]

I'm moving from the having kittens page to the unhappy and ready to find someone else to finance me phase. I've had a loan app in since july 2nd. I paid for an bank appraisal up front since I didn't think the asking price was in line with the value. The asking price was 279,000, the appraised value was $270,000. This was a 3rd floor unit with a big terrace (almost 800sq ft) The two comparables in the the bldg, the unit above with only a balcony went for $250,000, the unit below (view obstructed by 2 story bldg next) door sold for $199,000. The other comparable was not in the bldg. To make a long story short, the underwriter did not like the appraiser and said the price was not sustained by the appraisal with the comparables given. It was redone with the unit next door on the same floor with identical terrace with 50 sq ft less in the unit. It sold for $286,000. The appraisal was resubmitted with the supporting documents last Tuesday. I got a call today saying that no news yet. I originally was looking at an Aug 15th closing date. I've got to give my landlord 30 days notice by August 1st so I can get out by the end of August. I've had every document under the sun in there weeks ago, including documents showing I attended a first time homebuyers class. Is this anywhere near normal? At this point, I'm thinking about looking at someone else.....this is really hacking me off. My mid credit score is 765, I'm putting 20% down.

Company is Chicago Bankcorp

Message Edited by KevinB on 07-28-2008 06:42 PM

[ShanetheMortgageMan]

Definitely seems like things are moving slower than they should for you.  Appraisal review does take a little bit of time, 1-2 days tops (or in some situations 4-5 days if it's a really tricky appraisal and a "field review" needs to take place)... however with your scores and down payment, I'm assuming you are doing conventional financing, and with most lenders the turntimes for conventional are much quicker today than FHA.

It sounds like this is a condominiun, do you know if this is on Fannie Mae's approved condo/PUD list?  https://www.efanniemae.com/sf/refmaterials/approvedprojects/.  If it's not, then some extra time should be put aside to make sure the condominium fits "warrantable" guidelines.  The lender usually can't start that until the appraisal is complete unless they get a "condo questionnaire" completed ahead of time, but even then sometimes they want the appraisal too.

When did the "unit next door" sell?  In the past 6 months?  When did the $250k sale with the "only a balcony" happen?

[Anonymous]

The ones above and below sold within the last 6 months. The one next door with the same size terrace sold Dec 15th.

I'm doing conventional. Its not on that FHA list you gave me.


The appraisal was submitted to the underwriter for the second time last Tuesday. No change in value , just the supporting comps.

I just got a little more update, now they want a "trending analysis" from the appraiser.


I'm about to see if they still sell cattle prods at the feed and tack store. Maybe that will get some movement.

Kevin

[ShanetheMortgageMan]

That list is for conventional, not FHA.... FHA = federal housing administration & is government financing, Fannie Mae is conventional.  If it's not on the list then the condo still has to be determined as "warrantable" and that could be the hold up.  I'd ask your loan officer if they've already reviewed & approved the condominium.

Requesting a trending analysis seems normal since a comparable from 12/15/07 is being used.. they want to see if values have been going up or down, if they've been going down, then the more recent comparables being used are going to be a better indicator of value, and it wouldn't look like the sales price could be supported.  If values are stable from 12/07 until now, then that comp could be fine and all will be OK.