WAITING TO CLOSE

[Anonymous]

Our loan went to underwriting over 7 days ago and we have heard NOTHING I called LO and she says everything looked great on her end and she is just waiting to see if they have any conditions to come back with. She said she should of had it back yesterday but nothing then or today. I am starting to worry since we are set to close on 10/24 and on top of  that she call to say that USDA doesn't have fund and we have to wait on funding to close. Anyone know any info on the funding or why it is taking so long in underwriting without them saying anything.

[mamahearts]

A co-worker of mine has a USDA loan and she said the day BEFORE closing her loan officer told her there was no money in USDA and they'd keep her informed.  Poor thing didn't sleep all night thinking her loan wouldn't fund, but it did!  I hear it's pretty common, but very stressful!!! Good luck to you!  As far as what's going on with underwriting, I'm told (and I'm going to have to remember this myself because we're set to close a week later than you!) that with all the refi's lately everyone is super busy (UW, appraisers, etc).  So I'm sure you'll hear something soon! Let us know how things go and what your conditions are!

[ShanetheMortgageMan]

For USDA loans funding will not be available for a short period of time after the new fiscal year 2012 (which started October 1st). During this temporary lapse of funding, they will still be issuing conditional commitments "subject to the availability of commitment authority" and lenders are still fine to close this loans as scheduled, however USDA will not "obligate" the loans until funds become available. This means the lender will assume all default risk (and not sharing it with USDA) until the funds become available.

What does it mean to you, as the consumer? That because the lender has to assume all the risk, there may be some lenders who will shy away from funding loans until funding becomes available again, which from my discussions with a few different USA offices has been anywhere from a couple weeks to a month. Shy away could mean stop funding them all together or only funding a certain dollar amount (i.e. $50,000,000 in USDA loans for conditional commitments which have that "subject to" verbiage). There are several lenders who have indicated there have been no interruptions with their USDA loans - it just depends on what each lender wants to do.

[Anonymous]

Spoke with our lender and they are not taking conditional statements she just said we would just have to sign weekly extensions on closing until funds become available again This is so disappointing since we were to be out of our rental by Nov. 1 st. So we have no choice at this point by to extend our lease. This whole process has been a nightmare. Our last home was so easy. We found the house , made the offer and closed all within 30 days. We are 50 days in now and still have no closing date

[JM-AM]

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@Anonymous wrote:

Spoke with our lender and they are not taking conditional statements she just said we would just have to sign weekly extensions on closing until funds become available again This is so disappointing since we were to be out of our rental by Nov. 1 st. So we have no choice at this point by to extend our lease. This whole process has been a nightmare. Our last home was so easy. We found the house , made the offer and closed all within 30 days. We are 50 days in now and still have no closing date

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See if your present landlord will accept a month to month. If it is possible offer a few more dollars a month to entice the offer if landlord turns down original month to month. Can add many different things to make it enticing to present landlord. Can offer to pay one additional months rent when moving out from month to month etc etc...

If landlord is not willing to work with you on a month to month then see if it is possible to only sign 3 month lease or a 6 month lease. Use your imagination to come up with things to help you and landlord come to an agreement.

While some landlords are not very flexible many of them are........

[IOBA]

I am sorry for your delay.

I agree that you should ask your landlord for a month to month lease.   You can offer a bit more money per month or offer to pay an extra 15 days of rent on the back end.

If I was the landlord, the same amount of money would be fine, but I would still want 30 days notice.