This might be long, but it’s going to be educational for many people out there. At the same time, I’m hoping to find some words of wisdom from more experienced members.
I am purchasing a home with a family member. We both were lucky enough to find homeowners who had just been released from a seller’s agent contract. So we’re buying direct and that got us a better deal. So contract is signed and we began the loan application process. The first appraisal comes in 10% lower than the contract price. Now the home is one of a few unique structures in the neighborhood, and the comps. used were not appropriate. So we go for a second appraisal and that comes in higher than the contract price. The underwriting process moves along and then they request an appraisal review because the two primary comps were more than 6 months old (about a year old).
Now this was last Friday. My loan officer told me on Monday that the review was not a field review but just a desk review. This review was ordered by the lender, and unlike the first two appraisals I was not charged a fee.
My loan officer told me that he’d get back to me with the results of the report as soon as they come out. I’m starting to get very nervous because today is the last day of the lock and the end of the 45 day period in the contract to secure a commitment from the lender.
I contacted the loan officer and could not reach him in the late afternoon. So I called up the company doing the appraisal review. They told me they issued the report at 2 PM. I tried two more times over the next two hours to call the loan officer on his mobile. I also sent him a text asking him to update me so that I understand the situation. After waiting until 9 PM, I texted him again to ask him not to forget to update me. At this point he tells me that it is too late and that he would talk to me on Friday, in a very demeaning manner. He also asks me to stop texting him. The exact texts were not vulgar but also not pleasant. I wished him and his family a happy thanksgiving but asked that he give me an update so that I could have a good thanksgiving as well. He asked me to stop texting him.
The kicker is that I got an email asking me to e-sign forms to extend the lock by 2 weeks for a rate of close to 0.31% which is a significant sum. I was trying to call to understand what is going on, but because I could not contact him, and because I do not want to lose my rate, I felt that I was being forced to sign without understanding the situation.
I feel like I am being extorted. It’s their fault that the closing is delayed, but I’m paying for extending the lock. Interest rates have gone up significantly since I locked, so I feel that they wouldn’t have a problem if they were able to get rid of me. What are my options here? If my loan officer is not communicating with me and I’m having to guess at what is going on, but I also cannot afford to leave him at this point. I feel like I’m being held hostage financially. I don’t know the results of the appraisal review and I don’t know how long this might drag on for.
Does anyone have any advice on what to do here?
1st: What you are experiencing is fairly normal, which is probably why the LO wasn’t in a huge rush to get back to you. He definitely should have set proper expectations once the 2nd appraisal / desk review was being completed; however, (not making excuses but…) since it’s the end of the month, with a holiday, as a mortgage professional I can understand. It’s very, very, easy for us to forget that our customers aren’t as savvy with the typical occurrences/lingo/jargon/processes and the little things we take for granted (knowing your lock would be extended…knowing there’d be a sales contract addendum extending the closing date..) need to communicated so our borrower isn’t having a meltdown on Thanksgiving 😉 So, just relax, this definitely isn’t out of the ordinary.
2nd: I’m like, 99.9% sure that your lock will be extended and you likely will not be charged for it since the delay was not your fault. If you do see they charged you for it, just ask nicely if they will change it to lender paid since it was a 3rd party vendor/lender delay — sometimes they will.
3rd: i hate to be the bearer of bad news (and certainly not trying to be rude at all) but, your loan isn’t the only one being worked on so, yeah, the desk review may have been sent over at 2PM; however, if you polled every mtg person on here id be willing to bet none of them would either expect or be surprised that you hadn’t been contacted about it yet. Why? Well, that’s a loaded question and if you want more details i can give them but simply put, there are processes in place for a reason (to minimize the chaos — and all the mtg ppl went lol) and yes, even though your lock was expiring and the contract expired – your file was t ‘on fire’ — if you were sitting at the closing table, your file would be on fire. But since your file hasn’t even been final approved yet, it wasn’t a priority…so the UW looking at the Desk Review at 2:04 PM was just not going to happen. In fact, they probably don’t even know it’s in yet. Why? bc they also have SLAs (service level agreements) for file & document review turnaround times and, again, your file wasn’t on fire so it will likely be reviewed monday.
4th: I’m curious as to why, at this stage of the process, your primary point of contact is still the LO? The LO is the ‘sales-face’ and once Intent to Proceed has been established and disclosures sent/signed, your loan is then moved to the fulfillment/operations-face and you are assigned to a processor. The processor is responsible for collecting your documents, prepping your file for underwriting and closing, ordering the appraisal(s)/title work, updating the insurance, verifying employment, and giving you regular status updates (in addition to the multitude of other things they are pressed to do — they are definitely rock stars!!). You should have been given their information and/or you may have already spoken with them, although, if you’re like many customers, you have a hard time quitting the LO since that was your initial point of contact and who you developed the initial relationship with. With the exception of the lock extension, in cases like this, the LO just acts like a middle man. In that, you ask him ➡️ he asks the processor ➡️ the processor tells him and then…↩️ So, if you have the processor’s info, use it and then CC the LO if you want to keep him looped in….
which brings me to….
5th: Although I completely understand and empathize with your stress, unless explicitly given permission to contact him that late, texting him after hours was maybe not the best thing to do and although he should have communicated with you before he left communicating with you if he hadn’t gotten a response from the lender yet, it would have been advisable to send him an email instead. I assure you he probably checks his email as often as his text messages, but at least thru email you are respecting his “off time”. Maybe he’s putting kids to bed, maybe he’s got his kids for the long weekend and is hanging out with them, maybe he’s traveling to see family, or maybe he’s just trying to decompress from a very long short week and doesn’t want to deal with something he couldn’t even answer if he wanted to anyway.
So, I wouldn’t worry about it. If you’re still tripping out, then send a group email requesting the following information, preferable by EOB Monday:
Lender to confirm lock has been extended, how long, and who pays.
Confirm desk review sent Wednesday was received and if so, would they please email you a copy.
ETA on when UW is expected to review.
Sales Contract addendum extending closing date to: _________ is or will be prepared & whether you should expect to get it to sign or whether it will just be executed at closing.
When you can expect the results from the UWs review and inquiring whether that information can be forwarded to your email or, in the event of any significant changes, whether the processor or LO will call you to discuss.
The best person to contact if you have questions about the desk review. (i always recommend email, not only bc it’s easier for everyone but also because you have written, time/date stamped confirmation of what and when you were told stuff).
sorry this got long AF but, you are obvs stressed out and your message had a lot of different variables to be addressed.
TL;DR: don’t stress, this is normal. contact your processor. use email after hours.