Can a mortgage co. process a loan in a week - Posted by Letty M. Johnson

Posted by HTG on June 26, 2002 at 06:52:04:

2-3 weeks sounds right. I seriously doubt they could do it in 1 week.about changing your contract with the builder. Yes you can as long as the builder will let you. If the builder is going to enforce the contract you have, then you have to abide by your commitment. The builder doesnt really care about any changes now since its time for them to be paid. They know that you have the loan so to them, its a mute point.Moving the closing date is not unusual.

Can a mortgage co. process a loan in a week - Posted by Letty M. Johnson

Posted by Letty M. Johnson on June 26, 2002 at 03:30:33:

Im scheduled to close on my new custom build home on July 3 in which is been delayed for 2 ½ months from the original delivery date of on or about April 20, 2002. As a single applicant my loan is approved under UN-STATED INCOME PROGRAM with a credit score of 00662,+0649 & 00681, paying a higher interest, higher closing cost fees with 10% down payment. On June 7th my status changed from single to married. On June 18th, I called the lender and the seller (builder) to notify them with the change of my status and requested to add my husband into the loan. By adding my husband or just utilizing my husband’s credit report with credit score of 00718,+0724 & 00731 on the NO-DOC LOAN PROGRAM, we will be able to take advantage of a lower rate, lower fees and possibly only 5% down payment. My seller (builder) informed me that they are not willing to change the contract because they are scheduling for us to close at the end of this month and the closing will delay if we change and add my husband into the contract. The closing date just moved up to the 3rd. Is this legal? Can I change the contract with the seller (builder)? Do I have any leveraged to shop for a better financing? My mortgage company also told me that it will take them 2 ? 3 weeks to re-process the loan. Is this true?

Your expert advise is greatly appreciated. Please help!!!

Re: Can a mortgage co. process a loan in a week - Posted by youngsterz

Posted by youngsterz on June 30, 2002 at 23:23:05:

If the hardline stance with the builder doesn’t buy you time, then talk to your local bank about a bridge loan. It’s a simple commercial loan and they may charge you a couple hundred bucks and an interest rate of prime plus a few points. If you have a good relationship with the bank and can show exactly what is going on and how you will pay it back within a month or two, you should be able to swing it. Such a loan could be funded within a few days if you press the issue.

Mind you, this is a not a deal for a mortgage company, but something to take up with the commercial lending group at an actual bank. Then tweak your long term mortgage as a refinance instead of a purchase. The bank may even try to entice you to bring the long term loan there. Worse case, they require it, but if they can put together a good loan, or at least a comparable loan, then why not.

Good luck!

Re: Can a mortgage co. process a loan in a week - Posted by Ed Garcia

Posted by Ed Garcia on June 26, 2002 at 10:34:44:


What we have here is a Crapshoot. Yes you can tell the builder that what he is doing is STEERING, meaning for him to require you to take his loan or mortgage company that he suggested, preventing you from shopping the loan, vesting of the property that is not to your benefit, and you do have legal rights and do not have to do it. Also he cannot alter or move up the date if it is not indicated in the original contract or purchase agreement.

However if you do not close in the given time indicated and agreed upon, he has the right to void the contract due to none performance.

Right now you’re in a catch 22. The builder wants to close as fast as they can in order to pay off or reduce the debt service of their construction loan. That’s they’re motivation. If you can convince them that you’re not going to budge and that these points are important to you, unless the builder can get more money for the house, they will work with you. The builder will know that you are qualified and the changes will take less time then it would take for them to replace you with another buyer and have that buyer start over from square one.

I would get heavy with the builder and tell them that your going to turn them into the DRE (Department of Real-Estate) as well as The DOC (Department Of Corporations) for STEERING.

Good luck,

Ed Garcia