Posted by JPiper on January 19, 2001 at 24:52:04:
In my mind step one would be to stop, take a couple of deep breaths, and calm yourself. What is required of you here is to assess your situation…and that should be done when your mind is calm.
The fact that the broker submitted your application as an owner occupant may have slowed the loan process because perhaps he had to change lenders. Every lender doesn’t have the same programs. Perhaps he’s taken your deal to a different lender to get an investors loan with a 10% down payment.
Either way, while that may be creating stress for you, and while he may be creating stress for you by claiming that you have made this difficult, the fact is that this shouldn’t necessarily have slowed the process that much. If he ran a credit report he should be able to still use it. He may be able to use the appraisal. He already has the 1003. I would think this loan should be able to happen by the 31st.
If there is something in this process that delays the loan, then I suspect your contract is contingent on your ability to obtain financing. If this is the case, the deal is off…there is no penalty. That’s what contingencies are for. Any earnest money you have deposited would be returned to you. The seller has no lawsuit with merit.
If there has been a delay caused by the submission of a false application, then the problem in my mind would be for the real estate broker/mortgage broker. What could be at stake for him would be his licenses to do business.
But things don’t have to get there. I only mention all of this to point out that if you have a financing contingency in your contract, if you don’t get the financing by the 31st, then the deal is off (unless you purposely delay and become uncooperative at this point).
But let’s assume that you have a deal that you want. How difficult would it be to request an extension from the seller for a few days, a week, for the purpose of finalizing your loan? This too happens all the time. Unless the seller has a higher offer lurking in the wings who is prepared to close, the chances are that even if you need to extend somewhat, you’re still his quickest deal. My guess is that your broker has seen and done this numbers of times.
So the bottomline is that your worries up to here are rather baseless…like most worries are. Now whether this is a deal? I don’t know…you haven’t given us the information with which to decide that. Whether you have enough money to close? Again, we don’t know.
I would advise you to call Ed at 909-944-0199. He’s right your backyard. Run your deal by him to get his opinion. Start focusing on what you need to do, rather than worrying about things that “might” happen. This is the same deal that you made your original offer on…nothing is different. If it was good then, it’s still good. You’re doing an NOO loan…just as you wanted. You have the same money in the bank now that you had when you made the offer. Relax…give Ed a call, discuss your deal.