Underwriting is Getting Tricky!

We have about eight sales pending and all but one have had challenges with underwriting. It's not that the underwriters are denying loans, but they ask for more and more information and substantiation before approval. Underwriters ask for banking and deposit information to assure the lender that buyers are not borrowing down payments and that there are sufficient funds to close, and then ask for the information again later. Pay checks have to show 30 days and one of our clients showed 28 days... She is paid every two weeks. 14 + 14 = 28. Not good enough.

Water tests, septic pumping, reinspection after the storm, repairs made to properties with receipts and certification of repairs. The list goes on and on and on!

What is the solution? Keep giving the loan officers what they are asking for; plan that they will ask for the same thing more than once; and plan a realistic period from contract to closing. Especially be realistic about the time it takes to get full approval from the lender. Have faith that if your lender has given the buyer a preapproval; that nothing big changes in your financial picture; that if the house/condo appraises and buyers and sellers are working together to make it a win-win, then the loan will eventually get approved. DON'T buy a car or boat or charge furniture on your credit cards!

It is frustrating for buyers and sellers, but REALTORS are here to help. We've even scraped and painted a house to get the loan approved! Hang in there and have a Plan B -- which is that the loan approval date might need an extension and the closing date might need to be moved also. In the end, you'll be able to move into a great home -- or sell a home and start a new chapter in your life.