Potential pitfalls of two lenders working on alike FHA mortgage loan?
I don't want to get into the details in this forum, but long story short:
The underwriter who be preparing my loan didn't get it done in time for closing (they've have the paperwork for over a month and cleared all conditions a while ago) - we have nonetheless to receive the "clear to close".
They have also been unbelievably unresponsive to my broker (even on the scheduled closing date!).
I extended my closing date another week but I'm concerned the loan still isn't going to be finished.
My broker and I decided to push this through another lender which guaranteed he could own it done in a week.
Essentially, we are going to have the two lenders see - the fastest is the one I'll use for the loan and finally go to closing.
The second lender is aware he is racing the first one.
Are here any potential pitfalls (besides this is bad business for my broker)?
I'm worried FHA will see two loans being worked on one and the same property and that could mess something up?
We have to get this done subsequent week or I'm homeless...
I should add we are well qualified for this loan and here is no reason we shouldn't get it.
Please, no solicitation responses.
Answers:
Here is the problem, it CANNOT be done.
When an FHA loan is originated on the FHA portal website, a case number is select for that address.
You cannot have two case numbers for alike property. The FHA portal will not allow it with two different lenders.
So, I don't know what the second broker is trying to pull, but he CANNOT even gain a pre-approval with an FHA underwriter without a baggage number until the first loan with the first lender is CANCELLED. Source(s): former FHA underwriter.
There is no excuse why the first loaner shouldn't have that done in time unless within is something they are waiting on on your end or possibly they could be completely swamped. Me and my fiancee are currently buying a home and we both are young and hold only a limited amount of credit and it took us nearly 2-3 weeks to get everything ready because we have to go the "extra mile." But even when we finished, it went to underwrite and it only took a week for them to respond and write it up. It also had alot to do near my mortgage guy, he's great and knows ow to get it done. There shouldn't be any judgment why it should take that long because even my loaner is swamped and they finished fast. It be a good idea to capture another one, thats what I had to do in the launch too. If they initial one has EVERYTHING ready except this and they enjoy your contract, you might need to send a notarized dispatch explaining why you switched, otherwise it won't be a problem. Good luck to you too :)
You are going to enjoy issues....you have an assigned FHA case # and an appraisal which would enjoy to be assigned to the second lender in order for him to take you closed. The release of the case # has to come from the first lender.....adjectives of this on top of actually getting your record through underwriting.....I don't see any of this happening within 1 week Source(s): I'm a mortgage banker/broker
Sorry but two lenders can not do the same loan. First the FHA suitcase number is issued to the address and the appraisers license number and only one number can be issued. The 2nd lender can request the FHA case number to be released but you will own to have another appraisal done due to the first lenders name is on the report as client.
The appraiser can not tuning the client name on the appraisal per USPAP mandated by federal canon. The appraiser must treat this as a new assignment and re-appraiser the home. Only one person (lender can work on this at one time) it sounds resembling you have opened a can of worms on this one and it may pilfer longer to sort all of it out. This was a stupid perception on your brokers part and sounds like he does not know what the hell he is doing and my motive you to be homeless. THIS CAN NOT BE DONE! Source(s): Certified FHA appraiser
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The underwriter who be preparing my loan didn't get it done in time for closing (they've have the paperwork for over a month and cleared all conditions a while ago) - we have nonetheless to receive the "clear to close".
They have also been unbelievably unresponsive to my broker (even on the scheduled closing date!).
I extended my closing date another week but I'm concerned the loan still isn't going to be finished.
My broker and I decided to push this through another lender which guaranteed he could own it done in a week.
Essentially, we are going to have the two lenders see - the fastest is the one I'll use for the loan and finally go to closing.
The second lender is aware he is racing the first one.
Are here any potential pitfalls (besides this is bad business for my broker)?
I'm worried FHA will see two loans being worked on one and the same property and that could mess something up?
We have to get this done subsequent week or I'm homeless...
I should add we are well qualified for this loan and here is no reason we shouldn't get it.
Please, no solicitation responses.
Answers:
Here is the problem, it CANNOT be done.
When an FHA loan is originated on the FHA portal website, a case number is select for that address.
You cannot have two case numbers for alike property. The FHA portal will not allow it with two different lenders.
So, I don't know what the second broker is trying to pull, but he CANNOT even gain a pre-approval with an FHA underwriter without a baggage number until the first loan with the first lender is CANCELLED. Source(s): former FHA underwriter.
There is no excuse why the first loaner shouldn't have that done in time unless within is something they are waiting on on your end or possibly they could be completely swamped. Me and my fiancee are currently buying a home and we both are young and hold only a limited amount of credit and it took us nearly 2-3 weeks to get everything ready because we have to go the "extra mile." But even when we finished, it went to underwrite and it only took a week for them to respond and write it up. It also had alot to do near my mortgage guy, he's great and knows ow to get it done. There shouldn't be any judgment why it should take that long because even my loaner is swamped and they finished fast. It be a good idea to capture another one, thats what I had to do in the launch too. If they initial one has EVERYTHING ready except this and they enjoy your contract, you might need to send a notarized dispatch explaining why you switched, otherwise it won't be a problem. Good luck to you too :)
You are going to enjoy issues....you have an assigned FHA case # and an appraisal which would enjoy to be assigned to the second lender in order for him to take you closed. The release of the case # has to come from the first lender.....adjectives of this on top of actually getting your record through underwriting.....I don't see any of this happening within 1 week Source(s): I'm a mortgage banker/broker
Sorry but two lenders can not do the same loan. First the FHA suitcase number is issued to the address and the appraisers license number and only one number can be issued. The 2nd lender can request the FHA case number to be released but you will own to have another appraisal done due to the first lenders name is on the report as client.
The appraiser can not tuning the client name on the appraisal per USPAP mandated by federal canon. The appraiser must treat this as a new assignment and re-appraiser the home. Only one person (lender can work on this at one time) it sounds resembling you have opened a can of worms on this one and it may pilfer longer to sort all of it out. This was a stupid perception on your brokers part and sounds like he does not know what the hell he is doing and my motive you to be homeless. THIS CAN NOT BE DONE! Source(s): Certified FHA appraiser
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