Real Estate and Home Mortgages - Closing problems, any others had this?

I am in the middle of closing, well actually at the final part. I have the loan approved and took about 4 weeks for FHA inspector to okay the house (just paint on outside repainted and needed new doors). So loan is ready and FHA inspector paperwork is filed and set.

So its Friday and my agent calls and tells me Monday will be ready to sign and close. Just have to wait for the bank to approve it all. Well Monday comes they are still reviewing it and needs another 24-48 hours. Thursday comes and he says we should hear something Friday from the bank. Well Friday I get a call from the bank they say they need more paper work from me.

They need detailed paperwork on my bank statments, which they already have and a document to be signed by HR or a supervisor called a VOE (Verification of Employment). At this point am fed up with alot of waiting and "tomorrow it should be good" crap. I explain to the lady that they have everything ever asked from me to them that very day. Why wait at the last minute when I am about to close. The loan is final and approved so why are you guys still picking at it? They have my pay stubs and have talked to HR and know am employeed.

My agent on the other hand is shocked and doesn't have a damn clue as to whats going on. He says I will be signing paper work on Monday and doesn't know why I am being asked for this paper-work.

My question is this: Is this right, is somthing going on that I dont know or am unaware of? Is this even normal or common in closing to ask for more pointless documents? Can I do something about this or file complaints to help speed this proccess up?

Ive already invested money into the house and they keep pulling my leg around. I dont understand how a loan can be approved, house is FHA approved, termit inspectin is A+, has a 2 year certification on the roof and still the bank is asking for more documentation that is holding up the close. I also dont understand how a bank will let you work on a house that you dont own yet and than still haggle you around.

I am about to tear out the new doors and frames and take my A/C unit back off and damage the new paint job and just walk away from the whole deal.

Whew! Hang in there. On the positive side of things...this is normal. Not good but normal. The mortgage industry nowadays are tough. FHA loans are a big hit now and there are lots of brokers and Lenders that are just now getting FHA approved. Which means for lots of them, they may not know the procedures, rules, calculations, etc. In my eyes, just b/c they are approved to do FHA loans doesn't mean they know how to do them. I've talked to several people/companies that admit this. This doesn't mean this is the case for you.

There isn't a way for you to speed up the process other than provide for them what they request. Whomever is asking you for certain documents probably didn't know the underwriter (whom approves the loan) was going to ask for it or they did not put the file together accurately or didn't review and check to make sure everything was complete at time of submission.

Don't be surprised that once you have loan approval they may request more conditions (documents). It's a tough world out there nowadays for home loans. Hang in there. Most mortgage companies are trying to be very careful with all their loans and making sure everything they review and turn in is not fraud. There are so many delinquencies, defaults, foreclosures now that they need to make sure they are making the right decision. It's nothing personal...it's just the industry. You could be the perfect borrower w/the perfect file, perfect fico, etc. It will still take time.

FYI- the VOE should've been signed to be begin with by HR/Supervisor. If no one signed it, it means nothing. (Again...not your fault). Also the bank statement issue is probably just papertrail? If there are any large deposits or something funny and strange...out of the ordinary, they need to know where it came from.

The longer they take from the day of opening your loan to the approval date, the more conditions may be required. It always helps to have the most current documentation ie- pay stubs, bank statements, credit report, etc.

Just a question b/c I'm curious...the paint and the doors were "required"? Normally, any cosmetic issues are not required to be fixed.

Hope this helps some.

Hang in there. I know they are trying. Nowadays they just don't know what MORE the underwriter/lender is going to want in addition to the already set rules for FHA. I remember at times when I processed loans the underwriter would ask for more documentation and at the time when I submitted the loan I knew the documentation provided was good enough. I could point out the rules in the book but it didn't matter to the underwriter...they still wanted it. Sometimes, they'd agree w/me and then waive the condition they wanted but sometimes they refused as well.

You getting the run around is normal too. Whomever is telling you "...the next day" were probably told the same thing but it just didn't happen.

BTW: If they take more than 3 weeks to approve the loan...something is REALLY wrong! Actually, 2 weeks. It should only take them a week if not shorter. The reason it could take more than a day or two or more is b/c they are underwriting other loans as well. Sometimes it's the loans that HAVE to close tomorrow, sometimes it's first come first serve basis. It all depends on how s-m-r-t the company is. ;)

Uhh...sorry this is so long but I just wanted you to have as much scoop as I could possibly give ya.