As indicated in the last post, this is a period where it pays to be relaxed and let your agent and loan officer do what they do best. Our loan was scheduled to close this week, but we had to bump it out until next week due to some processing and paperwork errors.
I’m told we were delayed for underwriting because of two issues:
1) Our IRS 4056-T form was rejected due to an illegible date and needed to be re-done.
2) The finalized loan amount was generated based on the appraised value, not the lower cost of construction value. Fixing that triggered some sort of federally mandated waiting period.
Tips to help you avoid problems:
Examine your GFE very carefully. If you see any errors, insist that they are corrected early. Don’t accept that the document will be fixed before closing and don’t sign anything that is inaccurate. If your loan amount is not exactly what you expected, call your broker. Don’t make any assumptions.
Sign any form going to the IRS (most notably the 4056-T transcript request) carefully and exactly per the instructions. Names, dates, and, signatures must be legible and in the correct location (above the line, not next to the label) or the IRS will most likely reject your form.
Verify that you are being handled as a high priority. Your loan is on a deadline so ask to be sure it is handled with a higher priority than refinances.Photo credit: fsse8info