can things still go wrong?

California

I had a hard time getting a mortgage due to owing the IRS taxes. I have been on a repayment plan. I finally got lender approval, the lender knows about the debt and the repayment plan. The title company put the IRS in second place after the mortgage lender because that is the law and said there should be no problem with that. Yesterday I and the seller signed all the papers and I gave the escrow company a certified check for the downpayment and closing costs. The loan is supposed to fund by early to mid next week. What are the chances of things going wrong at this point and the loan getting rejected?

Worried in Northern California

[MortgageGuru]

It is odd that a purchase transaction would fund more than 1 day after closing. What lender are you working with?

[HomeGuru]

Originally Posted by MortgageGuru

It is odd that a purchase transaction would fund more than 1 day after closing. What lender are you working with?

**A: what's so odd about that?
I have seen funding for up to 2 weeks after closing.

[nextwife]

IN WI we "table fund" purchase money mortgages. The closing and funding occur simultaneously.

[HomeGuru]

Originally Posted by nextwife

IN WI we "table fund" purchase money mortgages. The closing and funding occur simultaneously.

**A: this thread is not about PMM's but standard mortgage lender funding.

[nextwife]

HG, hate to disagree, but if this is not a purchase, then why is a seller being discussed?


[url]http://216.239.41.104/search?q=cache:NVcBi34cx2YJ:www.legis.state.wi.us/rsb/code/dfi-cu/dfi-cu054.pdf+purchase+money+mortgage+WI+definitions&hl=en[/url]

(6) “Purchase money loan” means any loan secured in whole
or in part by a first or subordinate lien on real estate and whose sole
purpose, as stated in the written loan application, is to purchase or
acquire the subject property)


We close refi's three day after signing, but any lender mortgaged purchase normally funds same day, usually seller walks out of closing with their proceeds checks.

Thanks for your feedback so far. This is a house purchase. What they told me is that a few days before actual closing I sign all the escrow and loan papers, which I did a couple days ago. That was the first time since my application that I signed any loan papers, and all conditions the lender had The same day they sent all the paperwork to the lender for a final review and funding which is supposed to take 2-4 days. I'm worried that they will change their mind in that final review, but maybe if they were going to deny me they would have done it before issuing the loan docs.

[MortgageGuru]

Again, what lender are you working with? There are only a handful of lenders nationwide that fund purchase money loans regularly in the way you have described.

I would bet you are not waiting on "funding", but most likely a clear to close. In that case EVERYTHING goes wrong. But I wouldnt worry. Usually, your loan will have stipulations which need to be taken care of in order for your clear to close. That would depend on what the underwritters want you to produce. Things like, W2's, paystubs, insurance binders. Your processor will let you know anything you need. I'm sure it will be fine. This is completely normal for any purchase. I dont think any lender would have pre-approved you unless they could get it done for you. Good luck in your new home!!