I have a sale pending. on the buyers side, its a lovely home that has been COMPLETELY renovated, first class upgrades throughout. Granite counters, stainless appliances, wood floors, new bathroom fixtures, new air conditioners, new 30yr roof, this is an outstanding redo.
Just under 2500 sq ft, on .48 acre, double decks, massive oak trees, sprinkler systems all around, side entry garage in a very very desirable South Austin neighborhood. Originally built in 1974. The appraisal came back at $2,000 over the negotiated sales price. Yes, by an independent appraiser the bank choose.
So, its all good.. .right? ALMOST... the underwriter in another city has decided we don't have enough current comparables. We have the normal 3 within 6 months, 1.5miles radius. Within 10yrs of building, 100 Sqft of build... etc..etc. The underwriter in another city has deemed we NEED comparables within 90 days.. 90 days in the worse selling months of any year?
Oh, I forgot to mention the buyers are A++ credit score, with 35% down payment.
I mention the underwriter in another city because as many of you have heard over and over from those of us here in Austin Texas, our market is not falling, it is not crashing or collapsing, according to many news sources, ie: the Wall Street Journal, Forbes Magazine, MSNBC News and Austin Business Journal our market is among one of the strongest in the nation.
The mortgage officer has offered us options, perhaps we can put more money down? Perhaps we can get a second independent appraisal, oh yes the buyers would pay for that one too.
Now, tomorrow I will know more, this bombshell was dropped on us after 4:00PM last Friday. Monday, we are speaking to the bank manager. So you all in mortgages, please explain to me what and why this has happened to us? I know the market is a scarey place for some .. and I do NOT want my buyers to be over paying for anything, but this is a good deal... I hate to see my buyers lose this house because of market conditions in other places.
So, I think any suggestions would be appreciated. Any keywords I should use tomorrow? and pertinent facts I need to have onhand?
Gail....since no one on here was kind enough to leave you a comment....here comes BLRGUY to the rescue....
I HATE UNDERWRITERS!They all pretty much stink and can probably be found living in the bottom of a sewer someplace....so,if one ever surfaces....here is what you hit them with:
HI Ricki... thanks for stopping in... the issue was resolved, the seller submitted all the new construction, renovation receipts, which totaled over $90,000. and the underwriter was then happy .. or at least happy enough to approve the loan. :)
I just am amazed the power of an underwriter to deny a loan to credit worthy people, since the appraiser was chosen by the bank... do they not trust their own decisions? kinda scarey huh?