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SC applies of a home equity loan refinance. Wants to replace a current 70,000 loan with a 115,000 loan. Underwriting says no-can-do for various credit reasons. They will approve $100,000 MAX and that conditioned on a certain percentage of the home value (no 100% home value loans for SC).
So, I call SC to explain the counter-offer.
SC says it's not enough; it's not worth it. He's going to cancel. Maybe. He'll let me know.
Few days later SC let's me know he supposes he will accept the $100,000. So, I start going through the details, telling him about the appraisal costs and...
WHAT!!!???! An appraisal? Why do we have to do an appraisal? We already have a home loan, he's just adding money, and the tax value shows the value is there.
Well, ONE there does not exist a home loan that you can "just add money" to. It's called a refinance. Yes, that means going through the process again. Be glad we're not a first mortgage service; home equity loans are a LOT easier, cheaper, and quicker. TWO, your current home equity loan started over two years ago and appraisals that old are no good. THREE, if we COULD make an exception and use that old appraisal, it would be too low for the underwriting % of the value condition, being a good thirty thousand less than the current tax value you are wanting us to use. THREE, tax assessment values are, at best, rough estimates of the market value on your house and are never used for $100,000 loans, especially not when the underwriter has a condition in place to where, if the market value comes in much lower than the tax value, we won't be able to do the $100,000 counter offer.
So, SC decides it's not worth it... maybe.
A few days later, he calls back, and FINE he'll do the appraisal, but he needs the money by next week.
NO.
Seriously, this is just in way way shape or form possible.
1st, you are calling in the middle of Spring in the middle of a promotion in the middle of a market increase in home sales in the area. We are slammed. The appraiser services are SLAMMED. Again $100,000 loan does not equate to desk top appraisal. Someone is coming to visit the home AND look inside of it. That means setting up an appointment with you. Then AFTER they inspect the home, they will find comparable sales and put together the appraisal report to send to me. That means there will be a time delay before the appraisal process is concluded.
2nd, if the appraisal comes back high enough and we have everything else gathered in the meanwhile that is needed for the loan, we have to prepare the paperwork and set up a closing appointment.
3rd, After you sign documents, there is a regulated 3 business day wait while you get a chance to change your mind. THEN the funds can be available (assuming you don't cancel again).
Cue big frustrated fit and another cancellation on the application. If he can't get the funds right away, this isn't worth it. He doesn't say maybe this time, but I put it int the "pending" pile anyway.
Sure enough, two weeks later (today), SC calls back.
Talks to someone else, like they won't read my notes or refer him right back to me...
Why haven't we gotten his application ready to go!??! SC wonders. ...well... because you said you were canceling, that's why. So, no, we did not go ahead and do that appraisal anyway (We let the appraisal be a closing cost and don't charge for it at all if the customer cancels the loan. So NO we're not going to pay for that appraisal if the customer has said he's not getting the loan. Plus, remember that whole, appraiser will need to set up an appointment with YOU to view the inside of your home part?)
Well... well... well... he's going to go ahead and get the loan. But he's in a RUSH!
Okay, they'll let me know to call him so I can get the appraisal ordered.
I give him a call not 5 minutes after they notify me.
He doesn't answer.
I decide to go ahead and put in the appraisal request. Give them a call to put him at the top of their queue. Guess what? Our main appraisal service is now booked through the end of the month and our back-up is twice as expensive (and usually not faster, only being more expensive they have less of a rush going on so will probably shave a few days off the wait time). So, how much is that rush worth it to him now?
He hasn't called me back yet. I went ahead and put in for the cheaper appraisal that I originally quoted him for, and THEY called and left a message for him also to schedule an appointment to see the house.
I'm betting he'll be calling me next week wondering why it isn't done yet...
Also bet the appraisal comes in too low and I won't be able to get the full $100,000. Wonder if he'll cancel outright then or if we'll play the "Cancel it!/Why isn't it done yet?" game for another round.
So, I call SC to explain the counter-offer.
SC says it's not enough; it's not worth it. He's going to cancel. Maybe. He'll let me know.
Few days later SC let's me know he supposes he will accept the $100,000. So, I start going through the details, telling him about the appraisal costs and...
WHAT!!!???! An appraisal? Why do we have to do an appraisal? We already have a home loan, he's just adding money, and the tax value shows the value is there.
Well, ONE there does not exist a home loan that you can "just add money" to. It's called a refinance. Yes, that means going through the process again. Be glad we're not a first mortgage service; home equity loans are a LOT easier, cheaper, and quicker. TWO, your current home equity loan started over two years ago and appraisals that old are no good. THREE, if we COULD make an exception and use that old appraisal, it would be too low for the underwriting % of the value condition, being a good thirty thousand less than the current tax value you are wanting us to use. THREE, tax assessment values are, at best, rough estimates of the market value on your house and are never used for $100,000 loans, especially not when the underwriter has a condition in place to where, if the market value comes in much lower than the tax value, we won't be able to do the $100,000 counter offer.
So, SC decides it's not worth it... maybe.
A few days later, he calls back, and FINE he'll do the appraisal, but he needs the money by next week.
NO.
Seriously, this is just in way way shape or form possible.
1st, you are calling in the middle of Spring in the middle of a promotion in the middle of a market increase in home sales in the area. We are slammed. The appraiser services are SLAMMED. Again $100,000 loan does not equate to desk top appraisal. Someone is coming to visit the home AND look inside of it. That means setting up an appointment with you. Then AFTER they inspect the home, they will find comparable sales and put together the appraisal report to send to me. That means there will be a time delay before the appraisal process is concluded.
2nd, if the appraisal comes back high enough and we have everything else gathered in the meanwhile that is needed for the loan, we have to prepare the paperwork and set up a closing appointment.
3rd, After you sign documents, there is a regulated 3 business day wait while you get a chance to change your mind. THEN the funds can be available (assuming you don't cancel again).
Cue big frustrated fit and another cancellation on the application. If he can't get the funds right away, this isn't worth it. He doesn't say maybe this time, but I put it int the "pending" pile anyway.
Sure enough, two weeks later (today), SC calls back.
Talks to someone else, like they won't read my notes or refer him right back to me...
Why haven't we gotten his application ready to go!??! SC wonders. ...well... because you said you were canceling, that's why. So, no, we did not go ahead and do that appraisal anyway (We let the appraisal be a closing cost and don't charge for it at all if the customer cancels the loan. So NO we're not going to pay for that appraisal if the customer has said he's not getting the loan. Plus, remember that whole, appraiser will need to set up an appointment with YOU to view the inside of your home part?)
Well... well... well... he's going to go ahead and get the loan. But he's in a RUSH!
Okay, they'll let me know to call him so I can get the appraisal ordered.
I give him a call not 5 minutes after they notify me.
He doesn't answer.
I decide to go ahead and put in the appraisal request. Give them a call to put him at the top of their queue. Guess what? Our main appraisal service is now booked through the end of the month and our back-up is twice as expensive (and usually not faster, only being more expensive they have less of a rush going on so will probably shave a few days off the wait time). So, how much is that rush worth it to him now?
He hasn't called me back yet. I went ahead and put in for the cheaper appraisal that I originally quoted him for, and THEY called and left a message for him also to schedule an appointment to see the house.
I'm betting he'll be calling me next week wondering why it isn't done yet...
Also bet the appraisal comes in too low and I won't be able to get the full $100,000. Wonder if he'll cancel outright then or if we'll play the "Cancel it!/Why isn't it done yet?" game for another round.
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