Nope, but somehow the lender has stated that he can still do it. Everything seems bass-ackwards on this loan and situation so shrug I don’t know what to think.
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Welp. How bout we jingle and pray in the meantime.
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That I appreciate!
Looks like it’s hit the lender but we don’t have it in hand. How they can do the loan commitment (which is done) when no one seems to know what the number is is slightly beyond me (don’t we have to…you know…negotiate after that?)
Such a weird experience!
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That’s good the lender has it! IME the appraised value is non negotiable; it can be appealed but that requires a whole new appraisal. Lenders may vary (my usual disclaimer lol)
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Oh sorry - I meant that we have an appraisal rider so we have a step to negotiate with the sellers. One would think that would come before the loan commitment.
Oh I see. Your sales contract has some sort of appraisal contingency?
I think the loan commitment is more or less the lender verifying they can make the loan. That’s only important to the seller as confirmation that you can secure funding. The sales price could still be negotiated I imagine based on appraised value (particularly if appraisal comes back lower than originally agreed on sales price). What I see most often is sales price will remain the same as original contract/offer if appraisal meets or exceeds sales price.
We had another letter before this lc letter that came after underwriting but before appraisal. And when I read online it suggests that lc usually comes after appraisal except in rare instances, because the bank is saying they will fund on this particular property. But again, Mr Google hasn’t been normal here 
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At my place, the letters would be a pre approval (given before a property address is available), a conditional approval (after a prop address and a sales contract is available) and then lender commitment. Other lenders may vary.
Truth be told underwriting will touch your loan file multiple times prior to closing. That’s gonna be true across the board though your PoC at the lender may call UW a variety of other names.
I hope it will all work out for you.
Yes, we skipped pre-approval because we had to switch lenders (got it for the first lender, I’m sure they rushed it through for the second), got the conditional approval over a month ago, and the commitment today. Mr Google indicated that usually the appraisal was a condition that the conditional approval needed to have satisfied before the loan commitment could be issued.
That leaves the option that either the appraisal came in with enough value that the bank is satisfied but they haven’t communicated what that value is to us yet (a fine yet kind of annoying possibility) or that the appraisal value wasn’t necessary for the loan commitment, because we’ve been “all but appraisal” for a month. According to our lender, we’ve been “through” the hard part of the underwriting process for about 3 weeks, since we had all of our ducks in a row from the first lender before they decided they couldn’t lend on that type of property. They asked for only one other document.
I am aware that they will review our loan again before closing, but I’m fairly sure it’s been sitting in a virtual file somewhere as “pending appraisal” for the last 3 painful weeks!
It’s possible that the lender hasn’t gotten the appraisal over to you yet. If I’m recalling my yearly compliance training correctly the law is “appraisal copy to be given to consumer promptly on completion at least three days before settlement”. My employer takes three business days after we approve the appraisal.
I’ll keep jingling for you!
I realize that today’s lending is different than when I was in banking back when currency was real paper rather than an electronic item, but I find it questionable for one lender to rely upon paperwork processed by other lender as there is nothing to verify just what that processor did or accepted as fact. To me it appears the current lender is just ramming this through to package with others to sell off.
Back in the old days, such a loan would have been simple…we had a loan approval board which met weekly to review such applications. Rarely did my bank package any loan to be sold off, the loans were kept in-house
He didn’t rely on their paperwork. It’s just that we didn’t have to take the time to collect all the documents and upload them one at a time as the underwriter trickled in requests because the other underwriter, from the other lender, had asked for most of the same things. So when we started with the new lender, we uploaded everything that the previous underwriter had asked for since we were almost the whole way through the underwriting process with lender # 1.
But yes, most lenders nowadays do sell the loans. It’s actually rare that anyone keeps them.
Lenders vary. Our process after approval includes a doc review by UW and then a clear to close review. The doc review can be done in stages. So if docs ABC are needed and we have A and B we submit for doc review and UW pends it for doc C (basically saying A and B look good let us know when you get C). Sounds like that’s what you have. UW has reviewed the docs you had already. Then for clear to close UW looks at everything again plus any additional docs that might have changed (for example if your requested loan amount changed bc you and seller agreed on a different price post appraisal).
Checked in with the lender this morning and while “they” have the appraisal, it’s not in their system yet so our LC letter is still pending appraisal value. Apparently we were waiting on the appraisal to do the LC letter since 4 appraisers failed to turn in a report.
So we still don’t have a value, but I’m assured that “it’s coming”. Color me now sour on the whole experience and I’ll believe that when I see it.
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Appraisal is in! Highest and best use residential (which…means that the first 4 appraisers AND the first lender could have totally probably done this but I’m so so over it), and appraises at/slightly above value.
Holy crap this thing might actually close.
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I’m so happy to read this! I wonder who will close first- you or me? My money is on you!
Fun fact: I learned last week that appraisals expire. We are dangerously close to the 120 day expiration mark for our situation.
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Whoop whoop!
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Oh no! I’m so sorry. Did you also have trouble getting yours to appraise? I know you’ve got the whole bankruptcy court mess to clear, but I wasn’t sure if you ran into the same appraisal mess.
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No, no issues with our appraisal. The hilarious part is they made us rush to get it done “because of the court.” Ha!
But anyway, congrats!!!
