Refinance taking too long?

Question

Hi there. I was wondering if I could get some advice.  I initially applied for a regular conventional 30 year fixed mortgage from a conventional 30 year fixed mortgage of 200,000 3 months ago today.  This was a simple refinance, no complicating factors.  I faxed all my documents over within the first week or so, and was told that they had everything they needed.  The processes has always been slow, with their electronic disclosures not working well, and they frequently tell me they need another document, or that I need to resend more newer paystubs.  I disclosed that I was missing my boyfriends W2 from 2015 from the beginning, and 2 months ago they stated they needed a 4506T form filled out at that time, even though I already thought they had it figured out. They have re-requested the payoff summary multiple times from my current mortgage company, and told me not to pay my Sept or my Oct payments (which I paid anyway, thank goodness).  Most recently, after sending me the final closing disclosures, they said they found an error, and the underwriter was requesting separate applications since we are not married. We have since filled these out, and now they apparently need the W2s from 2015, which I thought that they obtained 3 months ago.  They say they are paying the fees associated with my rate lock, but I am worried. Is this loan ever going to close? Do I have any options to move it along faster?  I am worried that I can't get a good rate with anyone else since our credit scores will be much lower because of the hard credit pull from 3 months ago.  Any advice would be appreciated. Thank you.

Salley Smith · Answer

You are right! I see here now that it says 1040 in tiny print on the form we signed, which is not good.  He hadn't answered as to why the 4506T form hadn't worked, but did say they are going to try to do an income verification instead. I can try your advice. Would you be worried about my credit score dropping? It was 719 in Dec, we closed the new home loan in Feb, no late payments or new debt, but down to 697 in July. I am worried I might not qualify for a better/ same rate with a new company, if the score has dropped from the hard pull in July.  Thanks again.

Salley Smith · Answer

Ok, I stayed with the company, and today I am supposed to be signing the final documents.  My question is, I never signed a new closing disclosure (I haven't signed one since end of Sept, and some of the numbers are different now, although the rate and payment and loan amount are still the same).  Should I be worried about this? They are actually still figuring out the final numbers, because they didn't realize I had already paid my taxes.

Chris Mason · Answer

Got it. If you're at 697, the credit inquiry shouldn't materially impact you. 680-699 is the interest rate pricing bracket you are in, and credit inquiries don't really hurt you nearly as much as many make it out to be. It certainly shouldn't drop you from 697 to <680. If your score is now lower than 680, there are other things going on.

Salley Smith · Answer

You were very good, thank you!

Just a rate refinance, refinancing a 200,000 30 yr fixed conventional at 4.25 to a 200,000 30 yr fixed conventional at 3.5 percent with no mortgage insurance (since we have done renovations and have a higher appraised value).  No cash in/ out.

Chris Mason · Answer

But it means that I'm good at picking up the messes left by other lenders (not licensed in your state, sorry). :P

Is this a rate/term refinance where the rate is paramount, or a cash out where access to new capital is paramount?

Chris Mason · Answer

• Pick the appraisal up. 
• Look at the appraiser's name and phone number. 
• Call the appraiser. 
• Ask who her or his favorite lender is that she or he is on the appraisal board of, a specific person not a company. 
• Call that person. 
• Touch base to ensure you're a good personality fit.
• Ask the proposed new lender what she or he needs to fix the W2 issue -- 4506-T for W2 is the correct answer (I've got $5 here that says ding-a-ling lender just ordered another 4506-T for 1040s because 1040 is what auto-populates, and thinking is hard for some).
• Search your email outbox for your old lender's email address. 
• Forward all the emails with attachments that you sent to the old lender, to the new lender. Also email the new lender a copy of the appraisal report. 
• Close.