Oh, the dreaded statement I shudder to hear from a loan officer!
If you've been given this notice, immediately ask these 4 questions;
1-What specifically is the problem?
This is important because the problem could be minor (Need a document from the buyer) or major (Loan was denied and they are looking at other loan options). Knowing what the problem is helps you determine A-how serious it is and B-if it will delay your closing date. If you don’t understand, tell the loan officer! This is not the time to soft-step the issue. You need to know what’s going on so you can explain it to others.
2-What exactly is being done to solve the problem?
Believe it or not, if you have a newer loan officer, they very well might not be doing anything because they don’t know what to do! Ask for specifics including how much time is needed to resolve the issue?
3-When do you anticipate getting loan approval?
This will help both agents determine a new due date for the loan approval. Don’t waste time writing up extensions until you know when the lender will be able to perform. I also like to hear that the lender is “rushing” the process for a faster approval. Finally, don’t accept a wishy washy answer from the lender-Make the lender commit to a day. Hey, everybody needs a goal, right?
4-Will this cause a delay in our closing date?
Some lenders don't pay attention to the bottom line (ie-We have a contracted closing date that buyers and sellers have scheduled around!). Buyers and sellers need to know right away if we cannot close on time. Do not accept an, “I don’t know” answer. The lender should be able to calculate out all the tasks the bank needs to perform from their end to get it to close (loan approval, docs to title, funder review, funding, etc.).
By letting the other team member know you are concerned, they then understand the urgency of the situation and hopefully will move quickly towards resolving the problem.
You will be able to supply a clear, professional response to the seller/listing agent when you have to deliver the bad news of a delayed loan approval.