Specific Loan Closing Instructions - Never seen these things required at Settlement Before

By
Real Estate Agent with Coldwell Banker Select Professionals

1.) Buyer must have minimum of 3.5% into the property at closing

2.) Final HUD to reflect an earnest money deposit of $1000.00

3.) Cash from borrower at closing not to exceed $12,617

4.) Borrower to Sign 2007 and 2008 tax returns

5.) Borrowing to provide most recent pay stubs at settlment.

6.) Borrower to sign hotel and transient Use Form

7.) Title to be clear of all liens and judgements

 

Okay some of these are fairly normal.  Obviously being an FHA loan I don't have a problem with #1,2, or 7.  All of those seem to be reasonable.  This is the first time I've seen a request for the buyer to bring pay stubs and sign taxes at settlement.  Did I miss something? 

Also I've never even heard of a hotel and transient Use form.  Someone enlighten me....?

Posted by

__________________________________________________________________________

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David E. Monsour, Realtor

Keller Williams Keystone Realty, Gettysburg, PA 17325

717-319-3408

David.Monsour@Gmail.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Tom Davis 02/06/2010 06:57 PM
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Rainmaker
370,723
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

It seems we are seeing more and more requests for items that are unusual where do these requirements come from?

Feb 04, 2010 03:07 PM #1
Rainmaker
249,732
David Monsour
Coldwell Banker Select Professionals - Gettysburg, PA
ABR - www.realty-insights.com

I mean if they approved the loan and it got through underwriting shouldn't they already have all of this... I don't get it.

Feb 04, 2010 03:10 PM #2
Rainer
190,056
Jon Budish
Resident Realty - Fort Collins, CO

I can't enlighten you. Do you know if a lawyer was involved in writing these terms? Just a guess.

Feb 04, 2010 03:10 PM #3
Rainer
87,398
Aaron Cullen
Brokers Inc. Residential Real estate - Folsom, CA
Folsom, El Dorado Hills & Sacramento Real Estate &

David, NOTHING suprises me any more.  How about the lender on FHA, after getting a clean report from the appraiser, thumbing through the home inspection and mandating repairs prior to funding...?

Feb 04, 2010 03:10 PM #4
Rainmaker
249,732
David Monsour
Coldwell Banker Select Professionals - Gettysburg, PA
ABR - www.realty-insights.com

I don't know who put the terms together.  Must be the lending institution.  It's not a big deal as my client has all of these things.  My problem is that it seems quite unnecessary. 

Aaron - How did the lender get the home inspection report?  They aren't normally privy to that information.

Feb 04, 2010 03:14 PM #5
Rainmaker
263,403
Franklin & Brentwood, TN Homes Mike Nastri - Rodney Kennedy
Keller Williams Realty - Franklin, TN
It matters to us as much as it matters to you.

Is their lender going to wait to approve them until they get to the closing table?

Feb 04, 2010 05:14 PM #6
Ambassador
536,856
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

And the walls come tumbling down, and the walls come tumbling tumbling dowwwwwnnnnn.

Dave what on earth is going here? I have heard of such foolishness, please see my earlier post, Tony Soprano is going to make a killing (no pun intended) this year with his shy business

Feb 05, 2010 10:56 AM #7
Rainmaker
249,732
David Monsour
Coldwell Banker Select Professionals - Gettysburg, PA
ABR - www.realty-insights.com

We were at the table today and what a mess.  This lending institution is based out of NY so they sent along all of this additional paperwork that is required for NY, that isn't required in PA.  I think I'm done with this particular company.  I've never had more issues with.  The Buyer managed to handle a lot of what was requested above before we got to the table. 

Feb 05, 2010 03:53 PM #8
Rainer
333,759
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Oh man David,

Isn't this a mess these days?  Gee well we are all hearing all kinds of things these days! 

I hate it when it gets down to the wire... so much for a smooth closing!

Thanks... well glad it turned out ok!

Tom Davis

Feb 05, 2010 07:28 PM #9
Anonymous
Anonymous
Kristen

Signing the tax returns at settlement is very common - especially if the customers have e-filed, the lender will want signatures on the efiled forms for their files.  Normally the bank has had the tax returns for a while and just makes the buyer formally sign the forms at settlement. We had to do this at our settlement on our new place.  The need for pay stubs has me stumped though!

Feb 17, 2010 11:57 AM #10
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Rainmaker
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David Monsour

ABR - www.realty-insights.com
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