Termite Report Holding Up Closing???

[kuklaki]

I am hoping a mortgage person on the boards can give me some insight. DH and I are set to close on our 1st condo on 9/28. Everything was going along well. We got the inspection, appraisal, and title info all on time.

We got the termite report on Monday and the sellers are going to replace a door that is a little iffy on 9/26. Here's the issue. Our lender is telling us that they can't draw up the documents until the Termite Report clmes back clear (meaning the iffy door is replaced). Our Agent is telling us this is crazy.... there shouldn't be a hold up in getting the docs to us just because of the Termite report. This report would only hold up the actual funding.

So here's our problem. If the report gets to the Lender on 9/27, we will most likley get the docs to escrow on 9/28, have to schedule an appt to sign them, then send them back to the lender and then get funded. We are hoping to get this done by the last day of the month to avoid the prepaid interest.

My question is, is this typical of the lender? I mean, should we be worried that this is the 1st time we have heard about this? (although it may be too late anyhow). Also, is this typical in the industry? Having to wait until the Termite Report is in the Lender's hands prior to even drawing docs?

We have had a stress free experience so far, but now we are getting worried.

[ee_chick]

I don't think that's required/normal. We're selling our house right now. We had the termite work done on the same day that the buyer received her loan docs. The initial report was already in to the escrow office, but the work had not been completed yet.

[Hokulea]

I don't know, and I can't ask my FH right now because he's in Houston without power, but it could POSSIBLY have something to do wtih the lender or type of mortgage. Some are much more strict than others. That is something you would need to ask your loan officer. Generally, what he told you doesn't sound normal, but it may be if he chose a more strict loan to get you a better rate or whatever.

[Lil' Peach]

It's actually the same for us... we are set to close on our house Oct. 28th and our lender must have documentation that the termite report has cleared. The inspector found very minimal evidence that there are active termites in a very, very small section of the basement. (in one spot on one piece of wood) Still, the seller paid to have it taken of and our lender MUST receive a copy stating the problem has been taken care of before closing.

[kuklaki]

Thanks girls for all of your responses.

Crazy day today, let's just say I didn't get any work done at work! First thing this morning I called our loan officer (not the processor) to see what was up with our docs. I left him a message @ about 8 am. Then I hear from our agent at about 930am telling me she has left messages with the loan officer AND the processor. She told me she chewed them a bit and all of a sudden we get phone calls!!

Our processor tells me that she is so-o sorry for this misunderstanding. Turns out she was not in her office on FRIDAY because she apparently passed out at work on THURSDAY. Awww...and my dog ate my homework.

In any event, escrow received our loan docs this afternoon at about 230 and DH and I were up there at 4pm to sign everything. Funny how the docs appear so quick after a bit of ass chewing :D :D :D I swear, we are so lucky we have the agent we do. She must have called me 5 times today to give me status updates. Apparently the lender is allowing us to show proof that the work was done when the docs are Fed-Exed tomorrow (lucky us :rolleyes: ). So it appears that we will be closing on time.....provided nothing else goes wrong.

Bright side? We are getting our deposit back...whoo-hoo.