Intro: My purpose here is not so much of a rant but just to put some of the whacky recent experiences I've been involved with in helping my clients navigate their way to successful closings on purchases involving loans. My underlying motivation is that others will write their own experiences and while I understand it's a long shot - perhaps some common sense will return to the lending industry.
OK, Here's my third story. Here's another VA loan situation. One of my VA eligible clients decides that he wants to purchase a home out on Lake Whatcom. He has his own lender that has pre-approved him, the property/home and the transaction. About 10 days before closing - after spending money on the inspection and the appraisal we get an email from the lender saying VA will not lend on the property because the water source is Lake Whatcom. Of course this fact was known by all parties from the beginning and OK'd but now that doesn't matter and it's a problem. It's a problem even though Lake Whatcom is the water source for the entire City of Bellingham and dozens of $1M+ homes around the lake. The VA said that they would do the loan if the home was on a well rather than the lake and we could query the decision if we were so inclined - so we did.
The local well drilling company that did drill the well on an adjacent property came out and looked at the site and put it in writing that the water quality out of the lake is far superior to the water that the will be able to get out of the ground at this location. I got written documentation, water rights and letters of approval from both the Whatcom County Health Dept and the WA State Dept of Ecology indicating that Lake Whatcom was a valid and safe water source. Even with all the documentation to hand - the VA declined to loan on the property. That is whacked.
We found another way to get the job done but we couldn't go VA and it did cost my client 1,000's of extra dollars - that's a double wack.
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