Hello. I’m going to keep this as short as I can. Also, I’m on mobile, so formatting might be funky.I’m buying a condo in a flood zone in CA, so hazard and flood insurance are needed. My original closing date was 4/18, but from what my lender says, the HOA didn’t provide paperwork for the flood insurance so closing was delayed. HOA didn’t give paperwork over until 4/23. On 4/24, my lender tells me they have questions for the HOA and are waiting for responses.The question they have is why is the hazard policy limit $44MM but the flood policy limit $30MM and my lender won’t move forward without a valid explanation. The HOA says they don’t know, but from HOA paperwork we received, they only started being responsible for the flood insurance in 2021, so not long enough to “lose” notes or “forget” why. Lender reached out to insurance, but they were told they can only release that information to the HOA or to a current resident, the seller. Neither the HOA nor the seller has reached out apparently.My agent is saying we need to go to a new lender and is being insistent about it, but wouldn’t the new lender just be willing to take on the risk of this loan? It’s not like they’re going to make the discrepancy go away. Is the limit difference really this important or am I getting too anxious about this? Is it worth it to go to a different time lender? I like my lender.I’m a first time buyer, and even though the condo checks my requirements, it’s not my dream home so I’d like some help deciding if I should walk away or not.
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