Yesterday I received the following question from K.S. who
lives in Antelope, California. I want you to know I get
this question over and over. It is one of my pet peeves
because there is absolutely no reason for it to be such a
frustrating reality to so many people applying for a
mortgage. Here's the question:
"how long do i have to wait for underwriting???? i have
been waiting week after week. he said completion review
would be complete the 19th after last week he said 48 hrs
.. last message he sent said he would know more on the 19th
...gr"
Answer:
The amount of time in underwriting depends on the lender,
the type of loan, the issues that need to be resolved, and
how saturated the market is. It can take 1 (one) week or up
to 6 (six) weeks (worse case).
I don't know what the issues are on your loan or what type
of loan you are qualifying for. However, your loan officer
does!
Sometimes the problem of time is an issue of "when it was
REALLY submitted" to the underwriters or what issues still
need to be resolved. Your loan officer needs to be totally
up front with you. If you don't think he is, ask to speak
with his broker/manager.
I'm serious about this issue. You need FACTS! Ask exactly
when it was submitted. If it has been more than two weeks,
you have a right to know exactly why. Ask for
documentation. No kidding. It is your loan and you are
paying them a lot of money to broker it. You should demand,
without being arrogant, real and true information.
Good Luck, Connie
I found out during the conversation with K.S. that the
Company she is doing business with is one of , if not the
largest Lender in the US. That is too Sad. I also found out
she is applying for an FHA loan and in all fairness these
loans do take a little longer to close.
Like I said, this is one of my pet peeves so let me tell
you why. I've been in the business for a long time and
pretty much seen it all. I know that sometimes an
incomplete package is submitted to underwriters. I know
that there can be issues with appraisals or titles that can
take time to correct or clear up. Sometimes a simple VOE
will take longer than it should. Sometimes the borrower may
be a little weak in some areas and the underwriter may ask
for more or unusual documentation, they have the authority
to do that.
I also know that sometime, more often than we like, the
package just doesn't qualify under that lenders guidelines
so the loan officer starts sending it out to numerous other
lenders while he prays, and I mean literally prays that one
of these lenders will approve it out of the kindness of
their heart or that perhaps that their guidelines are not
as tight. Well, we have all been there and every now and
then it works, ... but at this point it is usually a lost
cause, only that, ...we just can't let it go because we are
heart broken for the borrower and we find ourselves in a
state of denial.
If you are in the business you know that all these
scenarios are reality and do take time. OK, so here is the
issue I have with all this. This is why it angers me so:
While all this is going on the borrower is left in the dark.
Most borrowers don't understand all the steps we go through
or the documentation process. But it is their loan be it a
good one or not. They are paying a lot of money for this
process. We owe it to them to keep them informed about any
problems or issues that arise. They are part of the
process. They have a right to know and if they don't
understand then we must explain it so they do. Our
avoidance of the issue and reluctance to inform the
borrower puts them through a tremendous amount of stress
and anxiety.
Borrowers, people, you and I, ... all expect to be treated
with dignity and respect. We expect honesty from the people
we do business with and we expect the people we are doing
business with to have integrity and compassion. Pretty
simple, huh? So why don't people get it right?
Borrowers have a right to know and the loan officer or
company has an obligation to keep them informed.
Alright, I'm Done. I do hope I don't get this question
again for at least a week!
----------------------------------------------------
Connie Sanders owns http://www.mortgageunderwriters.com and
receives questions everyday from borrowers and industry
professionals. The ones with issues she posts on her blog:
http://mortgageguidelines.blogspot.com
Vitist today, your
comments are welcome.
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