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 borrows 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
VA Mortgage Occupancy Requirements
7 months ago
14 comments:
I did that once. A loan I had was turned down by two lenders and I felt so bad I kept sending it to other lenders. I couldn't tell the lady. She already had her stuff in boxes.
It is one year later since this post, but I am one of those Borrowers you talk about that is asking: how long do I have to wait for underwriting????
My financial situation is good, but all we are waiting for is the appraisal. and we're waiting, and waiting, and waiting. and also, we keep trying to contact the lender and it feels our package has fell into a deep dark black hold because no one responds to our emails or phone calls. it is the MOST bizarre thing. if I ran my business the way they treat their clients, my business would not exist.
Is there anyone trying to make changes in the process to at least keep the Borrowers posted as to what is going on with the process??? Or do the lenders just not care at all??
We have been in uderwriting for 6 weeks. Today is Thursday, so it looks like it will go into 7 weeks. We are going 100% Rural Development. My LO keeps telling me only that the underwriters are so overwhelmed with work that they just can't keep up. In the meantime, the only reason we are getting a new home is because ours got damaged in Hurricanes Gustav and Ike. We have been waiting 7 months. We are living with water leaks everytime it rains. Our LO has supposedly told the underwriter this but to no avail. We are just at the mercy of the underwriter who is too busy to get to approve our loan. This is the MOST frustrating thing I have ever been through. Weeks just go by with no movement. We have great creidt. Great jobs and have given the LO an abundance of documentation. He keeps telling us that nothing is wrong, but I am starting to get worried. Everyone I talk to is telling me this is ridiculous! I certainly agree. It sounds to me that the underwriting company needs to hire more people. Question--if they are so darn busy with new loans, why do I still only hear about doom and gloom on the news? Sounds to me the economy has really picked up when it takes almost 7 weeks in underwriting.
If you are getting a Guarantee rural Development Loan it could be that the lender is waiting for funding from USDA. The allocation of these funds are by Quarter and the Presidents Recovery Plan maybe causing some delays. If this is a Guarantee Loan, call your closest Area Office and talk to someone in the Guarantee Rural Housing Department. They will give you the honest info. AND, Make your loan officer call the lender to find out more information. This is your loan!
I wrote on April 16th about being in underwriting for 6 weeks. Well, the underwriter finally sent it to Rural Development and now it's been sitting there for 5 days. My lender told me it would only take 48 hours. I don't know what the hold up is this time. My lender seems to know nothing and just tells me the same thing each day, that he should get it back tomorrow and we can finally set a closing date. I've been hearing that everyday. Tomorrow never seems to come. This whole process has been absurd!! I guess I have to wait for RD for 6 weeks now? The kicker is that after it is approved in RD, it goes back to the same underwriter that took 6 weeks to look over it. She has to give the clear to close. Wonder how long that will take?
Where are you from Anonymous? I submitted my application and it just went to RD.
I am from Louisiana. I just called the rural development here in my town to find out why this was taking so long and they would not give me any information. They told me to have my lender call them since the lender was their customer. I wanted them to tell me where we were at in line since it's been 6 days in RD. My lender tells me that he calls them everyday and that they don't tell him anything. This is just ridiculous!! When I spoke to the lady that answered the phone at RD she said that it usually takes 48 hours but at the end of the month everyone is trying to close their loans and it might take longer. 6 days is a lot longer than 48 hours. I feel that I am being totally left in the dark about what is going on with this. Any suggestions?
I'm going through the exact same situation. Except I ran an FHA loan in parallel which got approved before the close date, but I didn't have the FHA listed on the contract. The USDA loan has been taking forever to go through the underwriting process and the close date has come and gone. I decided not to close with the FHA because I didn't want to come up with the down payment and my interest rate would be almost a percent higher than the USDA! I figured I wouldn't be liable since it wasn't listed on the contract. The seller was extremely frustated and said she is going to sue all parties involved because she lost the house she was set to close on in another state and had a moving company already move all her things. I want to buy the house, but it has to be with a loan I can afford and feel comfortable with. I just wish the underwriter would sign off on the thing already. He's had it for 2 weeks. It's been submitted to RD, but again they won't provide any type of timeline.
I consulted an attorney and they keep on informing to get the USDA approved asap. The thing is I've been emailing everyday been it really doesn't matter because it isnt' in my hands.
I think my situation is similar. I am in Louisiana, too. We had trouble getting approved for a mortgage at the first of the year, and finally were supposed to be approved for a usda loan to get a new doublewide and a couple acres of land. We have turned everything in that they have asked us to. We call once a week to check on it.
As of three weeks ago this coming Monday, it went into underwriting, and the loan officer said they should get everything back in a couple days. We got the same news the next week when we called. This past week when we called, they said the underwriter wanted appraisals of similar properties in the area and that they should hear back the first of this coming week.
We are so frustrated with it because we have to be out of here by July and have 4 small children. It is so hard to find a rental in our town and we have already had to ask my mom if we can stay with her in her 2 bedroom trailer in case we can't move by the time we have to be out of this rental.
I thought I would feel better knowing that other people are going through the same thing and that maybe it really does just take that long to close, but it isn't helping much.
I am just so worried that it is going to fall through and the underwriter will turn us down, then we will be back at square one, but won't have any time to try with another company or time to find a decent rental.
We had applied back on March 5. I keep saying we, but it is all in my husband's name because I have no income and no credit so they left me out of it. His credit scores are between 616 and 660, income is 49000 a year, and the mortgage amount is for 118 thousand...maybe this info would help someone to give me an idea if maybe it sounds like the scenario that anonymous posted and that was talked about in the article where we aren't really approved and they are just not wanting to tell us...
I have applied, already gone thru USDA, have my approval and clear to close. Ging on two weeks now of the mortgage company telling me "we promise you will close tomorrow" Well, tomorrow has yet to come and the title company said they have not been sent anything to close. I am at a loss. The seller is cancelling the overdated purchase aggreement next week and I have no rental home anymore. I am in a hotel room.......VERY FRUSTRATING
We are still waiting...did find out that the reason it's taking so long is because the underwriter needs more comparables. They only found one within a 10 mile radius. I got a newspaper and got online tonight and found 10 listings in a 10 mile radius that are similar in size and price. I know there are many more factors in an appraisal but if they can't find anything else, why can't they go ahead and use something similar? The ones I found that were most like ours are actually priced higher.
Anyone else having this issue with the underwriter waiting on more comps?
My loan package was just submitted to underwriting. We've submitted proof of income, the appraisal is done, and now we just wait I guess. It's a conventional loan through JP Morgan Chase with 20% down and our front-end ratio is only 21%. But, you guys are freaking me out. The house we are buying is a foreclosure home and there's a $100 per day penalty if we don't close by June 26th. I'm also worried because my loan officer is on vacation next week AND my realtor is on vacation next week and the week after. They say they have access to email, but whatever. Who's going to let me know when the underwriter wants more documentation? It's going to be a fun month!!
Just an update...we finally closed yesterday!! They called us last week and said they were ready...so we did our first closing, for the interim loan.
Supposedly, after all the delays, the lender had ended up running out of money in the interim loans department, so we were told that the company we are buying the manufactured home from would have to find us another lender. After the dealer called the lender back, they straightened it all out...not sure what was said, and don't care...all of a sudden they decided they can do the interim loan as long as the dealer can get all their stuff done with the land and improvements and get the home out there for us to move into within 30 days...we have to have our closing by July 3rd, where it turns into a regular 30 year mortgage...which is perfect for us, because we had to be out by July 15 and we were panicking about what to do.
Now, things are moving along, home is being delivered Thursday!
So, I guess every case is different. We have friends who just submitted an offer and signed a purchase agreement last week on a home, applying for a rural development loan like us, they have similar credit scores and income, and they are already in underwriting...no telling how long underwriting will take them, but everything else has gone much faster with their loan so far.
But, good luck Phil and Gretchen...oh and for your question, I know on ours, anytime the underwriter needed anything, the mortgage company let us know...just make sure if they ask for anything, get it to them asap, they may be slow about things, but at least you will know you are doing your part. Maybe the lender and underwriter you're using will be much quicker...I hate to see anyone wait like we have and the other person on here that posted about waiting several months.
Good luck!! I will keep everyone posted if for any reasons we have any delays with the second closing...it's nice to be able to hear about others' experiences, it has helped us immensely.
We applied for a FHA loan to lower our interest rate for our first and second (variable). We signed papers at the END of March and here it is June 11 and still waiting. The Underwriters wanted to get copies of taxes from IRS almost 3 weeks ago now and this is frustrating to wait. Every day is wondering if "this is the day" we will finally here. It seems less and less like a "yes" answer will be the answer as the days slowly pass. Today we start to pay .02% of loan amount because it is so late - and why are we the ones being penalized when they are the ones stil reviewing it???
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