Tuesday, March 18, 2008

Good Grief, How Long Does It Take

Up Dated February 2010

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

P.S.

I originally made this post in 2008.  Today, in 2010, all the above still stands true.  However, the mortgage market has changed so in the past two years that there are additional factors causing delays.

The mortgage crisis and federal intervention has most lenders/underwriters being more conservative due to "fear of the feds".  Unfortunately this is a fact.  I have heard it from many underwriters.

Appraisals and property value is another big issue that causes delay.

The low down payment or no down payment programs are overloaded now that the subprime loans are gone.  They don't have enough staff to handle the volume.  This causes great delay.

As a consumer you still have a right to know the status of your loan.  Demand it!  If you have questions leave them in the comment section and we will respond.

Good Luck

Mortgage Underwriting Process

145 comments:

  1. 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.

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  2. 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??

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  3. 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.

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  4. 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!

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  5. 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?

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  6. Where are you from Anonymous? I submitted my application and it just went to RD.

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  7. 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?

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  8. 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.

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  9. 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...

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  10. 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

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  11. 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?

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  12. 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!!

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  13. 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.

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  14. 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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  15. I'm miserable. I can't sleep I can't eat. All I do is worry about this underwritting and I leave messages and my loan officer has not returned, she only emailed me and said the loan is in underwritting. They have cashed the check for the appriasal costs, so I assume they have scheduled it, but I get no calls or emails. it is very flusterating. I mean, I am a big girl just tell me that you don't know or that it has not approved. I'll live but at this rate, I may die in a car accident because of lack of sleep or lack of focus on the road. I wish the office was closer to my work,I would just pop by. I mean you are right we are paying them a lot of money for them to start avoiding us once the papers are signed. Besides that where is the respect?
    ** On a side note, my realtor is awesome. She has been in this proces with me for over a year and I just with that my loan officer was as accessible.

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  16. We applied for an FHA loan on March, got approved with in three weeks. In Arpil our house offer got accepted, we begin our closing process and were suppose to close by June 25. It's been almost two months, for the FHA staff to process our doc's. Finally last friday we signed off and are expecting to close this week, Its been just a nightmare to go through FHA, they are very slow and picky, they'll take months to process you loan and will ask you for almost evey documentation they can possibly think of.

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  17. I came to this website looking for answers. We were contacted by our bank (the one we do all of our banking with) to see if we wanted to refinance our mortgage (and combine two other loans we have - with them). This phone call came last spring, March 22, 2009 to be exact. My husband and I talked about it for the day and decided to go ahead with it. Why not, if it was going to lower our payments... what a deal! We are finacially good and were not being forced into this refinance.

    Anyways, as you can see the date is now October 22, 2009 and this deal has still NOT CLOSED!! I am frustrated beyond words. Our credit is excellent (in the upper 700's).. all payments have been made on time, etc. This is outrageous. I call to inquire.. I hear, "It should be anyday now".. over and over again. I feel like getting an attorney.. How much money could of we saved over the past 7 months??? Early last spring we were told our rate was locked in at 4.5%.. so it didn't matter when we closed.. it would be that rate. Just the other day, the loan officer called and said our appraisal didn't something or other and that our rate was actaully going to be 5%.. what a scam. Our appraisal came in about $12,000 less than what was owed. Do you have any advice???

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  18. Rebeccah,

    Thanks for leaving your comment.

    There are a lot of variables in your scenario and I will try to address them.

    I have no idea why the process would take seven months and of course it is unreasonable. It could have been appraisal issues and communication should have been better.

    Refinance loans that are sold on the secondary market to Fannie Mae, Freddie Mac, FHA etc are usually locked for a 30 to 60 day time period. They do have expiration dates and in most cases can be extended for a fee. The cost to extend depends on the days extended and the loan amount. It appears the loan was not locked, or was not extended.

    Secondary Market mortgage rates or at least discount points are driven by the type of loan and the loan to value.

    It is possible that this is an in bank type loan that is not sold on the secondary market. If that is the case, the bank would have their own underwriting and lock guidelines.

    "Our appraisal came in about $12,000 less than what was owed." Since the bank is offering to make the loan over the appraised value, it appears to be an in house type loan and could be a good deal. Weigh the benefits at the new rate.

    We don't give legal advice, but it most likely would just cause more stress and little benefit. I would take it up with the bank manager.

    Good Luck,

    Jerry B. Sanders
    www.peachstatemortgage.com

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  19. Hi Jerry! It looks like I mis- quoted myself... I wanted to clarify :-) The appraisal came in $12,000 OVER what we owe. Also, I have been told all along by our mortgage guy that our rate IS locked and that they were paying the fee to keep it locked. I was told that specifically because the approx. closing date came and went last July. Back in April when I received the letter about the July closing date, I thought July was way out there... Now here I am almost into November and we are still waiting. The appraisal was done in September..
    We have got loans, paid loans off for years and have NEVER been through this before. Honestly, I have NO idea what the problem is.. we are the type of client any bank wants.. bills are always paid on time, steady work, etc. Did I mention this is one of the Biggest banks nationally... one of the banks that bought up another bank when all was going south. And... we do all of our banking with them, including our loans... this is a refinance. Thanks for responding :-)

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  20. Rebeccah,

    Even at $12,000 over it still appears to be a non-secondary market type loan. I am assuming the two loans you are paying off are not loans against the subject property or were not taken out to improve or buy the subject property making this a cash out refinance. Cash out refinances are currently limited to 85% of the appraised value. Below is a link to the Fannie Mae Eligibility Matrix that may be of some help. Freddie Mac is similar and FHA cash out is limited to 85% also.

    https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf

    I am guessing that your loan to value exceeds 85% and the bank is doing the loan non-secondary market causing the rate increase.

    I hope you get it worked out.



    Jerry B Sanders
    www.peachstatemortgage.com

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  21. I am currently in escrow for an REO. (Original offer signed 7/28/2009- yes JULY). I am a HIGHLY motivated buyer- and have gone well above and beyond what has been asked. My file is currently in underwriting- waiting to be documented (for the past week I have been told that I should get docs to sign by tomorrow) My file went to underwriting on September 9. This is getting rediculous. I got contingent loan approval from the underwriters on Oct 5. I submitted all they needed submitted by Oct 10including additional pest inspections, paystubs and tax returns which they had already recieved, and have the appraiser go back out to the property to check out the hot water heater b/c she claimed it wasn't on the last time she went out (which it was, my realtor verified that the hot water was working). The selling bank wants to back out of the sale unless we close by the 30th. Last I heard the underwriters are trying to decide if I should get some pest spraying done now, after I sign docs or after escrow. Seriously- that's what the hold up has been for 3 days. They keep this up I will lose the house and the 2k I've already put into it between my good faith deposit and inspections.
    Funny thing is that the loan is through BofA, and the selling bank is a subsidary of BofA.

    Oh- and the other hold up- the underwriter who first recieved my file (BACK IN SEPT) her father was ill, so she left work for 1.5weeks- leaving my file sitting on her desk. I totally understand family stuff, but really?? Couldn't hand that file off?

    Is there a point where we can do soemthing over these negligences in business practices?

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  22. Wow My situation is just as yours Miss Sharon. I too went into escrow for an REO on the same day as you, July 28,2009. I found a foreclosure that was in Great shape, just needed new Garage, finish the basement, new kitchen and some other little cosmetic things. I applied for a FHA 203k loan OMG!!! This has been THE most stressfullest(if thats even a word) time in my life!! Loan officer has been NO, NADA, ZERO help to us. He won't answer our calls, and when we do talk to him all he says is everything is looking good...?!?!?! I have had a zillion extentions, my lawyer called me today and said this is the last extention the seller will accept. My lawyer said they will either pull out of the deal or possibly charge me like $200 a day until we close.
    I went into this knowing that FHA loans take a little longer, and
    203ks even longer but this is ridiculous!! 90 DAYS NOW???? what the hell is going on?? 3 wks ago got approval with conditions(thought this was fianally about to end), something about appraisal, and also underwriter says i needed to use different contractor because the bid was too high for the work that was needed. But mind you i was within the limits of what the FHA consultant who THEY had come out to do the write up...which cost me $800 to do.
    So I immediately, the next day, got another bid which was much lower and faxed right over. L/O claims everything was resubmited. here I am again waiting b/c it had to go back to underwriting and now its going on 3wks. I am at the end of my rope. This could very well be the reason so many foreclosures are just sitting there, cuz underwriting is taking their pretty little time.
    Well I guess I shouldn't put all the blame on uw, I really think this mortgage company sucks just as well. I really wish I could pull out and go elsewhere without losing this house. $350 home inspection, $800 FHA 203k construction write up, $2000 deposit... thats alot of money to lose.
    To top it off lease ended the end of june so i have been living in my parents home since july with husband and 2 kids....miserable!!

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  23. I'm not in the same boat - yet - and after reading all of this, I'm getting a lot more nervous. I went with a lender out of state, which had me worried a little at first, but he was assertive and I liked that. At any rate, we bid on a home the day it went on the market, November 15th and had it accepted by the seller November 16th. After having troubles with long ago credit problems, we found we couldn't get financed for the home and were heart broken. Then, my father-in-law agreed to purchase the home for us and we would then refinance in about 6 months (all it will take for our scores to be over the threshold) and vwala, we're back in the game. So all documentation for "dad" was submitted by last Friday, appraisal was completed two days ago and it's been in underwriting for 4 days. My LO is telling me we'll have an approval, without question, by this upcoming Wednesday and close by December 15th.
    From what I'm reading and learning, I really think it has to do with who your lending from? I've had the most positive experience with this company (TMS out of NY) and the loan officer (J Bruno) emails me at least three times a day to keep me informed of everything, even if there are no changes. I'm just nervous now as I've been reading horror stories and truly hope nothing falls through in underwriting. . .
    Good luck to everyone, sounds like we need it :)

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  24. I am working with BofA. They took my application over the phone , knowing full well that I need to close by 4/23/2010. They took my application 3/1. I had a full approval with another lender, but they made a mistake on my closing costs and expected me to pay the difference.

    It took 3 weeks for me to get the "packet" that was lost in the mail. I supplied it, and it was received, in full, confirmed by email on 4/7. It is now 4/14 and we have just over a week until closing. My sellers are going out of the country. How long can this take? It's a 30 year mtg, FHA, 10% down. I was told underwriting took about a day. What did they do all that time giving me a conditional approval? Do they really have to verify absolutely everything?

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  25. Meg,

    It appears that the packet you are referring to is the application, required documents and disclosures to do the loan. If that is the case, the process most likely did not start until 4-7-2010. Not a lot they can do without the above. If this is the case the appraisal and title work were most likely ordered 4-7-2010.

    When most lenders receive a loan package a processor will verify that all the required documents were received and in some cases have to order verifications from third parties. This all depends on what the approval called for. By approval, I mean the automated system. Normally, a verbal or written verification of employment is required and a transcript of your tax returns from IRS. Since this is a purchase, they may need to order written verifications of the assets.

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  26. seem like a lot of people have trouble with BOA, what's really going on? maybe it something that really need to be looked into. sound like it could be more to the story

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  27. Im happy to find a blogspot to express my concerns!! I close on the 24th of may (next week) and Im still waiting to hear from the "underwriting team". Im nervous because I received a call Monday (17th) and they denied us because are debt to income ratio was at 50% when its suppose to be at 43%....sorry for the long story but we called the same day and asked if we can put 10% down instead of 5%. We also forgot to submit documentation of our 401 K statement as well....Yes! We are stressed and are desperately trying to move but Im loosing hope:( it's been 3 mths since our offer has been accepted. My loan is FHA through chase and I know that FHA usually takes awhile. Should I ask the seller for an extension???

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  28. You need to make sure that the seller is going to hang in there with you. You may need an extention. Talk to your R.E. Agent.

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  29. You need to make sure the seller is willing to hang in there with you. You may need an extention. Talk to your R.E. Agent.

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  30. Friday May 21, 2010 my parents were supposed to have settlement on there current house and new house. On Wednesday we were told that the buyer of our house was having issues with her mortgage company. Finally we were told she is going with another company. We are on pin and needles, everything is packed, and I'm sleeping on a mattress. I want to leaveeeeeeeee. I wish there was something to speed up this process sent we signed paper work on 3/29. Please tell me something reasuring.

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  31. It depends on WHY the buyer went to a different mortgage company. It is not a good sign.

    I guess you don't have any choice but to wait it out. At least you have a matress to sleep on. Say your prayers.

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  32. I guess everyone has similar issues. We too are waiting for the underwriter's approval. Our problem is our apartment lease which will end on May 31. We don't want to sign for a new lease if there's a chance of leaving soon. Indeed much prayers are needed.

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  33. I don't feel so alone now. Experience very similar things to all of you. Our system is overtaxed and flawed. I pray something changes for all of us and soon.

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  34. This is insane! In February, yes February, we applied for, and was approved immediately, for a home equity loan to install a new boiler and make some other repiars. Our house is free and clear-no mortgage-nodda. Here it is May now-and I just recieved an email saying that "due to the increased volume, we are experiencing a delay in underwriting" You have got to be kidding me! This is with a bank that we have been with for over 30 years to! I just don't understand-oh, and the LTV is 30%!!!!!

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  35. You can thank the Government for this intrusion! Sorry. I can't help it.

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  36. We started this the first week of March. We have gone to USDA once already and was kicked back because they ran out of money. The other realtor took two months to get termite inspection, well inspection and well inspection. We had the appraisal and inspection completed by March 31. We have redone it all and now waiting for USDA approval again. Mind you we leave TX on Saturday to go to our new home in Illinois. We don't even know if we have a home to move into. This was suppose to be complete and all paperwork signed on June 2nd. Thanks to that other realtor we may be sleeping in our van with 2 kids and 4 animals. To top it off the seller had a balloon payment on June 2nd. This is crazy. My husband and I have said we will never do this again. Please, pray we get an answer before we leave.

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  37. My husband and I are packed and ready to move. Our closing date on June 4th, 2010 has come and gone. We were supposed to be out of our rental on the 10th. We are in limbo because the USDA Underwriters are having a problem with their Guarnteed Underwriting System and need to update the system. So, we cannot underwrite or close on the loan until this is fixed. If this doesn't get fixed, all we can do is wait for more USDA Government funding. Meanwhile, the sellers have moved out, we haven't moved in, our finance company is in limbo, and our relestate agent, as well as the seller's agent are all waiting!!! We were approved by USDA Guarenteed loan over a month ago. The longer we stay in this rental the more money we will owe.
    Communication has been scarce. No answers, no phone calls, no return emails. Just like everyone else. What a nightmare. FHA was way easier and much faster three years ago.
    Good Luck to everyone out there and I hope we all can close soon!!!

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  38. USDA is not an FHA loan. The GUS underwriting system has not been updated to handle the new 3.5% funding fee. If your lender will provide the right documention to USDA the will issue a CC and some offices are now even issuing the loan note guarantee. Your lender has an option to close that loan now.

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  39. I know USDA is not an FHA loan. We were approved through the USDA Rural Development Guaranteed loan.
    My lender sent an email that said she could not underwrite or close any USDA loans until the GUS is updated. The only two solutions to the problems are: USDA's modification of the GUS to accurately reflect approvals with the future guarantee of the USDA loan, or refunding of USDA by Congress or redistribution od remaining funds within our individual region/state. Our funds in our state have run out.
    Even though the investors stated they are accepting locks on USDA loans, questions still remain on how to handle USDA applications all ready in process, (such is our case), redisclosing of the new guarantee fee on existing applications, handeling of new USDA applications, the underwriting process as the GUS AUS system is not currently updated to reflect the guaranterr fee, and how to handle existing locks (extensions/relocks).

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  40. Let me revise my statement about the FHA being much easier and faster three years ago.
    The last two times we were buying a house we went FHA. This was in 2002 and 2006. It was a much easier and faster process. Now that seller contributions for help with the down payment are no longer allowed, we chose to go USDA because we lacked the down payment. This has been a very long, frustrating, and time consuming process. What can we do but wait it out? Its our only choice.

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  41. You are right. What other choice do you have. I understand that lenders and FHA are now starting to loosen their guidelines.

    Use to be FHA, ... well, let's not go there. I have some very strong opinions that I should not put into "Navy Language". Fact is that lenders are relaxing the guidelines.

    We have no choice but to wait.

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  42. My husband & I have been under contract with our dream home since the beginning of June.

    We found a house before this one & planned on putting a contract on it, but the funding was going to run out in a week (May 6th) We were told it might not come back for several months or even a year if it did, so we were delighted when we got the call from our lender the beginning of June that said "I just got word that the funding is back & it all it needs is signature from Conrgress & the President...so you two go out & find a house! By the time you put a contract on it, it'll be signed". So that's exactly what we did & here it is, a week before closing and no news on the Bill and it's a few days away from August! Because we are fast approaching our closing date with no signatures on the Bill, our realtor asked for an extension..and the sellers denied it and now we're losing our dream home.

    Had we known any of this heartache would be happening, had we not been told to "go look for a house..all is good", we would have never even looked in the first place.

    Dissapointed in Kansas

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  43. Dear Dissapointed in Kansas,

    Usda Guaranteed approved loans are being issued Conditional Commitments. They know the funding is coming. Worse case new funding will come in October.

    In the mean time many lenders are closing these loans based on the conditional commitment. It is the lender's option. Some lenders are afraid of the risk. Chase is closing these loans every day.

    Ask your lender why they are not willing to close the loan now if they have a conditional commitment?

    Good Luck!

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  44. Unless something is done about the underwriters accountability to the customers we are going to be under the mercy of the nameless and faceless underwriters sitting behind his or her desk and doing whatever they want and with no one has the power to tell them to do their job quick and on time and not to ask for stupid things.
    There is no system of check and balance in the mortgage process. The underwriter has all the power and the loan originator or loan processor are nothing but insignificant clerks. The loan originator who is the main contact with the borrower should be the one in control of the process from A to Z and the underwriter should answer to him or her. The underwriter must be ordered by the loan originator to finish his work on time and must be ordered by the loan originator not to ask for irrational things from the borrower.
    Unless the above happen expect the continuous horror stories in the mortgage process that you have seen a sample of them on this thread.

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  45. The banks get bailed out, The auto industry gets bailed out, the congress gets a raise, the polititions pad their pockets and the poor guy trying to purchase a home for his family is treated like shit by some gutless individual the US Government calls a Underwriter Who is allowed to treat people like their nothing.FHA should be renamed to STP Short for Screw The People.Every time I expect to hear sometging on my FHA loan I have to call just to be told the secret underwriter needs or wants I should say some other document. What I wouldn't give to be able to Investigate some of these underwriters that literally hold the power of home ownership in their hands.

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  46. I understand how you feel about these underwriters but these underwriters are not Government employees. If it is indeed an FHA loan, they are orginated and underwritten by outside lenders.

    Lenders are over cautious and they over document because of all the government intervention and the mess the market is in right now. It is only going to get worse.

    Good Luck.

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  47. As far as all USDA loans are concerned....they are currently in the process of trying to get GUS(Guideline Underwriting System) back up and running. They turned it off because they were in the process of changing 2% to 3.5% guarantee fee. Ny lender says that the system should be back up and running any day now and that USDA is playing the hurry up and wait game with us. They just keep telling my lender- any day now. It seems like we are forever and 2 minutes away from closing our loan. It only takes about 2 minutes to run the paperwork through the system and get approval,or approval with conditions, or denial. my app was ran through before the system went down but in order for it to be approved now they have to run it again with the 3.5% added instead of 2%. Government!!!....enough said! They hold out their hand and holler MONEY, MONEY, MONEY.

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  48. Very true Lenders are over cautious but let's be honest the money they loan is not being written out of their personal accounts. In fact the lenders have very little to do with who owns a home and who doesn't It's up to the underwriters and if say for instance they had a bad night the night before or a bad day oh well !!!!!!!!!! Sorry for the person that has a file in front of them that day. Denied Denied. So Don't make excuses for these poor overworked underwriters. They get paid to do a Job like every one else If they can't do the job properly and in a proficient manner then they need to look for another job.FHA underwriters need to be held more accountable for the way in wich they treat people. After all these same underwriters are the ones that approved people for houses that they knew the person could never afford. Now they don't want to approve people that can purchase an affordable home and make the payments on time.It's really a shame if your honest you just don't win.

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  49. Well, as far as USDA loans are concerned there are many USDA loans. Anonymous is specifically talking about the USDA Guaranteed Loan.

    I understand your anger but it needs to be directed in the right direction. It is not USDA or their management that has caused this issue.

    This is a HIGH level Political issue. Not the people at USDA!

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  50. About Underwriters in general, yes they have some power so to speak.

    The rules they have to follow are set by the company they work for. If they don't document or if they don't make a good loan they get fired! They do not have grand salaries! It's more like slave labor.

    They have to almost over document every loan in the market today.

    Lenders sell to the secondary market. If the docs don't support the loan or if it is marginal to the lender's guidelines they can't sell it.

    It's all about the secondary market. Who controls that?? Think!!!

    Don't blame the underwriter because they are just trying to keep their job. They are not allowed to communicate with the loan officer or the applicant. They must keep an arms distance so as not to create a conflict of interest.

    Yes, communication methods need to be improved. You should focus your anger at the lender or the new government controls.

    Get this. FHA underwriters are just regular underwriters that have been trained on FHA guidelines. They just work for a "HUD" approved lender, ... not FHA!

    This is probably too much information. I guarantee these underwriters are not the people to blame.

    Here is another shock. Many MAJOR lenders have contracted their underwriting out to other countries. These folks have had no training
    and they just have a list (so to speak) to follow.

    I know this is a fact as many out of country underwriters used to call me at 3am for guideline clarification!! That is why I no longer have our company phone number on our websites.

    Major Lenders don't want you to know this so they have a number you can call here in the US to ask your question. Only one employee. They contact the folks in the other country and then call you back. ... another reason why your loan officer can't even get information.

    Reseach the company you apply to. This is a major big deal!!! These are reasons why most people are having the problems they are experiencing today.

    I could right a book on it. I understand why you are pissed. You should be.

    Think of all the unemployeed American underwriters in our country. Their jobs have been outscourced!

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  51. WE are the one's that voted in these money hungry polititions that write these laws according to who's paying the most to get these laws past. Come on people what These mortgage companys and underwriters are doing and asking for is rediculus. It's called the trickle down effect but don't ever expect a drop. You have heard the saying the buck stops here? well here's your proof the buck is not going in anyone's pocket but the bailed out banks.

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  52. The only thing that makes me feel any better about my situation is that I'm not alone in my frustration. I'm sorry for the rest of you I know how stressful it is.
    I am trying to purchase a bank owned home on an FHA, HUD 203K program. It was held up in underwriting for three weeks. Then was finally approved. "All right the hard part is over" so I thought.
    We had to ask for an extension on closing, the seller gave us two more weeks. "All is good" so we thought.
    The lender doesn't think everything will be ready in time to close. When we inquired on another extension we were told the seller was not willing to give us anymore time.
    So here I am facing a closing date of August 20th and have absolutely no idea if I am a home owner or not. I'm out earnest money, appraisal fees, and inspection fees. Not to mention all the sleepless nights and time taken off of work to track down all of the additional documentation the underwriters requested.
    In the end all I may receive is a "sorry we did the best we could"

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  53. Purchasing Bank-Owned property right now is very painfull. Folks think thy are getting a great deal at a low price.

    One of the problems is that the amount owed is more than the purchase price. The bank has a problem with this and a very complicated formula as to weather they should sell at that price or keep it on the books.

    Then there are the repairs the New Lender requires and the list just goes on and on.

    When attempting to purchase an REO or forclosure make sure your contract has enough time to jump through all the hoops. Banks are slow and unwilling to make concessions.

    There will always be additional cost.

    Good Luck.

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  54. Waiting and paying extention fees to Wells Fargo as Underwriter has been working on this loan for three months. We have paid over $1100 for this loan to be extended while waiting for it to close. All documents and credit has been approved. We just found out one of the underwrtiers had to leave on family leave, and was over half way through underwriting, but failed to tell anyone where she was with this and now they started all over. Will we get our money back for all the extentions Wells Fargo keeps asking for. This is eating away at our savings. Please help!

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  55. Make a long story short. Trying to buy house we statred around august 1st. All the papers go to under writing finaly the 15th of sept. we were told 48 hours they will be returned and we should then be able to close. Here we are 4 days out and the papers are still not returned. Any leagle ramifiction? Any idea who to call. LO says they should be back tomorrow. We are leaveing for new york in 72 hours.


    One othe thing its a 5% conventional....

    Any help thank you

    ReplyDelete
  56. Not a lot you can do other than wait.
    Turn times depends on volume and of course staffing. With the drop in rates, they could be falling behind in turn times because of increased volume.
    Good Luck,

    ReplyDelete
  57. Wow. some scary and stressful stuff going on here! We signed the purchase agreement September 18. The lady doing the appraisal was at the house on October 1. I am hoping we don't have all these problems... We are applying for a rural development loan. We got a letter from our lender saying that our loan was approved but that there were condition: appraised value at or above sale price, rural development, and underwriting all have to come back good. Since the appraiser was there how long do we wait? I know this is a loaded question seeing that it can be a week or several months... If it helps we are in Gladstone, MIchigan. Has anyone in the UP recently gotten a RD loan.. did yours take several months to go through everything?

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  58. It is soooo important for buyers to interview potential loan originators, lenders, ask about who their underwriters are, whether they are in house or out of state, if they have specific underwriters assigned to them, how long has the LO been in business, go online to read reviews of the company and individual, understand the loan and underwriting process, what is required to have the closing funded or do the buyers and sellers have to sign the docs for closing first and then they have to be sent back to lender for approval on and on. I am a seller with a closing date, a confirmed and have to pay for out of state moving date the day before the closing and a contract on the next home. If the lender delays funding, delays closing that will cost us a lot of money, not to mention anguish to all parties concerned. They/ the lender/ will have had 6+ weeks to get the FHA loan for the buyers approved....I am so sorry that so many people have had and are having such negative experiences and posts about the actually delay in working these loans or not being honestly informed about a denial and shopping about for a lender in fantasyland who might fund the loan.... it is disgracful and apparently business practices that go on all the time.

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  59. I am a seller waiting on a buyer's USDA Rural Development loan to go through. It has been since the beginning of Sept 2010. Today is Oct 10,2010. The closing date (2nd one now) is supposed to be Friday, 10/15/2010. I am so frustrated with not knowing what is happening with their loan and if it will go through. I am trying to be patient, but I am feeling agitated in that it is taking so flipping long to go through.

    We just want to close and get out from under paying our mortgage on the home, along with our rent in another state where we reside. Lenders and Underwriters need to take into account that there are people shelling out money and with lives on hold, waiting for their decisions; and that they are impacting more than just the pieces of paper they need to complete. 6+ weeks is a RIDICULOUS amount of time, especially when all the paperwork/requirements are fulfilled from the buyer perspective and has been since Sept 2010.

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  60. Dear Anonymous,

    I hope the loan your buyers are applying for is a Guaranteed loan and the funds have already been obligated. If not, there could be a longer delay because the Guaranteed program has no $ at this time.

    USDA is issuing Conditional Commitments Subject to Funding. This means that The lender can close if he chooses but the loan will not be Guaranteed until USDA gets new appropriations in FY2011. Most lenders will NOT close unless there is funding. (Chase will Close)

    If it is a Direct Loan, well they don't have any $$ either.

    Good Luck.

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  61. So we signed papers to purchase a home on September 16. Our closing date is suppose to be Tuesday October 19, 2010. Rural dev just approved of everything and then told our lender there is no funding. My lender said that her boss is up there fighting with the people. So now what? Am I probably not going to be getting a house now? My lender said something about if funds are appropriated we should be okay. So what are my chances here?

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  62. This happens every year. The new fiscal year began 10/01/2010. Funds have to be appropriated. It shouldn't be long but no one knows How long.

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  63. Apparently all must be good because we got the call today and we are still closing 10/19/10. So that is good but holy cow on closing costs. We are paying 59000 for the house and our closing costs are 5275. Is that about normal or high?

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  64. Every transaction is different and has different closing costs involved. However, on a Guaranteed loan you do have an additional 3.5% Funding fee that is usually financed into the loan but it may still be considered closing costs.

    Glad it is closing for you.

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  65. I've joined the club. We were supposed to receive approval last week (Wednesday). The thing that gets me is they did call for verification of employment and did another credit check on that day. What else would be taking so long? Everything is completed. The property is ready to go! Thoughts??

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  66. Those are usually the last two checks before the "OK to Close". Good Luck.

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  67. I am in the process of refinancing my home. It is new construction that I moved into in March of this year. I am able to get a rate 1% less than my original loan. The problem is with the appraisal. When I started the refi process, my LO said we could use the old appraisal since it was under a year old. Then I received a call from him telling me that since the appraisal was dated Nov 4, 2009, that it will be older than a year by the time we close which was suppose to be in 30 days. I asked him why, if I began my refi on Nov 3, 2010, that it didn't qualify for the one year policy. He said that it wouldn't pass their underwriting which is in-house. I've already researched, through an appraisal's forum, why my appraisal is dated for Nov 4, 2009 when the house wasn't completed until March 11, 2010, but found out that they can do that. So now my question is if there are underwriting guidelines that apply to all underwriters, in-house or not, or if this is just my banks policy.

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  68. It appears that the appraisal dated Nov 09 was for the construction loan and used plans and specs. That appraisal was used for your loan in March 2010 and required final inspections...

    Conventional guideline is:
    If the appraisal is more than 4 months old and less than 12 months, it can be used on a new loan. However, the original appraiser must do an update on the comps and values. It is not much different than a new appraisal other than might be less expensive. In today's market the value is likely to be less.

    Hope this helps.

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  69. Has anyone from Ohio had any problems or good luck with the USDA loans? We just signed up for one and was wondering how smooth they were going here in Ohio

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  70. They are starting to flow here in GA now that they have funding, ... In Tennessee too from what I hear.

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  71. anyone know anything about funding in sc

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  72. I think they have funding every where. Because of all the changes to the program things are bogged down. And, of course it is the season. They have a lot of use or lose leave on the books so it's hard to find anyone working.

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  73. What does level four with an underwriter mean?

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  74. It depends on the loan product.

    I am not aware of a Level 4, it may be lender specific.

    Fannie Mae has loan levels to three. These level are based on a number of factors such as credit score and debt to income ratio.

    Normaly, the higher the level, the higher the rate.

    Good Luck,

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  75. We applied for a FHA refi on our home to purchase land on Nov 19 2010. We were pre-approved and sent in all necessary documents. Received and e-mail from lender stating we were approved based on an appraisal being done. We put an offer in on the land with a small down payment, hired a lawyer, paid for the appraisal and prepared for the closing. A week later the lender said we were canceled. Meaning we were not approved. I have been making steady payments on my home for more than 12 years. And have 2 late car payments with in the last year. Our credit scores are 655 to 695. Now that we have money invested in the purchase after receiving an email stating that we were approved the lender can only say, sorry! Any help would be greatly appreciated.

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  76. Hello,
    I applied for a conv loan on Dec 2nd ... the paperwork went to underwriting and it is the 22nd and I hear... I'm waiting for the underwriter etc..... from the LO and still nothing! Credit scores are 750 and all complete documentation has been sent...anything requested was submitted way way early on as I have good records. One question I was asked by the Underwriter was why I was purchasing a home in close distance to my existing home and not selling my existing home... I wrote a letter and certified that I was in fact moving into the new home and it would be my primary residence and that I am going to rent out my existing home because of the fact that the real estate where its located is sought after, good schools, etc... I have a right to keep my existing home...geez! I'm starting to worry not that nobody seems to respond and after having such a high credit score and complete full and good paperwork (no questions, high income, no questionable transactions, etc...) why is this taking so long? I'm frustrated!

    ReplyDelete
  77. A 3 week turn time in this environment and the holiday season would be an exception. Turn times are determined by volume and scores etc are not a factor.

    The underwriter must inquire as to why you are retaining your existing home. It's part of the approval process.

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  78. We did it! Just followup from my comment on Dec11th regarding being frustrated over the process... We closed on the 31st!! What a Happy New Year. Also... after speaking with quite a few people, I believe I'm an exception having closed so quickly so I'm quite pleased with the Bank and the whole process!

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  79. I posted something here earlier this morning but I don't see it, hmm. Well, I started reading the comments posted and am happy that some of you had to wait it out, but got approved. Me? I had to waited out and then get rejected. I like the anonymous comment dated August 11 2010 at 10:53 pm. It said that the banks gets bailed out when in trouble. I went through a lot of home hunting and appointments, documents after documents, faxing, phone calls, emails. Earnest fees, home inspection fees, lock in interest fees etc. Sign this sign that. You folks got me going. My kids had big plans and was very excited. I had big plans, then the bank calls after more than a month of excitement, I'm sorry sir, the underwriters said that you're not good enough. Should I do what the bank does when they're in trouble? I think they're just full of it. Almost every home I walk into with my realtor she says this home has potential. Too bad banks don't say that to the applicants. I don't know what the f..k they're doing but they're full of crap. In the beginning, everything looks good and you qualify. After the hustle and bustle, you get a call from the underwriters, sorry, no can do. I saw the movie Drag Me to Hell, very interesting.

    ReplyDelete
    Replies
    1. I hear ya. I am just about to have a nervous break down right now. After I was told we qualified for house loan & everything was fine (after giving them all the documents they've asked for-even stupid ones!!!), my LO called me and asked why was my husband's 2010 income tax showed $5,000+ income? I told him the company lost a lot of business so emplyees had to go on unemployments and business picked up in 2011 and they are now back in full operations in 2012. My LO told me he thought everything was fine until his co-worker said that we might have an issue with the underwiter. WTH!!! Now is what counts!!! I always have a good stable job and can afford the morgage even if my husband is not working. They made my hopes up very high and my children are very excited in moving to our first home. Now I felt like dead inside me since I do not know if my loan will be denied. They should not mislead people because there's nothing worst than seeing my children lost their dreams.

      Disappointed Mom

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    2. My husband and i have been through 5 Diffrent morgage companies in the last 2yrs.we have been dinied 3 times.and finally have a approvel.our file was sent toRD.we live in ct. our closeing date changed 4 times.we was told that it would take 48 hours.each week goes by no information for us.we live in the pha.and we have 3 YOUNG childten waiting to move into a home of their own.its been heart breaking stessful. iam a fighter and a suvivor and will not give up until we win.with a pray to god and a will power to win anything is possible.keep fighting.!!! because i know i will.


      Delete
  80. I have been doing my underwriting thing for about 6 months I have done eveyrthing everyone has asked of me and more I knew that my credit had some scraps and bangs on it and my lender keep telling me just pay this and pay that and I would be fine I have paid all this and paid extra things on my credit then it comes to that I have signed all the papers too long ago and now they need to find another lender I was to be out of my appt on May 1 and as of May 8 I am still waiting to hear if I am out of underwrighting my lender has told me he has 2 lenders working on my file and as of 4 pm on Friday May 6 I should be out of underwriting late Monday early Tuesday I have moved my closeing day back 4 times I think if I do not make this next closeing date I am just going to give up. I will stay in the appt another 6 months and start from the beging again. So if you have any comments please post.

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  81. So my husband and I had a short sale in our history be us of a ob transfer and then 3 1/2 long years trying to sell, we were forced to short sale house. We worked on our credit scores for two years during and after. Broker told us our credit scores were good and the short sale would be no problem. We had deadline to be out of rental house. I let broker know upfront we were doing a 401k hardship withdrawal for down payment. We were told we are good to go. We had to get the withdraw done so we could show we had the down payment. Offer was made on house March 7. Closing date set for April 29. We we told beginning of April that FHA "suspended" our file due to short sale was too recent. We had already taken out 401k withdraw as directed to do. Broker said it was no problem we were still okay. They were going to look for another lender. This process continued right up until 10:30 the morning we were supposed to close...they were still looking for lender. We had one day to find a place to rent and move. And I now owe taxes on my hardship withdraw and penalties.
    Shouldn't a knowledgable broker and lender know the rules on short sales and how they are viewed?? We were completely stressed and left with no place to go. By the way, they NEVER did tell us we were denied. They continued to say they were still looking for a lender. At what point are these people responsible for how they treat people and how much they cost us?
    Lost in PA

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  82. My head is about to explode...I've read every comment here and have completely lost hope. Its the day before closing and now the lender says "there's a snag, your debt to income ratio is 1% above what is allowed" on FHA loan. What!!! is that not the first thing you check before submitting to underwriter??? We have been under contract for 40 days. The sellers have purchased and moved out. We have boxed up everything and turned in a notice. 2 days ago we were told the underwriters signed off on everything, conditions were met, and we were OK, just waiting for customary "clear to close". All involved are devastated. I've sent additional info to try to qualify for a "compensating factor" to bypass the 1%. Can't get an answer from my lender on any of that. Claims he is waiting to hear from HUD. That's it? That's all you can provide?? No path to escalate? Nothing!! Blood pressure is maxed out..........

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  83. A short sale is handled the same way as a foreclosure and the waiting period for FHA is 3 years.

    FHA does not suspend a file. Lenders underwrite FHA loans to FHA guidelines...

    Yes, your originator should know the guidelines.

    The best thing to do is file a complaint with the originating company and the state banking authority.

    Good Luck

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  84. I am not really in your boats but I wanted to share our problems and see what you guys thought. We signed the all the contracts and sent in escrow money on April 19th. We received all the contracts back signed on April 24th. We are paying cash and closing cost. The closing company is a lawyer's office that deals with every HUD closing in our state. It is May 19th and we still do not have a closing date....there is no financing issues, money issues they already have proof of funds plus my escrow. Any suggestions???

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  85. I too have been dealing with Wells Fargo home loans. I get no reply from my mortgage broker Anne Daly, it is very displeasing to think you have to spend that much money and never get a decent reply about how paperwork is going. I have never had any problems with anyone in Wells Fargo but HER!! So avoid her at all cost, she does not have the time to even shoot you a email, it is pathetic and we have went to another lender because of her inaccuracy and willingness to communicate

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  86. I as well are haveing issues with my loan officer, she keeps telling me that we should close this week but no call or e-mail. I have been kicked out of the place I am living in now and have no place to go and have children to worry about. I want answers why it takes so long when everything has checked out and all the paper work has been done, we are supposably waiting on the underwriter that was suppost to be guranteed on this day of May 25th 2011, but as you guessed it nothing in return yet and still counting I been working on this issue for over a month now. I also know that all this has taken a toll on my relationship with my husband to the point we arent even speaking because some just cant do there jobs the way they are suppost to and this is really taking a toll and I am tierd of the confusions and need answers on why it takes so long to close or set a closing date if everything is falling into place like it is. I want a home so I am not on the streets and last house didnt even take this long had the appraisal 2 days on the other place we where looking at so why teh hold up on this one dont understand the proccess of this at all one minute things move fast then boom down to nothing mmoving at all.

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  87. Well you guys are freaking me out...that's for sure. I signed the contract on June 25, 2011. Right now we are still in underwriting. Close is set for Aug 8th. I've been lucky to have constant contact with my loan officer, and others who have been involved with the process. We are doing a USDA loan. So far everything has been going pretty smoothly. One thing I did before starting the loan process, is I asked around and made sure the person who would be doing my loan knew the guidelines of USDA in and out so I didn't have someone giving me the run around because they didn't know what they were doing. Same thing with the realtor. All i can say is I'm so sorry so many of you have been given the run around. I would advise all who are seeking a loan with the USDA or FHA make sure their lender and the people they are going to be working with are aware and understand the type of loan in and out. Also, I am working with a local bank, so that probably makes a different. I can and have email my loan officer at 10pm for a question and gotten a response immediately.

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  88. We are doling a conventional loan with 20% down been in underwriting for 2 weeks & keep hearing we are just waiting for the clear to close from underwriter any day now. They did employment verification yesterday & underwriting told my loan officer yesterday that they would finish the file today, well today comes & what does my loan officer get? Well a complaint from the head underwriter that our loan officer is harassing the underwriter??? Our closing date was a week ago (7/20) & we still have no answers. Appraisal was done & was fine, title search done & was fine, credit is good & plenty of money both liquid & in 401k's...why is the underwriter doing this to us?? Instead of complaining about our LO why not just finish the file??

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  89. My daughter is about ready to give up on the home buying process. In March she found a condo, she was told only conventional or cash. Fine with her, she went conventional, she has no bills, great credit, and 20% down. After paying for appraisal and inspection everything seems great. After 4 extensions it finally goes to underwriting, we do the walk through, realtor shows her the bag with her keys, garage remote, etc. and says any day it should close and the bag is hers. My daughter gets a call 2 days later and is told underwriting threw her loan out because someone didn't do their homework because HOA had changed rules about owner to investor occupancy on condos. Basically banks would not finance a condo and it was a cash only deal now. They told her too bad so sad you can only have it if you have cash now...So now she was out almost a thousand dollars for appraisal and inspection because she doesn't have cash to pay asking price and realtors and loan co. did not do their homework. Now in August, she has been in escrow since June, conventional loan, 20% down, 30 day escrow, told her home should close mid July. It finally went to underwriting in mid July. It is now August as I said, and she just signed her second extension because she is now told that the previous owner had a VA loan and they take a longer time to close which she wasn't told to begin with because her realtor and loan company said they did not know.(Different realtor & loan co.) Her question to her loan company was how long can they keep her waiting, can it go until Christmas? They have no guidelines when they see a closing date? She still has not received a response.

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  90. wow, this is a lot of words! we are trying to buy a house and closing was august 3rd.

    All i can say is...if your loan officer does not call you...at all...most likely you were not approved and they did not know how to tell you.

    That's exactly what happened to me and i was about to crack somebody! I am pregnant with my 4 child at 5 months and I do not need this kind of stress.

    Apparently the loan officer knew he done wrong and felt so bad he packaged our loan and sent it to another mortgage company...who by the way, turned out to be the greatest ever!!! of course we had to do everything again and we even asked sellers to extend till the 17th but they wanted to the 15th instead. So we abide by what they said.

    Anyway, at this mortgage company whom our previous LO sent our loan to...Let me just share a little...i thank God for our new loan officer who got placed to do our loan. he is on it!!!

    heres a short timeline...
    August 1st...day 1 - he asks us to send in all documents required.
    day 2 - order's appraiser...and continueing from day before...he is going thru all our paper work trying to catch any nick that may hold us back...if he saw one...he asked us about it and wrote up the supporting letters to back us up. he basically was looking over our entire file as an underwriter would. we got the Pre-approved that same day.
    day 3 - appraiser goes out to property. LO still looking thru our file.
    day 4 - our loan officer caught a few other nicks and asked us for a lil more documentation.
    day 5 - appraisel paper work is in.
    day 6 & 7 (sat. sun)still looking over our file incase anything pops out he might have missed previously.
    day 8 - appraisel is good and LO needed just a couple more documents from us. File gets wrapped up and ready for underwriter the next day.
    day 9 - file gets rushed to underwriter...gets approved in a couple hours (because we already had all supporting documents and awesome work of our LO). After approval, LO personally drives our approved file to USDA to get its final aproval! due to a point away on credit score, we need to have USDA's final approval. Our LO is confident this should be a 24hr turn around or less. He made sure we have all supporting documents so USDA don't have to work so hard to look over file.
    So, we shall hear word by tomorrow which would be August 10th regaring 'final' USDA approval.

    -the only thing that we are concernced on is IRS to issue our official tax return documents. We cannot close until our LO rcv's those...they need tax documents because of frauds done in recent years. Apparently its a rule. Our tax documents wont alter any changes on our loan approval. Unfortunately, there isnt anything we can do to rush the IRS. My LO officer does have a good feeling they will rc'v the requested documents from IRS soon. They are checking the website on a daily basis to see if IRS issued it or not. Hoping and praying all goes well...we need to close by this Friday August 12th!

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  91. We started a refinancing in June....we are now in Sept. This has been a nitemare. The underwriter had an argument with my wifes employer, basically accusing him of lying. They forced us to close 5 charge cards, some held over 15 years. The forced us to sell an old coin collection and turn the asset to cash. The LO basically stated there is nothing more possible they could ask for. Now, they are requesting deposit info from someone who's not even on the loan. We told them goodbye, enough is enough. It was obvious they had no intention on closing the loan.

    Then, a few days later, the LO calls again and says there is no reason why this loan should not be made since we fit all the guidelines. So he's submitting it directly to the lender, by-passing the underwriter. We really don't know what to think at this point and I told my wife don't get your hopes up and don't expect it to happen. I'll be shocked if it ever happens........

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  92. Wow!!!! This is sickening. Is there any legal recourse? Seems like the majority of you guys are willing to write this stupidity off!

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  93. I am searching for the option of mortgage loan I want to know some details that how much time it takes in process of getting loan approved.

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  94. In today's Market underwriting can take from a week to two months. It depends on your file and the type of loan you are applying for. If you are buying a forclosure it can take a long time too. If it is a USDA loan, lack of funding can delay it for months. There really is no legal recourse but if you feel your situation is different you should seek the advice of an attorney. Good Luck.

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  95. My underwriter has recieved HR vertifications, paystubs, bank statements, and W2's all confirming my income and now wants to know why my company is paying me so much, and if I can confirm I have any no write ups with my performance. SERIOUS?? Then my loan offericers tells me she discussed my issue with her daughter.. What are my rights at this time?

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  96. We started in July with BofA for a 60% loan to value refinance after receiving an offer along w/ our monthly statement (had a mortgage w/ BofA already) Much like Lora above, we submitted everything they asked for, including letters from our accountant, evidence that we owned outright a second vacation home, everything but our kids birth certificates. We were told everything was in. 2 weeks later I called because we hadn't heard from them. Then I was given a list of 6 new requirements, including information on our IRA's. I have not gotten calls back from supervisors when I asked on several occasions. Finally, the supervisor I did talk to agreed that the conditions were past reasonable. Last week I gave them 48 hours to remove these conditions, have not heard back from them so am going to start all over again somewhere else. No wonder Bank of America is in so much trouble right now.

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  97. I have heard this story over and over. I don't know what is going on. It seems like lenders just don't want to lend in todays market. I think a lot of it is politics. I have read articles where the administration is trying to get rid of fannie and freddi so that Government funded and guaranteed loans will control the market. Thats: FHA, VA, USDA and FSA. I guess "the people" have no say in this and we will just have to ride it out.

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  98. Me and my wife wanted to apply for a conventional loan of a 5% down payment. I currently have 2 jobs. One of witch I had worked for 10 years and another restaurant part time job since august of 2010. My wife also works with me in this restaurant job since august 2010. My wife has had a previouse job as a waitress before she had this current job also as a waitress. I have a question about the job verification process. we can provide our tax returns to prove where we have worked before but the tax returns shows no exact date of when we started and when we quit the previouse job. do we need to somehow have to prove the date of when we quite the old job? cause this is a family owned restaurant and the owner/manager are not always there and not always willing to help either. would this make the job verification difficult? is there a way around this? Thanks in advance

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  99. Your employment verification may be a very big problem especially if the owners/family members do not provide the information. Some lenders will not accept verification from a family member/employer.

    If you have bank statements that show the deposits some lenders will accept that. However, the big issue is how strong your file is.

    If you have an 800 credit score and $50K in a savings account or retirement fund, then you have a strong file and they might make allowances.

    If you have a 650 credit score and $30 in the bank it is unlikely that they would accept less than full and verified documentation.

    This is just a made up example to help you understand what an underwriter is looking for. Good Luck.

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  100. Well so much for gaining some peace of mind! I am currently "waiting" have been since 9/9/11 I am fine with the wait its the constant unknown that is driving me crazy. I am trying to go through USDA at the advice of my LO - She said that I qualify and that it would take about 60 days. First closing date is set for Nov. 7 - which I have already been told won't happen, maybe by Dec. 15. The sellers have agreed to make the repairs deemed necessary by the appraiser to qualify for USDA but I can't shake this sick feeling. No one will give me a real closing date and I have small children so all I want to know is do I put up my Christmas Tree or not?!! Now that I have a read all these terrible stories I feel like going home and un packing all the stuff! This is truly stressful.

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  101. I cannot believe what I have read here. I seems that I am not alone in my frustration in trying to obtain approval of a loan to finance our dream home. We have been in underwriting for 3 weeks now. Every week, we go through the same process. No news from my loan officer, until Friday, when she would ask for more documentations. We would submit what is asked the same day with the home that by early next week, we would get the approval. By next week, we would go through the same process. We have a house that we currently live in. We plan to keep this house as a rental. The rental agent had already appraised the rental market price at around $4000 per month, which would more then cover the house mortgage with some extra. However, the lender is only giving us credit of 20% of this amount and added this house as a burden as opposed to a positive income, CRAZY?
    This house is more then 50% payoff and we are putting 20% on the new house, the total asset is way more the amount of loan. We have a much bigger risk then them if we were unable make the mortgage payment. Do they think we would be so stupid as to take that kind of risks if we did think we can afford? I believe the banks are a bunch of idiots with a bunch of robots punching in numbers and not seeing the big pictures. It went from throwing money away to anybody who can sign their names to not wanting to do business with the most reliable clients.
    I am fed up with this. I appears I have to just keep saving and buy only when I have enough cash. The bank will then go through another bankruptcy. So stupid.

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  102. My wife and I signed contracts on August 1st for a standard mortgage with an 203K loan it took over 60 days for the commitment and now almost 30 days for a closing date which we still do not have. I know it takes longer for a 203K loan but 90 days plus???? What do you think could be the problem? Thank You

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  103. Dear Peace of Mind,

    There is always a delay this time of year with any government program. The Guaranteed program has plenty on funds. The delay now ... is transferring those funds from 2011 to 2012. That takes several weeks. Be glad you are using the Guaranteed program. Many other programs many be cancelled. No one knows. It is up to congress.

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  104. well i have to say my appraisel was approved fha approve contract is in gave all paper work they ask for now I am just waiting on a closing date how long does it take after that please help me out if any one knows.. Thank u so frustrated..

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  105. My USDA loan process began in July and it is now november 9. The loan approved in August and it has been a back and forth with them all this time. resign this resign that. Been in underwriting for a month and in processing for two weeks. The sellers are now wanting to back out if we don't close by tomorrow. DO NOT go USDA.

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  106. My wife and I just had our file submitted to underwriters today!!! we have to be out our house we live in now by Jan. 17 I hope it does'nt take as long as everyone else here. My LO and realtor told my that RD is backed up and as of today they are working on Dec 9th files. so they said about two weeks or less. What do you think?

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  107. Wow. Ok I actually feel better after reading alot of these comments. I submitted my application on Nov. 3rd and am still waiting to close and today is Jan. 13th. I thought it was just happening to me. This loan was actually approved on Nov. 29th. This should be illegal.

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  108. Hi...... I just wanted to say that I really enjoyed reading your blog. You have good views, Keep up the good informative info. About new things with helping concept. Thanks for all of your time & work.

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  109. There is absolutely no protection for the working person, it is SCREW YOU, all we want from you is your money, lose your home? SO WHAT, do you think we care, we have our azzes covered and that is all that matters.
    It is coming up on 7 months for us right now, we were told 3 months ago it was at the underwriters...

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  110. only took 2 days for the underwriter to approve our FHA loan.....My loan officer was on the ball and had everything in order prior to submitting it to the underwriter!!!!

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  111. I love hearing stories like that. You are absolutely right. If you have a Loan Officer that is on his toes he can help to prevent some of the night mares that do occure.

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  112. I am going on 10 weeks to get a mortgage. I have enough assets to pay for my house (3) times over. The bank just keeps jerking me around. It's like they don't want to give me a mortgage but wont tell me no. They keep blaming it on the "underwriter" and the guide lines. The guidlines are ridiculous. We have gone from giving homes to the homeless to the point where no one can use any common sense when processing a mortgage.

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  113. Yes, because of the economy right now Banks do not really want to lend money. They are watching their balance sheet closely. They are also expecting the worse this year with foreclosures. We are out of money! I'll say that again. We are out of money and no, it is not going to be ok.

    It is quicker if you go to a mortgage broker because they can shop your loan to a company that is buying and has money. Many of our mortgages now are being sold to the middle east.

    Unfortunately, our Gov is still selling/giving away homes to people on welfare and foodstamps. I call them sub-subprime loans. These loans are subsidized with tax payer money. They can get a loan, but you can't! There is something very wrong with this picture!

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  116. Thanks for your input. I hope your housing market is doing well there.

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  117. I am incredibly depressed about our housing situation. Our buyer's lender, a bank, has taken 6 weeks now to process the loan and we are supposed to close on our new house tomorrow and we may lose the house if we don't close. The bank has asked for another week just to look at a few pictures of a garage ceiling repair that they were told about two weeks ago and did not ask for any pictures at the time! I'm at my wit's end. We have so many plans in place for these deals closing tomorrow we don't want to wait another week. We could lose our earnest money, blinds deposit, my mother is flying in, we have appliances to be delivered in two days. I am so angry at the underwriters and lender and it's not my loan so I feel helpless.

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    1. what ended up happening?

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  118. I'm glad to have found this blog. I am a seller of a home and my buyer is financing through USDA.

    It has been one delay after another and I'm to the point where I am losing hope that we will actually close.

    Every couple of days there is another excuse why the file has not been released.

    Considering that both the buyer and I have jumped through every hoop we've been told to jump through I'm pretty frustrated and so is the buyer.

    Send us good wishes or if you're a praying type of person pray for us because unless there is some kind of intervention from a higher deity I don't see this ending in an actual closing.

    The worst part of this is that on the advice of my agent and attorney, we had our tenant vacate the home so we are also dealing with a loss of income because of these delays.

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  119. I would guess that the loan is a usda DIRECT mortgage. Maybe it is a guaranteed loan but they are moving pretty well right now. All you can do is keep supplying them with what they need. They are very short handed right now so you have no option other than "grin and bare it". We all need to pray about our economy and finance stuff. Hope it goes well for you.

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  120. I really appreciate this article. We are working to have someone assume our mortgage becuase we are moving out of town for work. It has been 2 months since we started and we really don't know anymore today than we did the first day we began. The person handling our loan doesn't return phone calls and basically only ever says "we're still waiting for documents". We finally had to contact the manager to get an idea of what documents they were waiting for. We understand there is a process but it is extremely frustrating to have virtually no communication. If we were receiving updates and informed of where the process was at, it would be alot less stressful. Unfortunately, we are left feeling like we're in the dark and wondering how much time to invest in this process that seems to be going nowhere!!

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  121. My whole life has been in limbo for the last 6 months. What a process! Been trying to buy a 4-plex in phoenix(FHA, owner occupied, live in one, rent the other three ) in a very competetive market. Looked at about 100 duplexes, triplexes, and 4-plexes in various states of disrepair, stripped of copper, bad neighborhoods, unrealistic prices, etc,. I have bid on about 6 that were halfway decent,. Anecdoteally- One of them the seller accepted our offer but demanded non-refundable earnest money prior to inspection and insisted on a closing date we had no chance of meeting- so had to walk away. One of them I had the highest offer ( multiple-offer situation )but the seller took a cash offer that was 10K lower than mine- lesson: cash is king. That one really pissed me off. Then there was another one where the guy was wanting 30K more than what the house had any chance of appraising for and wouldnt budge so he would rather just let it sit there while the cash investors laughed at him and the guys needing a loan couldnt get one because the collateral value wasnt there. And then there was the one I thought was going to go through for sure- it was a fannie-mae "homepath" property ( bidding was only open to actual owner occupants not cash investors ). It was me and some other guy. The other guy won with a lower bid because he offered to pay cash in full. I am 100% certain that anybody with 100K in his checking account is NOT going to be actually occupying a rundown 4-plex in sunnyslope so I guess he just lied on the owner-occupied affidavit. Finally came across one more that the cash investors couldnt bid on ( freddie-mac "homesteps " property ). They are few and far between. I bid 8K more than they were asking and won the bidding war. It appraised for EXACTLY what I offered. But the loan process with the first lender took FOREVER. The underwriter didnt like the comps because they werent comparable enough for his liking, even though there were like 8 comps in the appraisal! The underwriter was hung up on the fact that the place had 3 buildings but all of the other comps had two or one buildings. The underwriter kicked it back to the appraiser demanding different comps, the appraiser kicked it back saying basically that there were none that would satisfy the underwriter's ridiculous demands and that the number of buildings was irrelevant to the value. The back and forth went on for weeks. Then the underwriter went out of town for a few weeks while my file collected cobwebs. Extensions have come and gone. Finally they declined my file ( because of the three building thing ). The mortage broker sent my file out to all 15 of his other lenders to see if anybody was interested. The senior underwriter at an out of state lender viewed the whole appraisal and the whole three-buildings-versus-two buildings thing and stated that the uniqueness was not an issue because the value was clearly there. So we have started over. Now on our final extension with the seller and have 9 days left. All documentation has been supplied as requested, disclosures signed etc. The file actually went to underwriting 3 days ago and we have 11 days left to close. I have spent 500 on the appraisal, 400 on the inspection, and 1000 in earnest money, had to move into a different apartment because this damned process is taking so long, and like so many others I sit here surrounded by boxes. And honestly, I am half-expecting the underewriter to shoot this thing down. I just wish that a person could know one way or another at the beginning of the process if they are, or are not gonna get the damned loan. I mean, they check everything- taxes, pay stubs, bank accounts, employment etc. They tell you that you are qualified and then they either shoot you down despite what they told you or they make you wait for weeks or months in limbo while they fiddle around and cause the buyers so much pain and uncertainty and frustration. What a way to run a railroad! I will be glad when it's over one way or the other!!!

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  122. And now we are dead in the water because all we have from the seller agent is an email agreeing to extend the previous escrow date. The underwriter cant proceed without a signed addndum from the seller. The lender is e-mailing the mortgage broker, the mortgage broker is e-mailing the buyers agent, the buyer's agent is e-mailing the listing agent, and the listing agent is e-mailing the assett manager to try and get the adendum they were supposed to send a week ago . So now we will probably miss the new deadline because the process is stopped until the seller gives us what we need to proceed and by the time they get around to it, it will probably be too late. It's no wonder the backlog of forclosures isnt getting cleared. Unless you are paying cash, the loan process seems to be basically impossible to get through. Everything- every single step- takes far too long, the lenders, the underwriters,FHA, and Freddie Mac just dont seem to give a crap wether the deal gets done or not, and there always seems to be one more thing- one more document, one more disclosure, one more problem, one more SOMETHING holding things up as yet another deadline comes and goes. My credit scores are over 700, I have 4 years on the job, 45K a year, single guy with low expenses and reasonable revolving debt. I have the required money and the required reserves, and have had a signed contract for 2 months now. I have an appraisal that supports the value of the property. I have done everything single that has been asked of me, dotted every I and crossed every T, sent back all requested documentation the same day it was asked for, and yet I cant get this stupid system to function or actually accomplish anything. If this one falls through I am done with this crap. I wish I had never even bothered. It's been a total waste of time apparently.

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    1. Mr Harris. I wish there were words to help. We lost all the experienced underwriters in 2009. Now it seems as though banks/lenders just don't want to make these loans while the world economy is so fragil. There is nothing you can do but wait. I hear your story everyday. IT is even more difficult for the sellers.

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  123. Well thanks for letting me vent here in your little corner of the interwebs. It's a very frustrating experience and judging by the many comments here by people with similiar stories , I am not alone in having these feelings of anger and helplessness. I can imagine that it would be extremely frustrating on the seller side of things as well in many of these transactions, but in this case, the seller is Freddie Mac ( foreclosed property ) and they are sitting on a million properties so you would think they would be a little more motivated to streamline this process and move some inventory. Of course, things are different when you are spending other people's money rather than your own ( as we have seen with the recent GSA/Vegas scandal ). The freddie mac people get paid no matter what and it has been established that they will never be allowed to fail, so I guess the sense of urgency just isnt there. I am out here sweating bullets over this deal while they are skipping through the daisies singing "tra-la-la-la". As for the lenders and underwriters,you are more qualified than I am to guess the reasons for nothing getting done,taking too long, or in many cases, outright obstruction of the loan process. I can't chalk it all up to lack of education and incompetence though. That doesnt explain the un-accountable waits while they just ignore your file or leave town and leave it to languish for weeks. That's a case of people just not giving a flying crap and you cant fix that with education. That seems like a question of incentive and of motivation of some sort.

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    1. I agree with everything you have said. I have seen it first hand in some cases. Many lenders outsource the underwriting to other countries. Really! They have a small office with one or two people to handle all communication. Not a pretty picture at all!

      I hope things go well for you.

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  124. We also are waiting on an answer for an RD LOAN.We have lived in the home we are tring to buy for 3 years. The owner has to sell and can not wait on us any longer. We nstarted in november and was told to wait till march to try again to the length of my husbands job. We started again in march and here we at the end of May. Our loan officer told us we were approved, thet RD had signed off on it. He told us to set up our insurance for next week to close. Now he says the underwriter needs a recent paystub since it has been a while. My question is should i be worried about closing next week? Is this really the end of the road or can there be more delays or worse any chance of still being denied?

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    1. It is not unusual for an underwriter to request updated documents. Hang in there. If the information has not changed things will probably be ok. Good Luck.

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  125. I wonder what ever happened to Mr. Harris (Ty Harris). I have been taking sleeping pills everyday and I have shredded all of the mortgage paperwork. I told the loan officer last week that I was DONE. I've been put through the wringer and I am all out of energy. I just want it to be over. I don't care about getting my dream house anymore. It is a foreclosure that I would be paying 88k for, I am putting over 60k down, 4 years at my job, 740 credit score and THAT STILL ISN'T GOOD ENOUGH FOR THEM! Everyone (from the realtor to two different loan officers) told me this was "slam dunk". Uh-huh, sure. I have to close by mid June. I put so much energy into getting this house it is UNBELIEVABLE. I put in an offer on this house when it was being sold by the homeowner (over a year ago) and the homeowner said they wouldn't do a short sale and she didn't know how much she owed (then why'd she list it at a certain price?!) and the realtor asked me what "plan B" was. Well I've had plan A, plan B, etc etc. I then tracked down the homeowner to try to purchase it from her and told her maybe we could come to an agreement, she never called me back. She had long moved out of the house and sounded defeated and had no energy left. Well plan B didn't work out. On to plan C! So then I looked to find out when the house would go to auction and I actually got a personal loan so I was so happy but no one could tell me who the auctioneer was, everyone at the auction would just shrug or say things like "I've been coming here for years and can't figure this out either". So I went to several auctions for several months to no avail. So then it was plan D. Find out if it became a REO property and get it then. After much work and more months going by I got the acceptance from the bank. Man, was I happy! So happy I cried and said it's mine now. Little did I know...so here we are now...I have 17 days left to close and I don't think it's going to happen...sad...I really wanted the happy ending...

    And Mr.Harris please let us know what happened. Just curious. Was there the happy ending?

    -DEVASTATED IN DFW, TX

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    1. Been in underwriting with an FHA loan since April 23 2012. What a frickin nightmare. People, don't take out a loan to buy a house. Save up the money and buy with cash what you can afford. No way is this worth it. No way.

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  126. Second lender denied me for same reason as first- 3 buildings instead of two- despite senior underwriter stating before we even began the process that it WOULD NOT be a problem, and despite the appraiser stating vehemently that the number of buildings has no bearing whatsoever on the value of the property ( which appraised for what I offered ). The second lender wasted 2 months of my time supplying these ass-clowns with every document under the sun and then shot me down for a reason that was utterly irrelevant. I told my realtor I was done.Unpacked my big screen and a few of my boxes and am enjoying the NBA playoffs here in my apartment which I just renewed my lease on. Not riding this emotional roller coaster anymore with the lenders. Taking my ball and going home... Dont take it personally Devastated in DFW. It's not just you. This system is just not functioning for a lot of people. My advice is save your money and pay cash. Best of luck to you.

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  127. i also have been waiting and now im wondering if they are lying to me after reading all these stories i totally have lost hope its been since march i have had 7 or more extensions and i keep getting 48 more hours well i have to be out of my place also. this really is sad - guess ill keep paying someones else s bills :(

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    1. I have heard, but have no proof, that some banks just are not making loans, even though, they will take your application. My sister went to Bank of America for a loan and at least they told her they were not making loans.

      Step back and think about it. It is sort of scarey isn't it? The banking problem is not just with the Euro Zone Banks! Buckle up!

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  128. We are supposed to close on June 29, and we are still in underwriting. It was already kicked back once for lack of revolving credit, so I had so much fun submitting documents showing that we pay our bills every month. We are extremely blessed to be in a month to month rental through a friend, so we are not at risk of being homeless, and I haven't bothered to start packing yet. I just really badly want this house. It is seriously frustrating being at the mercy of some faceless person.

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  129. Ugh. I empathize with all of you and have a similar story with trying to obtain financing from BB&T. I've been in underwriting for 3 weeks (the date BB&T said the underwriter received ALL of the documentation that was requested). I'm not making my deadline with the seller who could easily sell the house from under me since I am now in breach of the purchase contract. I should be a good credit risk and don't anticipate a problem qualifying but I may not have a home to purchase when this is all said and done. All my bank does is blame the staffing with the UNKNOWN underwriter but that is little consolotation me. Of course I get the "any day now, hopefully tomorrow" response from the LO when I call.

    Question for the experts... how can I tell I'm dealing with a bank that uses an underwriter that has no concern for deadlines and takes forever to process loans?!

    Also, could I have started this financing process with two potential lenders? And then tell the last one to finish that they have lost a customer because they were too slow? I realize this would have some cost to it but I haven't paid BB&T a large sum of money to do this comparatively speaking.

    ReplyDelete
    Replies
    1. Unfortunately there is no way to tell about the underwriter. You might ask if the underwriters are actually in house. Many are outsourced and some are actually located in other countries. Really. What you are going through is common today.

      Not a good idea to make full/formal application to two seperate lenders at the same time. They would see it as fraud and both would turn you down. It would also impact your credit.

      Your Real estate agent should be getting an extention signed on your contract. The lender will not close if the contract has expired and has no extention.

      Good Luck.

      Delete
  130. Your articles and contents are inspirational.
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  131. So it isnt just me...as I have read thru each an every one of these. I finally put my foot down on all the conditions...which have been absolutely rediculous requests. Our offer was accepted July 17th, I have jumped thru every U/W hoop with my brokers requests and responding within 1 hour of receiving. I am paying for another month of storage since our closing date came and went on Aug 13th, we signed an extention till September 17th. About homeless because we rented a condo from a friend and found out that the Association of the condo does not accept renters. The owner is wanting to sue me because we havent vacated the property..but with 2 dogs and 2 cats no one will rent to us now especially short term. I have decent credit, good payment standings, steady nurse job..paid my rent always on time; not an extravagant home 131k, FHA...and even paid and have copy of appraisal which came in 10k over price. I am so frustrated...its taken me 4 years to clean up my credit and get to this point of buying a house, now my daughter is off to college and doesnt get to enjoy a moment of it, and at this rate my son will be off to college before we close. Why is it like this...who controls or regulates the time frames..why cant they write out a list of reguired items needed ahead of time before closing /final approval, why am i paying interest in my credit card for the appraisal and still no answer. I WANT TO BAIL and just find another town home..so much for the american dream...I try to stay positive, I have claimed the home thru prayers, but it is so unbelievably a burden to have to live like a gypsy with my son. They say "don't worry, go ahead and register your son in the school district we shouldn't have a problem...what if we do? School starts in less than 3 weeks...something needs to be done about this process, its causing so much headaches, stress and for what??? It doesn't need to be this complicated people, it just doesn't!Q!!! My L.O seems sympathetic but everything is by email while he enjoys working from home in his florida home, we are in Wisconsin and so is the broker office. Any words,suggestions that I can use to approach this without pissing them off and just telling me its not approved? Seems so close to just bail, but I too am losing sleep, money and help with moving from friends if this doesnt get done soon. Homeless doesnt matter to U/W, but maybe it should especially if it can be proved. No family to live with/no friends to help either...so what does a single mom do now? Any recommendations would help............please

    ReplyDelete
  132. At this point you have too much invested to give up. Hang in there. Give that Loan Officer a Phone Call and insist that he call the lender for status. Have him call you back with the facts. He has no control of the underwriters but he can get the status.

    Good Luck.

    ReplyDelete
  133. Thanks everyone for sharing. I am definitely going to lower my expectations, and make a major change in my plans. I'm so glad I found this blog before signing anything.

    ReplyDelete
  134. My wife and I are in the same boat as a lot of you. USDA loan has been in underwriting for a little over a month. Our extension runs out on Sept. 28th, and I really don't think the sellers will sign another one. My loan officer is worthless, we have had to change the closing date 4 times because he, "got pressured into setting a date". No one told him he had to keep pushing it back a week at a time! He could have set it for a couple weeks. Now he won't even give us a date, and won't give me any sort of updates on the loan status. I am at a point where I will be fine if the deal falls through. It is worth losing the $2k just to be done with this stressful experience.

    ReplyDelete
  135. Excellent material, Regards.

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