Mortgage Appoval and underwritting process?

Question

I am working with a mortgage company. after pulling my credit scores I've given him all my paper work, (W-2's , paystubs. etc). He told me even though my credit isn't the best he still can get me 100% financed. He told me let me give it to the underwritters and we should get an approval tomorrow. that was yesterday. Today, I still have not received an approval and I am getting a little nervous. How long does an approval takes? some people tell me it takes only 24 hours, some say it takes weeks. What exactly does the underwriter do? (FYI: I did do my research on this company good reputation and I did not have to pay any up-front fees).

Answer 1

I'm a Mortgage Broker from Edmonton, Alberta and I can tell you from my experience it all depends on the lender and the time of year. Right now it's the peak buying period here and the turn around time for pre-approvals can be 48 hrs.

Answer 2

Sometimes, an approval can take up to a week. Underwriters are pain's in the asses, they may even come back with more conditions (other stuff they want, to verify assets, moneys, work, etc.). Don't get nervous too soon, it takes time, but if you have a good loan officer, they help a bit, staying on top of people at the bank's end, the processor, the lender, etc. My clients loan got kicked back from one back because of their underwriters, so the loan officer on the loan had to hustle and resubmit it to another bank that would do the loan. They had a few more conditions, it took about 5 days, and he was approved.

Answer 3

Unless you have great credit and a steady good paying job your not getting 100% financing. Approvals take between 2-7 days. And by the way, HE isnt giving it to an underwriter. He is giving to the lender, who is giving it to the underwriter. An underwriter is the person who makes sure everything on the loan app is legit. ie jobs, assets, etc.

Answer 4

I wouldnt worry too much about your loan. I would worry about your Loan Officer. Honesty and communication is the key to being a good loan officer and sounds like he is failing in both areas.

I am the host of a very successfully radio show about mortgages and real estate and I would highly recommend you listen to my show. We cover the entire process and we talk about questions you should be asking your Loan Officer. You can listen at www.daveandj.com and it is called The dave and J Show. You can also listen on iTunes. I would recommend that you listen to the first 3 episodes as we covered extensively the process you are going through right now. You can email us and we will answer any of your questions and give you advise. take care and Good Luck!

Answer 5

Since you are a first time home buyer and are probably not too familiar with mortgage fees, you may want to read a web page at http://www.mortgageawareness.com/mortgagebroker.html so you don't get ripped off with too high of broker fees. Mortgage brokers are ok to use, just watch and make sure they don't try to rake you on too high of fees on the closing of the loan.