If there are any problems with the application, wouldn't they let you know?

Question

I'm still worried about my mortgage being approved. Wouldn't the contact who I met who pre-approved me or the processor know whether or not the loan would be accepted or not?

for those of you who havent' read my other questions, my loan is with the underwriter as of last Tuesday.

He also told me we should be closing "This week"....It makes me wonder

Answer 1

Call them and ask them point blank. There's no point in mincing words or being afraid of stepping on toes. You don't have to be confrontational, just ask them where it stands. There are roughly the following steps to the process:

1. Submission to underwriting.

2. Conditional Approval which lists the things which still have to be resolved before a final approval will be issued. (Insurance coverage, title work, employment verifications, debt-to-income ratio analysis, etc.)

3. Submission of those conditions to underwriting.

4. Underwriting's review and clearance of the conditions.

5. The file is sent to a closing department for the drawing up of documents and ordering of the wire.

6. Closing/signing of documents.

7. Funds disbursed and you get your keys.

So just ask them where you stand. There's nothing mystical about this process so tell them just to let you know the truth.

Best of luck!

Answer 2

In the mortgage industry, there are a million types of customers, ranging from the guy who wants updates every two hours and the guy who just wants to know where to sign. For this reason, a good lender would have asked you which method you prefer and acted accordingly.

Having said that, there are "hiccups" as another poster noted. Some are minor and some major. The minor ones are usually taken care of by the loan officer/processor. Some major ones will need your help to be resolved. Other hiccups are merely the loan officer "negotiating (ahem 'fighting') with the underwriter over lending guidelines. To answer your question, your loan officer and processor WILL/SHOULD know exactly where your loan stands at all times.

Give them a call and ask them what additional information they need from you, the seller, or the realtors in order to get the loan approved. If they say nothing, then ask what stage of underwriting it's in.

Additionally, if your mortgage is considered "non-prime" or "Alt-A" then guidelines in the industry are changing daily and sometimes hourly. Find out if this is the case with your application.

Answer 3

I hate underwriting. Everything is clicking along smoothly, then everything goes to underwriting, where a paper pusher has the final say. I envision them as little beady eyed geeks in glasses, volumes of books and binders in their office, calculator close at hand, pocket protector in place. This of course is probably stereotyping and woefully wrong, but it makes me feel better.

The loan officer or Realtor will let you know if you hit a snag. Don't fear, once the underwriters come back from their game of Dungeons and Dragons or their Star Trek convention, you're loan will get reviewed.

Answer 4

Truly in this market, you have a huge advantage to start dealing with someone else. Since the foreclosure rate is at an all time high, several underwriting centers are not as busy as usual. They have more time to look at your application. The loan officer handling your file should have that answer for you within a few days, if not I'd find someone else.

Answer 5

No. There are hiccups occasionally. They usually work themselves out. For that reason, I don't inform the client of everything. The summer is ending and people are taking vacations. If you don't hear anything on Monday, I would make some calls Monday night (it's been a week for crying out loud). The loan officers have a pretty good idea of whether or not you will get accepted or not, but it is not their job. They are the salesmen of the industry. Hang in there.

Answer 6

give it about 7- 14 days to be approved did'nt they tell you when it should have been approved ? if not they should have I hope you hear something soon I know we just bought a house it can be nerve wracking . good luck .