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Underwriting - How Long Is Too Long? |
By:
Connie Sanders |
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Underwriting - How Long Is Too Long?
Connie Sanders
I received the this question from K.S. who lives in Antelope, California. I get this question all the time. It is one of my pet peeves because there is absolutely no reason for it to be such a reality to so many people applying for a mortgage loan. 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!
The real problem of time can be an issue of "when it was REALLY submitted" for underwriting. It could also be that issues still need to be resolved. Your mortgage company or more likely than not, your loan officer needs to be totally up front with you. Ask to speak with a 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.
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.
I've been in the business for a long time and have pretty much seen it all. I know often times an incomplete loan package is submitted to underwriters. I know that there can be issues with appraisals or titles that can take time to correct. Sometimes a simple VOE will take longer than it should. Sometimes the borrower's file may be weak in some areas and the underwriter may ask for more documentation. They have the authority to do that.
The worse thing that happens is when the package just doesn't qualify under that specific lenders guidelines. Now the loan officer panics and starts sending it out to numerous other lenders while he literally prays that one of these lenders will approve it. The loan officer is hoping that perhaps their guidelines are not as tight. We have all been there. Every now and then it works, ... but at this point it is usually a lost cause. We find ourselves in a state of denial and just can't let it go because our heart is broken for the borrower and the seller.
If you are in the mortgage industry you know that all these scenarios are reality and unfortunately many times while all this is going on the borrower is left in the dark. This is not just wrong it is incomprehensible.
Many borrows don't understand all the steps we go through or the documentation process. However, it is their loan. They are paying a lot of money for this process and we owe it to them to keep them informed about any problems or issues that arise. The borrower is part of the process. 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 large amount of anxiety and stress.
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.
This is so simple that I can't help but get de-com-boober-ated when people just don't get it right.
Connie Sanders is an advocate for the homebuyer and knows that they have a need to understand http://www.fha-mortgageunderwriters.com/ FHA Mortgage Guidelines before they apply for a mortgage. Connie will answer questions through email. Reach her at: http://www.fha-mortgageunderwriters.com
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Article Source: http://www.statssheet.com/articles/article73838.html |
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