Financing in San Diego>Question Details

Trulia San D…, Home Buyer in San Diego, CA

How long does it take to be approved for a loan?

Asked by Trulia San Diego, San Diego, CA Fri Oct 26, 2012

With approval rates dropping, does a lender take longer to consider the candidate now-a-days?

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The bottom line is that it depends on the lender. A traditional lender (Wells Fargo, B of A, Chase, etc) will take 24 to 48 hours to give a buyer a prequalification letter letting them know what they can afford. If they are good, they will start collecting what they need so when they enter a contract to purchase a home, they can meet the 17 day contingency period for loan approval. If they are average, there will be a mad scramble to meet the 17 days and will often require an extension, which sellers do not like.

The biggest trend in lending in our market is direct lending, of which we are fans. Direct lenders (Amerifirst, Guaranteed Rate, etc) will typically take 3 - 5 days and give a buyer a preapproval letter, which means they are approved for the loan and the rest is mechanics. As both listing and selling agents, we appreciate direct lenders because they are set up differently. Most every direct lender has the loan officers, loan processing and funding under the same roof. It allows for faster resolution of issues and streamlines the loan process. We had a direct lender close on an $895,000 purchase of one of our listings in 16 days. And one of the married couple was self employed. Our average closing rate with a direct lender is 24 days, where most of the traditional lenders are 30 to 45 days.
0 votes Thank Flag Link Sat Oct 27, 2012
Great question! 10 minutes for Pre-Approval, One hour with all requested documentation of this needs list for DU Approval and 4-5 days for Full Underwriting Loan Approval.

Approval rates are dropping from all the possible issues that can arise. For example, appraisal shortages, scores dropping, getting correct breakdown of VOE overtime, job loss, IRS tax return issues, IRS verification issues, Ammended tax returns, dispute notations near funding, old collections popping up at funding, not being pre-approved and then fixing credit issues that take 45 days in a 30 day escrow, not enough funds to close, sellers backing out, short sale going to trustee sale, appraisal reviews, inspection reports, Buyer backing out from changing their mind and to much more that I hear and read about...

It takes many years of experience to avoid those issues. I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. This step strengthens a file to qualify for better rates and some elbow room with fico score requirements.
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
0 votes Thank Flag Link Tue Nov 20, 2012
A key factor for a Lender to give you a loan approval is the experience that your mortgage broker or loan officer have. If he/she get all your documents and financial paperwork, it could take somewhere between four to five business days after the underwriting approval.

Best of Luck,

Maria Cipollone

Century 21 Tenace
0 votes Thank Flag Link Wed Nov 14, 2012
i have variety of wholesale lenders they do get the approval in two days, it make a difference how savvy the mortgage broker is, and his connections with the wholesale lenders industry!
Things are changing toward the professional mortgage broker directions!!!
0 votes Thank Flag Link Sun Nov 4, 2012
Lenders are certainly taking their time and putting consumers through the hoops. They seem to want increasing amounts of documentation. Some of it is also on the person applying for the loan. Do they have everything they need? Do they have to do taxes in order to provide necessary information, etc.

Everybody is different, but generally speaking, a week or two for initial pre-approval should be adequate. Getting loans funded, however, generally takes about 35 days.
0 votes Thank Flag Link Mon Oct 29, 2012
Usually 24 hours. If transaction is smooth. it takes as little as 21 days to close the transaction. Faster to work with a Broker/Direct Lender instead of a bank cos a lot of the mortgage officers work weekends.
0 votes Thank Flag Link Fri Oct 26, 2012
“We issue Pre Approvals within 24 hours after 1-2-3 have been completed.

” Alex L Martinez P 760.402.3472 | F 858.345.391
0 votes Thank Flag Link Fri Oct 26, 2012
Please see below from my preferred lender.

Becoming a Pre Approved Buyer is as easy as 1-2-3
1.        Application- You may complete at http:// or we can meet in person
2.        Authorization- I will email you the authorization forms required to get started
3.        Documentation- I will include list of documentation that will be required If you have any questions or concerns, please do not hesitate to call me.

I am available at your convenience Alex L Martinez P 760.402.3472 | F 858.345.391
0 votes Thank Flag Link Fri Oct 26, 2012
Most lenders can get a buyer preapproval of their credit and income in 2-3 days. When an offer is accepted the appraisal needs to be done. That typically is 7-12 days. If the HOA needs approval that may take 3-5 days but can be done parallel with the appraisal. There may be some updating of documentation.
Everything should be submitted for final underwriting and approved within 15-20 days from signing of the contract. Then it takes a couple of days for documents another 2 for funding and then the deal is closed. Typically a transaction should take 30 days unless there are some unforeseen circumstances. At least that is the way it works with the lenders that I use. They are on my website and you can check them out.

Local Help with Your Real Estate Needs

Jerry Heard
Your Broker
The San Diego Property Shop
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Fri Oct 26, 2012
A seasoned loan officer is able to qualify a candidate in as little as a day. There is much information that is needed to be able to give a solid pre qualification as well as a credit report pull that usually requires a minimal fee to be paid for by the person looking to be pre qualified. There are documents that are needed that determine your income for eligibility. As long as all of the information required is given in a timely manner there is no reason other than time that someone could not obtain a pre qualification quickly. I hope this helps.


Chris Boudreau, GRI, ABR, SFR
Certified Foreclosure and Short Sale Specialist Diego Key

Cell: (858) 736-5393

License # 01273956
0 votes Thank Flag Link Fri Oct 26, 2012
Depending on the lender the initial Underwritten approval should take no longer than 10 business days. The longest amount of time is the back and forth of getting the disclosure package signed and gathering and submitting the initial documents the Underwriter will need to approve the loan.

With rates at record lows some lenders are experiencing long Underwriting turn times, however a well staffed lender should not need more than 48 hours to underwrite a complete package.
0 votes Thank Flag Link Fri Oct 26, 2012
You should be able to get pre approved in a day or two as long as you communicate and get the documents to the lender in a timely fashion. If you need a referral or recommendation, let us know.
0 votes Thank Flag Link Fri Oct 26, 2012
No, I used to be a lender a few years ago, if you give a complete package it will be underwritten quicker than the ones that provide incomplete loan packages. Final underwritten approval does not come until the rate is locked and you have selected your property.

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
efax 619-270-2516
0 votes Thank Flag Link Fri Oct 26, 2012
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