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.
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 â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
Best of Luck,
Century 21 Tenace
Things are changing toward the professional mortgage broker directions!!!
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.
Becoming a Pre Approved Buyer is as easy as 1-2-3
1. Â Â Â Â Â Â Application- You may complete at http:// http://www.warisanadvisors.com or we can meet in person
2. Â Â Â Â Â Â Authorization- I will email you the authorization forms required to get started
3. Â Â Â Â Â Â 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
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
The San Diego Property Shop
CA DRE # 00648687
Chris Boudreau, GRI, ABR, SFR
Certified Foreclosure and Short Sale Specialist
Facebook.com/San Diego Key
Cell: (858) 736-5393
License # 01273956
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.
Hector R. Gastelum
Realty Executives Dillon