Financing in 01970>Question Details

Suburbndeath…, Home Buyer in 01970

I have been waiting a week to hear back from a bank about a mortgage loan..

Asked by Suburbndeathcamp, 01970 Mon Oct 12, 2009

They told me I would hear back by today and when I emailed the Mortgage Consultant she told me it hadn't been approved yet because the processors didn't even look at it yet.. she would call them tomorrow and let me know when to expect some information. My commitment date is October 24th and the closing date is October 29th.. I am getting nervous. Is this a normal period of time to wait?? She did pre-approve us twice on her own computer.

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Thanks to everyone for the help. We did get approved with Sovereign Bank and our closing is October 29th!! Someone really should teach people what they are doing.. especially with something this important. Thanks again!!
0 votes Thank Flag Link Thu Oct 15, 2009
The 41% guideline usually only applies when you are using conventional financing with less than 20% down (this is put in place by PMI companies not the lenders) or if you are using FHA 3.5% down financing but your credit scores are very low.

4.6% sounds like a lower than average rate. What you may be finding out the hard way is that just because a lender is offering the best rate, there is much more that goes into picking a lender than rate...primarily their ability to fund the loan as promised.

My advice to you is to set rate aside and speak to a reputable lender with a local presence. Get a referral from your agent or friends if you need to.

From the sounds of it things shouldn't be this difficult.
Best of luck
0 votes Thank Flag Link Thu Oct 15, 2009
Call me. (800) 678-6663 Ext 5154. You can fax or email me your info. Depending on that, approvals typically take up to 24 hrs and we can go Conventional w/ 20% down or take you FHA with 3.5% down (your discretion), 4.75 rate and possibly still close you by the 29th.
0 votes Thank Flag Link Mon Oct 12, 2009
I was denied by TDBank because my debt to income ratio is 46% and for the loan program I was placed in it had to be 41% when the guy thought it could be 43% and I have over a 20% down payment. He told me his professional opinion was to find a cheaper place to live.. without even trying to redeem himself by putting me in the proper loan program..
0 votes Thank Flag Link Mon Oct 12, 2009
They have to run your loan through an automative underwriting program, get the approval, then submit the loan to underwriting, then your initial disclosures are either emailed or mailed out, they wait from three days to seven business days until they can move on your loan, then there is the HVCC appraisal issue. They will order an appraisal through an appraisal management company so expect 1 to 2 weeks there, if there are no issues, then you should be about ready to close. I would say you are about a month away if they started immediately. Maybe FHA would be better fit for you if you already had one denial for conventional. I would ask for a timeline in writing to get a better understanding where you stand and maybe discuss your possible options with your loan officer. I think you may have some more choices to make. Let me know if this helps you. Have a great day.
0 votes Thank Flag Link Mon Oct 12, 2009
They told me they would have an answer within a week and we applied last Monday. We were there for 2 and a half hours getting everything photocopied (every check I have deposited in 2 months including personal checks) alot of photocopying of papers etc, just incase. We did get an extention on our commitment date with this bank ( a week) and an extension on the closing date due to another bank that denied us due to the inexperience of the person getting the loan for us. It is a 30 year fixed rate conventional loan that we are locked into at a rate of 4.6%.
0 votes Thank Flag Link Mon Oct 12, 2009
I don't know when your application/loan was started, however it is normal for a delay in underwriting turn times. It seems most banks went through their employments ranks about a year ago and fired several key positions to control overhead and costs, since then mortgage applications have gone up and it seems noone is revamping their manpower to service the existing new customers. So it becomes a waiting game. I have one bank that underwrites in 5 days, one that is more than 3 weeks out. It depends on the loan type, compliance issues (under new law there is a minimum of 3 to 7 days waiting period upon loan submission for federal disclosure procedure), appraisal issues, title issues, etc. I would request in writing when they will have your file underwriten, they should have a time line for you. I hope this helps...and good luck!
0 votes Thank Flag Link Mon Oct 12, 2009
What was the application date, was it a standard "conventional" loan or a government loan, and is it with a lender that guarantees you will close on time? If you do not have the ability to extend your closing date without penalty you must stay with your current lender and "lean on them." However, if time allows, get an extension and reapply with an individual that is more trustworthy.
0 votes Thank Flag Link Mon Oct 12, 2009
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