Financing in Charlottesville>Question Details

Alicia.brons…, Home Buyer in Charlottesville, VA

We submitted our pre-approval application around July 12 and still nothing. Should it take this long?

Asked by Alicia.bronsberg, Charlottesville, VA Mon Aug 2, 2010

This is our first home and my husband is trying to use his VA entitlement.

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18
Hi Alicia,

Mr. Mendelson is correct, agents are interested in who you are working with because they would like to represent you should you not be, myself included. He is also correct in his other advice. It is wise to look at your monthly payment (including taxes and insurance) as often you can be qualified for an amount that would necessitate a payment in excess of a figure you are comfortable with. One word of caution, when ready to go shopping, select an agent to represent your interests in the transaction (a buyers agent) rather than using the agent listing the homes you wish to see. Remember, the listing agent is sworn to represent the best interest of his seller and so cannot effectively guide you through the negotiation process in the way that a third party could and since the brokerages each get paid a pre-determined amount by the seller rather than the buyer, there is no downside to involving an agent other than the listing agent. Glad to hear you are getting some satisfaction with Wachovia. Good luck and please call should you need assistance. 434 825 2468.

Rob
1 vote Thank Flag Link Tue Aug 3, 2010
>>If there is no contract there is usually no preapproval.

Really? Not where I come from. Pre-approval comes before anybody sees a home.
0 votes Thank Flag Link Wed Aug 15, 2012
Preapprovals are often content specific. Not always, but in most cases they are written for a particular amount or offer. Amounts vary from contract to contract. I have noticed lenders in our area prefer to see a contract, before writing the preapproval...but not always....I have had clients who needed their preapproval wording, amount and dates adjusted for each contract they were to service. But the truth is preapprovals are simply not strong enough if there is another contract coming in behind it, and with foreclosures it can happen.
Flag Wed Aug 15, 2012
Another thought on this question...The short of it is, go to the next lender. I have my clients work with more than one lender until the one who is the most active, and organized as well as has the best interest rate wins my clients trust. Preapprovals take much less time than approvals. Usually in a day or so I can get a preapproval for a client. If your paperwork is in order and handed to the mortgage broker in a timely fashion, you should have a preapproval within 48 hours or less. It really means very little to have a preapproval, and most contracts won't survive with just a preapproval. But its a starting point, Contracts are submitted with this type of document while the purchaser gathers the rest of the paperwork necessary for the loan. No preapproval means no go . COuld be a credit issue, or something that needs to be cleaned up in the report. or in the documentation, there are several reasons a lender does not wish to write a preapproval letter for a client. Sometimes minor credit repair is the answer.
0 votes Thank Flag Link Wed Aug 15, 2012
Submitted a pre-approval application to whom? If there is no contract there is usually no preapproval. In my experience, I ask for it to be ready, and I work with the clients lender to make sure it is ready when you are ready to submit a contract. They will have guidelines for your loan through the VA chosen lenders they work with. So if you are looking to purchase this summer, give me a call and I can walk you through it. I do work with first time home buyers, not any different than someone who is not first time, except the paperwork is more than ever before. It was a 75 plus page closing with a 203K Rennovation Loan..Love the loans, buts lots of paperwork. Gotta Love the powersaver loans from UVA Credit Union too.
0 votes Thank Flag Link Tue Aug 14, 2012
Mr. Peery raises an excellent point on which agent to use and whom the represent in the transaction. I did not conisder this as I am not an agent but you want someone on your side from start to finish. Good luck again and I hope we were all helpful on here.
0 votes Thank Flag Link Tue Aug 3, 2010
Alicia,

They are asking because they would like to work with you. Also because your agent might have become involved to try and get answers from the loan officer that was ignoring you. For what it's worth I think you are doing the order in the right way. Get pre qualified first then go find and agent and then go out and find a house. Otherwise you might find the dream house you can't afford just like you fear.. My last piece of advice is two fold, don't worry so much about what you qualify for amount wise. Try and figure out your preferred monthly payment including taxes, insurance and any HOA fees. Even in this tight lending market people can still usually qualify for more than they are comfortable paying. And I would also ask your new loan officer what his track record is with VA loans. You may qualify but part of the approval process with a VA loan is based on the home you select also. There are extra steps on a VA loan that the other loans don't have. Just make sure he or she knows this. They should but it's wise to ask alot of questions.
Good luck, hope this helps.
0 votes Thank Flag Link Tue Aug 3, 2010
Thanks for all of your help! We have switched lenders as of yesterday to our local Wachovia and the guy seems eager to help with the process. We are just not sure why everyone keeps asking who our agent is, we don't have one, we want to know how much we can afford before we go out and look at houses. I don't want to fall in love with a house I can't afford.
0 votes Thank Flag Link Tue Aug 3, 2010
If they aren't responsive now, can you be sure that they will close your loan on time? The difference you are seeing is common with credit unions. Your agent should be able to recommend a couple loan officers who are good and will be able to offer you a higher level of service. There is no magic behind an approval, once you have submitted all of your documents it should take not more than 1 day, and if it happens to be longer you should at least be given a level of communication to explain why.
Web Reference: http://www.nickhomeloan.com
0 votes Thank Flag Link Mon Aug 2, 2010
Hi Again,

Just to clarify, while there are many very professional and skilled lenders across the country who I am sure could help you and do so quickly, there is something to be said for working face to face with someone who keeps an office in your area, that is what I would consider a local lender. It is likely that your buying agent can recommend someone like this but I am happy to help if there is a need. info@cvillevahomes.com.

Rob
0 votes Thank Flag Link Mon Aug 2, 2010
Honestly,

It should only take 24-48 hours to know if a loan will work or not. Assuming you gave them what they need. But if you didn't then they should have simply told you that you were missing X.Y or Z. It's not that complicated. Let me know if I can be of service.
0 votes Thank Flag Link Mon Aug 2, 2010
Alicia,

It should not take this long. Do you have a loan officer assigned to the file? Navy Fed knows what they are doing, they may be backed up or there could be a problem. VA is generally straight forward. You either qualify or you don't. It's one reason I prefer to work VA loans. Navy Fed is 45-60 days right now but you should have heard back from a loan officer by now. I would ask to speak to a supervisor or consider switching lenders if you feel there is a problem.
0 votes Thank Flag Link Mon Aug 2, 2010
Hum... still should not take this long. If the pre-approval is so you are in a stronger position with writing a contract - great idea. I would suggest working with a local lender. They might be able to speed the process along.
Again happy to help.
Web Reference: http://www.cynthiaviejo.com
0 votes Thank Flag Link Mon Aug 2, 2010
Hello Alicia,
Unfortunatley, NFCU is not know for their prompt reply. Contact Jackie Inman at 1st Savings JINMAN@FirstSavings.com, 703-405-5068. Good luck.
0 votes Thank Flag Link Mon Aug 2, 2010
We submitted the pre-approval application to a lender, Navy Federal Credit Union to be exact. We have already started month-to-month with our apartment. I wasn't counting on it taking this long.
0 votes Thank Flag Link Mon Aug 2, 2010
Just to confirm what you have already been told, online lenders can be very problematic. I strongly suggest using a local lender and would be happy to recommend some that I have worked with successfully. You certainly do not want this sort of indifference once you are under contract.

Good Luck!

Rob Peery
Keller Williams Realty
0 votes Thank Flag Link Mon Aug 2, 2010
NO, if you send it to the lender. It should not take so long for you to get qualified. Please be very careful about online lenders. Always work with a known local bank or lender to get fast response. Good luck!
0 votes Thank Flag Link Mon Aug 2, 2010
No this should not take this long. Did you do the pre-approval with a local lender or an on-line lender? Happy to assist you if you need some help.

Cynthia VIejo
Montague Miller & C0.
http://www.cynthiaviejo.com
cynthia@cynthiaviejo.com
Web Reference: http://www.cynthiaviejo.com
0 votes Thank Flag Link Mon Aug 2, 2010
Alicia,

Sumbitted to whom, the lender or the listing agent? With rates this low things are getting backed up on the lending side. That's why I asked so I could provide you with better answers. VA loans are different also, a bit more work especially if the people involved are unfamilar with the process. Let me know if I can help.
Thanks,
0 votes Thank Flag Link Mon Aug 2, 2010
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