T.hightower, Home Buyer in Kalamazoo County, MI

How long does it usually take to find out how much your approved for or even approved at all?Does it come by?

Asked by T.hightower, Kalamazoo County, MI Mon Jun 29, 2009

mail or do they call you.We have been wating 40 days,and when we called them they said we will let you know when we do.

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Normally you can get a pretty good idea with a short phone call with a lender to share your pertinent information and give permission to run your credit. A bank or broker will usually then input that information into an automated underwriting software program which could approve, deny, or refer you.

A DENY decision is pretty self explanatory...back to the drawing board

An APPROVE decision means you are most likely approved. From there the lender should ask you to provide paystubs, bank statements, W-2's etc to support the information provided over the phone.

A REFER decision means an actual underwriter would need to review a complete file (all income and asset information must be provided) to make a ruling on things. REFER usually means there are layers of risk to the file which must be throroughly explained to determine if there really is a risk in loaning you $$ or if there is enough strength in the file to offset the risk (called COMPENSATING FACTORS). Once you have provided documentation it's usually no more than 5-7 business days, worst case, to get an answer.

The last thing that could factor in is the property itself. If you have identified a property and signed a purchase agreement it could be possible that issues with the property are holding things up. In today's mortgage environment the property is just as important as the borrower's qualifications.

At the end of the day, I'd recommend speaking to another lender - someone local and reputable - to get a 2nd opinion. Because while there may be a perfectly valid excuse for delays the fact of the matter is that customer service in the mortgage industry is not what it once was and your loan officer should at least be able to explain to you the delays and some sort of reasoning behind them. At least it may give you some peace of mind.

Tony
0 votes Thank Flag Link Tue Jun 30, 2009
"T",

Just to ask, was this a mortgage broker, or a mortgage lender? This website explains the difference and many other things about protecting yourself

http://www.fdic.gov/consumers/loans/index.html

I suggest getting pre-approved by more than one company and comparing their good faith estimates. Keep in mind, things may change (for better or worse) when your information is sent to the underwriter.

I also suggest seeing if you qualify for any of the Rural Development or MSHDA loan programs.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Tue Jun 30, 2009
An hour over the phone. Short and sweet. The tough stuff may take longer, if you don't get a personal response back by the end of day or next day, get referred to another better broker. The folks I work with in Portland all give me this same sort of response to these questions.
0 votes Thank Flag Link Mon Jun 29, 2009
T Hightower

Man I am glad I am here!

Thats too long. Maybe they forgot about you! Call Linda at Michigan United Mortgage. http://mumloans.com/

She is money, not literally, but she works so hard for her clients. Bob may know some people in your area that you can rely on as well.

When you need an agent to help you buy, let some of your Trulia agents you see active on here compete for the position. After all we donate our time to help break down the confusion that is home buying.

Out of curiousity who is the lender you have met with, and where did you find them?

Best Wishes

Jeremy

TRULIA TOPGUN

http://www.google.com/profiles/myhomemichigan
Web Reference: http://myhomemichigan.com
0 votes Thank Flag Link Mon Jun 29, 2009
Bob answered it pretty well--it DOESN'T take 40 days. Most can let you know when in a few days maximum. If you have some challenges to getting financed, they should be able to give you some advice on what to do to get approved as well.
0 votes Thank Flag Link Mon Jun 29, 2009
good morning......i have done mortgages in michigan for over 14 years......if you have been waiting for 40 days so far.....i wouldn't expect a straight answer when you do get a response....first of all..by simply taking some personal information on the phone, and having a credit report in front of me, i can typically tell my client(s) right away how much they would qualify for.....that would be a pre-qualification....once you have applied and submitted your docs...the loan approval process goes rather quickly...your file is submitted into the computer and the findings are instantaneous...the only time delay could be if there is an issue on your file.....it is typically best to deal with that first.....if you would like a second opinion...i would be more than happy to assist you..best regards..bob mcclure- success mortgage partners- plymouth, michigan.....
0 votes Thank Flag Link Mon Jun 29, 2009
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