Amygdala,

I know you are in escrow, so that is good. From what I understand from your statement below you are also using a down payment assistance program. I just wanted to let you know that the house did pass the housing bill today, which included the ban on seller contribution towards down payment. That means that organizations like AmeriDream and Nehemiah will be no more. Gifts from family members, pure non profit organizations and municipality bonds will still be available. There is still a small window to work with if you do need to use AmeriDream or Nehemiah, these programs will be in effect until September 30th 2008. Which means you need to close escrow prior to that date.

So in other words, you need to get on the underwriter to make sure you close on time. Also if the home you have purchased is not finished yet, you will probably need to use bond programs which has income restrictions on them instead of AmeriDream or Nehemiah. If you have any more questions about this, please don't hesitate to ask. Have a great day.

I meant July, as in the seventh month. Jeez, the waiting is obviously affecting me...

Amygdala, if I submitted my paperwork on o8/o7/07 and then had called my loan officer next month on the 16th, which was two days ago, I .... ahhhh ..... ummmm .... yes, I would be concerned about my approval too ....

But you should not be overly stressed, the T's & I's now a days must be doted by two first, and then checked again by three more minions before they ever hit the big daddy underwriters desk; oh, and he's in Cancun until the 25th.... beep

Sound that you are using the in house lender, and probably you might not have representation. I am not a lender however I hear from a very good source that builders can't force buyers to use their in house lender, Did you sign any other papers , did your read them? A Realtor that represents you can negociated the incentives you are looking for and more. There are many new homes and re-sale homes, inventory is still high.

Hang in there. People are on vacation so work has slowed way down. I am only sorry that you did not have an agent represent you, he/she could have pushed them along. In my experience, Builder's lenders take the longest.
Catherine
Realty Executives

FHA can take longer, but 3 wks in uw is not acceptable, even if they are doing it manually. Have you locked your rate yet?

It looks like you are using the builder's lender, most builders will "require" you to use their lender, but if you place an offer and tell them that you want to use your own lender they will let you do it in most cases - especially on this market. I don't know what kind of incentives you have, but in some cases you might still get a better deal with an outside lender. Just check around and tell both the lender and the builder that you plan to explore other lenders.

I have heard this a lot about buyers being pigeon holed into incentives by using the in house lender and delays involved with that process. I still do not understand why it is not a RESPA violation, but oh well.

Anyway, maybe she meant that 2 weeks was still needed to close. Right now, most banks are around a 2-3 turn time for conditions on submitted files, not 2 weeks. You are a strong buyer and should not have to be given such delays, plain and simple. It doesn't matter if you have no money and are doing a seller-paid Down Payment Assistance - that should not affect the timing of your file. FHA files should take no longer that 4-5 weeks to close, especially in your case.

I would tell the people at KHov that you refuse to have your back against the wall to either choose their mortgage company or you lose incentives. Tell them that you demand better service or you will go elsewhere for a mortgage (and a home).

Yes, there is a backlog of FHA files right now, but this is not the norm...

2 days ago was 7/17, but nevermind, 30 day closings are the norms these days

The time frame seems to long, something must be up. It could very well be your lender is not direct and is trying to do paperwork. From what you have stated your file should take 3 weeks max to get completed. Longer than that and someone has dropped the ball on your file. It does not sound like it is the two of you, it really sounds like the lender.

FHA loan approvals are backlogged right now, so underwriting could take a while. 3 weeks with paperwork at lender is absolutely normal, but not 3 weeks in underwriting alone. With the information you provided, you should have no problem qualifying for the loan though, so I wouldn't worry too much about that part. Good luck and I hope thing will start going smoother for you.

We are first time buyers. No bankruptcies, no foreclosures, no public record, no collections for either of us. We don't have much in cash reserves, but have lived at the same address for the past 4 1/2 years, time at current jobs are 5 years and 2 1/2 years. We are the epitome of STABLE! It is KHov's mortgage company. We could apply anywhere but if we don't finance through them, we lose a bunch of incentives. We don't have a down payment.
When I spoke to the loan officer, she didn't seem to want to offer any explanation as to why it was taking so long, like it was the norm...

No Offense, but Holy Crap!!! Two weeks for approval with a 697 score????? I would kill for having my FHA clients come in with a 697 credit score and a 44% DTI (43% is the FHA guideline but it goes higher all the time - about 55% max). To be honest, the should be an automated DU approval on this file (assuming no BK or Foreclosure) and I would be very frustrated if I were you. There is no reason for that.

Could it be that your loan officer is in the process of getting set up for FHA and maybe that is why the delay. That is utterly ridiculous. You should be closing in 2 weeks.

Now that I have vented, if you would like to get your file approved and moving forward, I would be glad to speak to you about it. I work for a national mortgage bank (the 7th largest originator of FHA loans nationally) and can get you an automated approval instantly and, if by chance, your file needs to be manually underwritten, it is 2 days - not 2 weeks.

Please call me anytime this weekend if you have questions. I'll be glad to talk to you about it.

Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

It is becoming more difficult to qualify for a loan. The lenders are taking more time to verify all information submitted by buyers! It may seem stressful however in the long run it will be beneficial.

If you need any help with another lender or have any questions, feel free to call or log on my site!

Lucinda

WOW that sounds like a long time, is this a smaller firm who is processing the paperwork? Maybe they state 2 weeks with anticipation complete earlier. I stay on top of it.
http://www.lynn911.com http://www.homes-for-sale-dallas.com