How long does the underwriting process takefor a home loan? And what does it entail?

Asked by Ganttsrus, Suitland, MD Thu Sep 16, 2010

I am trying to see what is the typical time underwriting takes? I was submitted to underwriting yesterday, and just trying to see when I should expect to hear something back on my approval? I am hoping to hopefully hear something back by Friday, but not sure how long this process usually takes and what it entails....please also let me know what the process entails. Thanks!

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18
Leo, Home Buyer, Homestead, FL
Sun Nov 25, 2012
If you dont want to sit around and grow old, do not get a Bank Broker specially if is Bank to Bank new home Loans. I have been sitting around for about 6-month every day they come up with sometthing new or requesting something else. My paperwork is been sitting at the underwriters for about a month already. My realtor told me that I should have gone with a regular broker. I think he was right...
2 votes
ANDREW OLLICK, Agent, NAPLES, FL
Thu Sep 16, 2010
First of all, your mortgage broker should be the one answering these questions. that's why you're paying him/her.
To answer your questions, it all depends on the lender. If you went with a bank or bank branch they usually take a very long time to close ( 45-60 days and more). If you went with a mortgage broker, depending on which lender he/she put your through, the underwriting process can vary anywhere from 1 day to 1 week with the whole loan process taking 20-30 days. I once closed a loan ( from application to closing) in 4 days :)
The underwriting process involves the lender's underwriter reviewing the file, income docs, the application, verifying your loan officer's work, running your loan through an automated underwriting engine and then issuing a rejection or a conditional approval. Conditional approval is when your loan is approved pending delivery of satisfactory proof to the conditions that were issued by the underwriter.
At that point, you and your loan officer would work on getting that paperwork and once all the conditions are cleared you would receive clear-to-close (CTC)

Good Luck!

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
http://www.andrewollick.com/realestateblog
2 votes
Maurnice.hen…, Home Buyer, New York, NY
Tue Jun 27, 2017
I have a question. Is it a bad sign if it takes the underwriters 2 or 3 days to let you know if your loan is approved or not after you submit your conditions?
1 vote
alphonso hen…, Home Buyer, Nicholsville, Savannah, GA
Wed Mar 16, 2016
I sent my lender all information requested and was told 5 days ago that everything was with the underwriter so how long should this take
0 votes
, ,
Tue Sep 24, 2013
Were you able to close? Hopefully you are all set and a new homeowner!!
0 votes
Melissa Goss, , Center Moriches, NY
Tue Sep 24, 2013
Just had mine done on a conventional loan. They took so long it was disgusting. So anywhere from 1 week to 4 months. Like me. :) not happy though about how hideously long it took. Now I am waiting on a closing date. So my underwriting is FINALLY done.

If you did an FHA- it could take even longer.

---Keep in mind though, if you are just waiting for the mortgage commitment letter, you should have that in about a week. But that does NOT mean your underwriting is over. :(

Someone once told me that you are never truly 100% approved until you CLOSE.
0 votes
That last sentence is absolutely a fact.
Flag Wed Aug 20, 2014
you have no idea what you are talking about
Flag Mon Feb 24, 2014
Ganttsrus, Home Buyer, Suitland, MD
Tue Sep 21, 2010
Direct Lender. We received the approval with conditions on Monday morning. We are currently working on that now. I just asked another question in relation to this is you all would please chime in. Thanks!
0 votes
, ,
Fri Sep 17, 2010
Monday should be fine for a Friday closing. Are you working with a broker or direct lender?
0 votes
I was approved for a loan now waiting for the underwriter supposed to close on the june 30th how long would that take.
Flag Thu Jun 29, 2017
Ganttsrus, Home Buyer, Suitland, MD
Fri Sep 17, 2010
He said 3 days....it was submitted on Wednesday. I am waiting hoping for a decision today. I guess at the latest it would be Monday.
0 votes
, ,
Fri Sep 17, 2010
Waht does your loan officer say? He or she has to know how busy they are in UW. i mean it's a good sign but is it sitting in a stack waiting in line or is it open on someones desk? Once an UW actually looks at a file it should be same day approval. It may come back with conditional approval which means you and or the loan officer may need to do something to clear the condition. You need to talk to your loan officer if you are nervous or have doubts.
0 votes
The Roskelly…, Agent, Gambrills, MD
Thu Sep 16, 2010
If your loan officer and processor submit a complete package it should only take a few days in underwriting. Best of luck to you.
0 votes
Jerry R. Ray, , Portland, OR
Thu Sep 16, 2010
This is a question that will vary from lender to lender. It is ultimately up to your lender to communicate in detail what the process looks like to include timelines.

You will do both yourself and your lender a great service to provide all documentation requested in full and in a timely manner as this will result in how smoothly a loan goes through underwriting and how quickly the process is.

Your lender should also aticipate any potential hang ups (based on experience of course) your particular scenario may have and request documentation from you to thwart any potential delays.

In a nutshell, the underwriting process should be quick, painless to you and relatively easy (depending on your scenario).

Good Luck!
0 votes
, ,
Thu Sep 16, 2010
Thanks, hang in there it's almost over. I know it''s tough to worry and wonder. I do it times ten when things are in IUW. It would be great to let us know, you always kind of wonder how things work out and never really hear anything.
0 votes
Ganttsrus, Home Buyer, Suitland, MD
Thu Sep 16, 2010
Thanks...I will go ahead and ask him all those questions right now. Thanks for all your help in this grueling and impatient process. I will be sure to update when I get a response.
0 votes
, ,
Thu Sep 16, 2010
This should work I just tried it.
http://www.bankrate.com/finance/mortgages/when-should-you-lo…

You need to talk to your loan officer now. That isn't much time especially since most leners require a 48 hour time period from clear to close to actually producing documents. So you better be finished and have any conditions by Wed. Sometimes this rule gets bent but then the loan officer is basically asking for favors.
Pick up the phone and start asking questions now. The first being how long are they in UW, when did you submit the loan and when do you expect an approval. All this leads to so are we closing on Friday as planned? Be warned if the first questions don't add up though the 2nd <which will be yes of course you are closing Friday> isn't worth anything.
0 votes
, ,
Thu Sep 16, 2010
Sorry you asked whjat they do in UW.
The UW will review the entire file and approve loan based on the credit, income and assets.
They also review the appraisal, title work etc. Part of the slow down is UW needs a 4506T from Uncle Sam which can take a few days also. They may verify, jobs, money in the bank, rental history etc. If there is anything missing such as one page of a bank statement they will condtion for that. If too much is missing or outdated they will suspend the file and basically kick it back to the loan officer. That's usually bad because then you can lose your place in line and you have to start over. Every bank does it differently though but that covers most of what an UW does.
0 votes
, ,
Thu Sep 16, 2010
There is no real answer to this question. Each lender is different. Ask your loan officer how long the turn times are for UW. If you are using a broker ask him where he locked it. If you are working directly with a bank then just ask them how long they are in UW. i have a friend that works in a broker shop and one bank they work with is 30 days in UW. Take a look at this article http://www.bankrate.com/finance/mortgages/when-should-you-lo…
Also it sheds some light on what some of the larger banks are taking to appprove loans. It also depends on what type of loan you are getting, VA, FHA or conventional. Ask your loan officer if the loan is being written in house or sent out. It makes a HUGE difference in the speed. Plus he'll be impressed by your industry lingo. Seriously we are 2-3 days right now for most files in UW. Still closing loans in 30 days or less in most cases. No longer than 45 days from start to finish if the client and I are working on the same page. Hope this helps take a look at the article and let me know if you have any questions.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Sep 16, 2010
This question should really be addressed by your loan officer, consider asking him/her--generally the underwriting process time depends on the lender and it's current volume; one could expect an answer in one day to five days--the underwriter will verify income, check one's credit, review the appraisal, review title report, etc.
0 votes
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