Home Buying in 19126>Question Details

Chauncey  May, Other/Just Looking in Cheltenham, PA

Pre-approval Letter

Asked by Chauncey May, Cheltenham, PA Wed Apr 4, 2012

How long does it take to get a pre-approval letter? I ask because I have been waiting on my credit union for over two weeks now, when I inquire they tell me since the rates are low they are backed up with applications,

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With a regular mortgage lender a preapproval could take anywhere from a few minutes to next day. Two weeks would be way too long.

But credit unions are another animal. They often have a better rate than average for their members, but they don't have a lot of staff to handle lots of applications... so a couple of weeks, or more might not be that our of line.
0 votes Thank Flag Link Thu Apr 5, 2012
You're very welcome.
Flag Fri Apr 6, 2012
Thank you Alan, I was hoping that or something similar was the case, I can now stop stressing,also my lender called me and need a letter of explanation for two late payments on one of my credit cards,and for the derogatory accounts. She said that once she receives that it would be a day or two,so you know I sent in the response 10 minutes after she asked for it. Thanks again Alan.
Flag Thu Apr 5, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
When you actually go in and get pre-approved they should hand it to you right then. My guess is you didn’t do that, you called them and they asked you a bunch of questions and pulled your credit then said you are approved. BUNK!

If you didn’t have the LO review all of your support documents then all they are doing is guessing. I estimate that 30% of all the “buyers” in my market with pre-approval letters do not qualify for the loan they applied for. The National Association of Realtors published a report last year about the fall out ratio, it mirrored my position. Yes, I realize this isn’t the only reason the fall out is so high, but it is a contributing factor.

Your monetary risk in relying on an undocumented pre-approval letter is sizable. If you sell a home thinking you are approved or give your landlord notice and later find out you aren’t, WHAM. Or if you pay for an appraisal, inspections, good faith deposit, same thing.

What you are trying to do is so big and so important it should not be done haphazardly (Nice word inserted). Do it right, gather your docs, take off work for a couple of hours and apply in person. My application software populates an approval letter at time of application, theirs probably does also, if not they can type it up while you wait. I hope my comments keep you from losing thousands of dollars and protect you from lots of heartache. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky one home at a time.
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Thu Apr 5, 2012
Two weeks is much to long to wait for a pre-approval. Please call me so I can discuss your situtation and if you are a first time homebuyer I maybe able to get you a closing cost grant up to $3,000.00
0 votes Thank Flag Link Fri Apr 6, 2012
Hi:

1. You should have a pre approval in your email box within an hour after you hang up from you 20 minute phone call with the lender you have chosen for your pre approval. It literally takes 20 minutes and one phone call to do a pre approval.

2. Where is your real estate representative and why aren't they answering these questions for you and assisting you in every way possible?

3. You need to be assigned a pre approved LOAN APPLICATION NUMBER ASAP because on Monday the 9th of April the PMI = Private Mortgage Insurance / Rates change and you will pay almost twice as much if it is required on your loan.

4. Morgage Loan Interest Rates increased yesterday and you need to be "Locked in" RIGHT NOW.

5. You can get a pre approval from any lender. Why are you giving your business to an organization that cannot produce results??

If you need a mortgage broker recommendation email me at anabarlow@gmail.com and I will provide you with three options. I guarantee if you do the work with one of them on the phone and you are credit worthy enough to secure a loan, you will have a pre approval today.

Ana Barlow Coldwell Banker Preferred
anabarlow@gmail..com
0 votes Thank Flag Link Thu Apr 5, 2012
Hello Chaubcey

it takes 15 minutes.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
0 votes Thank Flag Link Thu Apr 5, 2012
What I am noticiing these days that the registered loan officers are the front desk ship the entire package to the underwriter for the preapproval, and yes as a result that takes time depending on the underwriters work load. Going directly to a licensed mortgage broker, depending on the nature of your work, and supplying the rquested documentations can be done in a day.
0 votes Thank Flag Link Wed Apr 4, 2012
If you have provided the lender the items that thye requested such as 2yrs W2's, 2 yrs tax returns, complete bank statements as well as paystubs, I don't see why it should take more than 24 hrs. Even with the big banks, BofA, Wells Fargo, it is very quick.

What happened to taking care of the customer??
If they aren't giving you the prompt service now when you are trying to give them your business?? How will they treat you when they do have it?

You may want to look elsewhere for financing, just my 2cents.
0 votes Thank Flag Link Wed Apr 4, 2012
I agree with you. I asked for my letter of approval and my lender said that he would send it to the seller with my offer. This sounds fishy to me.
Flag Mon Apr 11, 2016
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