Those who have responded before me are all correct..don't waste another minute..MOVE ON!..
You should understand a prequalification is a worthless document when looking to purchase a home. It serves ONLY as a conversation starter betwenn you and the lender or mortgage broker.
When looking to PURCHASE a home, the document you will need is a PRE-APPROVAL. This document is supposed to mean the lender/broker has actually VERIFIED...something. Too often 'jellybean' lenders (Never Ever BAnk of Clearwater FL) will verify NOTHING until the property is under a purchase agreement THEN discover the buyer is not employed! That helps no one. Certainly not the seller who now must come up with a explaination why the first contract failed.Unfortuneately 'jellybean' is not a well perceived explaination in this context.
To hold the lender accountable for their promises, get a GFE as soon as possible. Any document presented not titled Good Faith Estimate is subject to change and can not be used to compare fees.
Local lenders, who have a history of investiong in the community through small business loans and home loans are a really good resource. Select an "A" or "B" graded lender near you. You will discover all the "Too big to care's" are "F" graded. Just enter the city or zip of you destination.
You gave permission for the lender to pull your credit as many times as they want when you signed their paperwork. My advice would be to e-mail them that you're no longer interested in working with them & move on.
If you don't have a Realtor, please contact me at 512-698-2214. If you have a Realtor, please ask her/him to recommend a different lender.
Nancy Bilunas, GRI, SFR, TAHS
Residential, Relocation & Equine Specialist
Keller Williams Realty
Now if you talking about, "Formal Loan Approval", this is when you have a open escrow, and your loan must be processed for an actual Underwriter Decision. This process should normally take about 17-20 days upon an acceptance of your offer.
In closing, I get at least 3-5 calls a week from borrowers whose lenders have fallen off the face of the earth with no more return phone calls etc. My only advise is, if the process starts out a ugly it's only end up ugly so you might want to contact another lender asap and double app. You've got nothing to loose, just be honest with the new Loan Officer and tell them upfront your concerns about the previous LO.
Best of Luck!
Here are a couple lenders that will get back to you quickly. You can do an online application, then they will get back to you with a pre-approval so you can start shopping for a home. Then, you will send in your pay stubs, etc.
If you're not working with a REALTOR, I'd love to help you! Let me know if you have any other questions.