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Old 05-02-2013, 08:21 AM
 
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We signed all the FHA loan disclosure forms a little over two weeks ago. The inspection went great, as did the appraisal. Every document requested of us has now been submitted. The loan processor told me our loan package is now complete and ready to be submitted to the underwriter for a decision.

Assuming the package is submitted to the underwriter today, how long until I receive an answer?
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Old 05-02-2013, 08:45 AM
 
Location: Plano, Texas
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could take anywhere from 24 hours to several weeks depending on what lender and how busy they are.
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Old 05-02-2013, 10:04 AM
 
Location: WA
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Some of the firms offering low rate loans just cannot handle the volume peaks at times... my loan was in underwriting for five weeks.
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Old 05-02-2013, 11:08 AM
 
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At this point in the month, I'm at two business days. As the month progresses, that number increases. Factor in the complexity of the file, and things compound.

I had one where the borrower owns 5 companies, wife had funky income due to pregnancy leave, owned 3 other homes, Subject Property was unique, we pretty much hit every stop on the Weird Loan Express. AND we went into Underwriting in the last week of the month.

That one took a full week.

So: Is your income complex? What bank are you using? The bigger the bank, the bigger the "funnel effect" of a huge commissioned sales force, forcing loans through a way-smaller-than-it-should-be salaried Operations staff.
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Old 05-02-2013, 11:47 AM
 
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Quote:
Originally Posted by Pfhtex View Post
At this point in the month, I'm at two business days. As the month progresses, that number increases. Factor in the complexity of the file, and things compound.

I had one where the borrower owns 5 companies, wife had funky income due to pregnancy leave, owned 3 other homes, Subject Property was unique, we pretty much hit every stop on the Weird Loan Express. AND we went into Underwriting in the last week of the month.

That one took a full week.

So: Is your income complex? What bank are you using? The bigger the bank, the bigger the "funnel effect" of a huge commissioned sales force, forcing loans through a way-smaller-than-it-should-be salaried Operations staff.
Income's not hugely complex, but not perfect: I quit my part-time job in 2009 to double up on my credits and graduate college sooner than I would have otherwise. Graduated with a BA in late 2010. Right out of school had no luck finding a job. At the same time my grandmother became ill and I took that opportunity to step in as her full-time caregiver for the following year and a half, until I was relieved of those responsiblites in mid-2012. Then, immediately found a full-time job, and have been there ever since (exactly 1 year, now). Our loan officer collected my W-2's from 2008 and 2009, which is farther back than he'd normally go, in order to show some consistency (as well as a copy of my diploma). He also had me write a letter to the underwriter explaining the year and a half caring for my grandmother. He's confident that these steps should quell any concerns about my period of unemployment after graduating.

My wife began her career a few years before me, so her income is much larger and more consistent. There's no problem there. She also works a second, part-time job, which she hasn't been at long enough to be counted towards our income, but is being considered as a compensating factor.

We're using a very small, local mortgage bank.

What do you think?
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Old 05-02-2013, 11:48 AM
 
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Any answer I'd offer would be an ill-informed wild guess.

I'd just ask my L.O. what their Turn Times are, and double that.
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Old 05-02-2013, 11:53 AM
 
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Originally Posted by Pfhtex View Post
Any answer I'd offer would be an ill-informed wild guess.

I'd just ask my L.O. what their Turn Times are, and double that.
In your experience, does our situation sound "complex" or fairly straight forward?
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Old 05-02-2013, 12:06 PM
 
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Not if your L.O. - who sounds pretty good - laid the situation out well, and has a strong processor. I recall something about issues with prior employer contact?

Anyway, if it's really in underwriting, those items should already have been solved.

I'd think you'd be out of underwriting by Tuedsay/Wednesday. But your processor saying it's going in "for a decision" is weird. They should have an automated approval, the loan does not sound like a Manual Underwrite. These days, files tend to not go into Underwriting until it's a full file with all questions answered and an Automated Approval included in the file. I'd ask your L.O. if your file is a Manual Underwrite.
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Old 05-02-2013, 01:41 PM
 
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Originally Posted by Pfhtex View Post
Not if your L.O. - who sounds pretty good - laid the situation out well, and has a strong processor. I recall something about issues with prior employer contact?

Anyway, if it's really in underwriting, those items should already have been solved.

I'd think you'd be out of underwriting by Tuedsay/Wednesday. But your processor saying it's going in "for a decision" is weird. They should have an automated approval, the loan does not sound like a Manual Underwrite. These days, files tend to not go into Underwriting until it's a full file with all questions answered and an Automated Approval included in the file. I'd ask your L.O. if your file is a Manual Underwrite.
What exactly is a Manual Underwrite?
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Old 05-02-2013, 02:00 PM
 
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Originally Posted by Pfhtex View Post
I recall something about issues with prior employer contact?
Yes, but it sounds like that's taken care of (I hope). The loan processor reached out to my former company's HR department. They will be putting into writing that they no longer have any employment records from that period.
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