It takes weeks to get pre-approved for a mortgage?? (loan officer, credit, rate)

[Sweet Like Sugar]

I need a loan pre-approval letter to submit with my offers (not that I'm ready to make any just yet). I started off working with my personal bank a few years ago, and they sent me a pre-approval letter immediately after they pulled my credit. They already had access to my checking/savings account so they didn't request any other documents. I've recently decided to work with a different bank, they pulled my credit, and asked me to submit tax returns, bank statements, pay stubs, and W-2s. I sent them all that and all they gave me was a pre-qualification letter which I've read isn't persuasive when submitted with an offer. I asked what I needed to do to get a pre-approval letter and was given actual loan documents to sign. I was told they would need to be underwritten and the process would take weeks! Is that normal to go through all that just for a pre-approval letter? If I want to make any offers before they're done, I guess I'll have to ask my bank for a letter.

[TimtheGuy]

so why are you not using your personal bank. seems like they were very responsive.
btw-the new lender should have said it could take anywhere from a few days to a couple weeks. if they are any good that is.

[Sweet Like Sugar]

Originally Posted by TimtheGuy

so why are you not using your personal bank. seems like they were very responsive.
btw-the new lender should have said it could take anywhere from a few days to a couple weeks. if they are any good that is.

After doing some rate shopping, I decided to go with another bank. I also have some personal issues with the loan officer at my bank which led me to take my business elsewhere.

[thelopez2]

Is it normal, do you want to find out sooner rather than later about problems? Weeks seems excessive but we have entered buying season and companies haven't really increase their staff.

[Smooth23]

Once you have one pre-approval, dont get another. Find your house, submit an offer and get it accepted. That is when you go to your desired bank and tell them you've found this and this and you need to beat this rate. They'll still ask for all your documentations, but there is no reason to play the BS pre-approval game twice.

[frankrj]

Depending on the lender yes, it could take 5-7 business days. Tday, that is the going turn around times. If it is sooner, that particular lender may not have the best products or rates to offer. The mortgage history is notorious for not hiring enough staff and then laying off too much staff during slow times. The big banks do this a lot but I have found their service (Wells) to be good while others may have had a bad experience.
Is your loan a portfolio niche loan or a plain vanilla loan? Portfolio lending do tend to take longer because all the traditional banks don't offer it so the underwriter is overwhelmed with files on his/her desk.

[Sweet Like Sugar]

Originally Posted by frankrj

Depending on the lender yes, it could take 5-7 business days. Tday, that is the going turn around times. If it is sooner, that particular lender may not have the best products or rates to offer. The mortgage history is notorious for not hiring enough staff and then laying off too much staff during slow times. The big banks do this a lot but I have found their service (Wells) to be good while others may have had a bad experience.
Is your loan a portfolio niche loan or a plain vanilla loan? Portfolio lending do tend to take longer because all the traditional banks don't offer it so the underwriter is overwhelmed with files on his/her desk.

It's just a simple conventional loan. I was told it takes about 30 days to approve the loan, but I'm just surprised that even a pre-approval takes weeks.

[FalconheadWest]

To go to underwriting, that's for a full approval, not a pre-approval. You should be able to be pre-approved based on paper trails alone. Your bank statements, W2's, child support papers, alimony papers... etc... anything showing debts and incomes. On paper, if it looks good, that's a pre-approval, and should take a couple of hours to review. Sending it all to the underwriter is called "unwritten approval" and "conditional approval" as they might give you conditions of your approval. That's all beyond a "pre-approval" needed to submit with an offer.

[Sweet Like Sugar]

Originally Posted by FalconheadWest

To go to underwriting, that's for a full approval, not a pre-approval. You should be able to be pre-approved based on paper trails alone. Your bank statements, W2's, child support papers, alimony papers... etc... anything showing debts and incomes. On paper, if it looks good, that's a pre-approval, and should take a couple of hours to review. Sending it all to the underwriter is called "unwritten approval" and "conditional approval" as they might give you conditions of your approval. That's all beyond a "pre-approval" needed to submit with an offer.

Well, she's making things difficult then because all I wanted was a letter saying that I was "pre-approved" for a specified loan amount instead of "pre-qualified."

[Sweet Like Sugar]

As of today, I still haven't received the preapproval letter and I did follow up.