U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 04-24-2015, 07:37 AM
 
Location: Sugarland
13,230 posts, read 11,764,006 times
Reputation: 15253

Advertisements

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.
Quick reply to this message

 
Old 04-24-2015, 08:35 AM
 
4,542 posts, read 11,547,065 times
Reputation: 3063
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.
Quick reply to this message
 
Old 04-24-2015, 09:28 AM
 
Location: Sugarland
13,230 posts, read 11,764,006 times
Reputation: 15253
Quote:
Originally Posted by TimtheGuy View Post
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.
Quick reply to this message
 
Old 04-24-2015, 06:31 PM
 
Location: Southern California
4,350 posts, read 4,931,746 times
Reputation: 2129
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.
Quick reply to this message
 
Old 04-24-2015, 07:01 PM
 
1,049 posts, read 2,398,913 times
Reputation: 1366
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.
Quick reply to this message
 
Old 05-01-2015, 06:17 AM
 
736 posts, read 562,439 times
Reputation: 696
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.
Quick reply to this message
 
Old 05-01-2015, 07:31 AM
 
Location: Sugarland
13,230 posts, read 11,764,006 times
Reputation: 15253
Quote:
Originally Posted by frankrj View Post
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.
Quick reply to this message
 
Old 05-01-2015, 08:42 AM
 
Location: Austin
7,077 posts, read 16,893,484 times
Reputation: 9484
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.
Quick reply to this message
 
Old 05-01-2015, 08:47 AM
 
Location: Sugarland
13,230 posts, read 11,764,006 times
Reputation: 15253
Quote:
Originally Posted by FalconheadWest View Post
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."
Quick reply to this message
 
Old 05-07-2015, 05:05 PM
 
Location: Sugarland
13,230 posts, read 11,764,006 times
Reputation: 15253
As of today, I still haven't received the preapproval letter and I did follow up.

Last edited by Marka; 05-10-2015 at 02:01 AM..
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top