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Old 03-28-2008, 05:20 PM
 
275 posts, read 1,443,283 times
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So I've been having a time getting final approval for a loan. In the middle of the transaction, I had to switch lenders b/c of how slow they were. A week before we were due to close, I switched lenders.

Since the LO I was working with switched with me (he left his job with countrywide and took us with him) all of our information was forwarded and the mortgage company started working on our loan ASAP. They said they would be able to close this in 7 days.

We got pre approved, then got approved through thier system (whatever this system is), then we were told that the U/W signed off and we have full loan approval.

I called the our LO today b/c the builders are getting antzy because the loan package hasn't been submitted to the attorneys yet. They wanted to know the status of the loan. I was told that we have full loan approval but the lender has to sign off.

What does that mean? If the U/W already approved it, what else is left to do? I thought that was the final step. Do signing off on a loan mean they are waiting for additional paperwork or something? Since this is such a rushed process, I just got our Homeowner's Insurance today. I know that was one of things they were waiting on.

My LO assured us that everything was good as gold and that the lender was just waiting on proof of insurance. My LO is a great guy and all but he seems to jump the gun sort of speak. Just the other day he said if we wanted to we could close today. Hello, we don't even know if Monday is going to happen now.

So essentially my question is, do that sounds right? Do lenders use the term "sign off" as a means of making sure all documentation has been submitted? Or do signing off means that they are still trying to determine if we qualify base on the lender's standard?

I've asked these questions but my answer is never given back the way I asked it. For instance my question was....Question:I've heard that the underwriter has reviewed and signed off on the loan. Does that mean we are finish with the loan process. Answer: Yes, you have full loan approval but the lender needs to sign off.

So what do you experts think?
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Old 03-28-2008, 06:01 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,211,145 times
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This LO is incorrect. If the lenders do not have the insurance binder then it is not possible that the UW signed off on the conditions, becasue the binder would be one of those conditions. That being said, if you have a conditional approval (sounds like you are still trying to clear conditions) then once all of the conditions have been cleared then you will get your clear to close and docs will be drawn. I would not be worried about not being able to close. It sounds like it is just a matter of time.

Regarding your LO, is he young or possibly inexperienced? The reason I ask is that I see less seasoned LO's get themselves worked up doing things like this and promising things that they cannot deliver worrying that the deal will fall apart (not saying it will, just saying that less experienced LO's tend to be paranoid), where as a more seasoned LO would be able to be patient and keep you patient and confident as well. Not trying to pass judgement, or even saying that this is the case. Just curious, I suppose.
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Old 03-28-2008, 06:13 PM
 
275 posts, read 1,443,283 times
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Originally Posted by Daddys///M3 View Post
This LO is incorrect. If the lenders do not have the insurance binder then it is not possible that the UW signed off on the conditions, becasue the binder would be one of those conditions. That being said, if you have a conditional approval (sounds like you are still trying to clear conditions) then once all of the conditions have been cleared then you will get your clear to close and docs will be drawn. I would not be worried about not being able to close. It sounds like it is just a matter of time.

Regarding your LO, is he young or possibly inexperienced? The reason I ask is that I see less seasoned LO's get themselves worked up doing things like this and promising things that they cannot deliver worrying that the deal will fall apart (not saying it will, just saying that less experienced LO's tend to be paranoid), where as a more seasoned LO would be able to be patient and keep you patient and confident as well. Not trying to pass judgement, or even saying that this is the case. Just curious, I suppose.

Ok, ok, this makes more sense to me. So basically this is the last condition on the loan process as he said everything was fine. However, since they need the insurance binder to finalized the loan, the underwriter is still waiting on that. This must be the last and only condition as they haven't asked for anything else from us. So once the insurance binder has been incorporated into the loan, then we can get that "real" FINAL approval.

To answer your question, he's not a young guy and he "claims" to have many years of doing loans. I don't know if just don't know how to explain it properly or what. If he simply explained it the way you did, I would understand the process better. He's more focused with telling us "don't worry". I'm not worry, I just want to know what's going on. All he keeps saying is, "you guys have full loan approval". Well to me, when I hear full loan approval, I think that's it. What he should have said is, you guys have full loan approval with conditions. Once the conditions are met, then we are done.
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Old 03-28-2008, 09:47 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,211,145 times
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Quote:
Originally Posted by rettogo View Post
Ok, ok, this makes more sense to me. So basically this is the last condition on the loan process as he said everything was fine. However, since they need the insurance binder to finalized the loan, the underwriter is still waiting on that. This must be the last and only condition as they haven't asked for anything else from us. So once the insurance binder has been incorporated into the loan, then we can get that "real" FINAL approval.

To answer your question, he's not a young guy and he "claims" to have many years of doing loans. I don't know if just don't know how to explain it properly or what. If he simply explained it the way you did, I would understand the process better. He's more focused with telling us "don't worry". I'm not worry, I just want to know what's going on. All he keeps saying is, "you guys have full loan approval". Well to me, when I hear full loan approval, I think that's it. What he should have said is, you guys have full loan approval with conditions. Once the conditions are met, then we are done.
Actually, it should be broken down like this. Once the credit is run and the lender figures out what you can afford based on information that they are given, you are pre-qualified. Once that information is verified and your scenario is run through automated underwriting then you are pre-approved or have a credit approval. Once the actual file is submitted to an underwriter with a purchase contract and any and all addendums, as well as a preliminary title report and an appraisal, then the underwriter will give you conditional approval. Once your conditions are met the UW will give you a clear to close, and you can order docs. I personally never use the specific words "full loan approval", although a clear to close is basically the same as final approval I guess. The LO should be able to keep you informed on the status of the loan through these specific stages.

Also, once the final condition is submitted to the underwriter then the LO should be able to give you a pretty accurate timeline for docs to get to title, and to set up a signing appointment.
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Old 03-28-2008, 11:31 PM
 
Location: Nine Mile Falls/Spokane, WA
25 posts, read 129,900 times
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Daddys///M3 is right on the money. The only thign I would add is that you could ask you LO to show you the "approval."

Every loan reviewed by Underwriting has an "approval" or "committment letter" generated which includes EVERY condition which must be "cleared" in order for your loan to close.

There is no reason for the LO not to provide this to you and it would tell you what is really going on - although it should not have been necessary to go to these lenghts in the first place. Your LO should have been able to explain the proces to you as Daddys///M3 did.

Good luck and hope you move in soon!
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Old 03-29-2008, 07:16 AM
 
Location: NJ
1,415 posts, read 3,024,357 times
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Default clear to close

You also mentioned builders. maybe the co has not been done yet...that may be a requirement of the bank as well...there may be an issue with title. the builders attorney may not be ready.. is it new construction? there may be a final appraisal involved also.
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Old 03-29-2008, 07:25 AM
 
275 posts, read 1,443,283 times
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Quote:
Originally Posted by MMullin View Post
Daddys///M3 is right on the money. The only thign I would add is that you could ask you LO to show you the "approval."

Every loan reviewed by Underwriting has an "approval" or "committment letter" generated which includes EVERY condition which must be "cleared" in order for your loan to close.

There is no reason for the LO not to provide this to you and it would tell you what is really going on - although it should not have been necessary to go to these lenghts in the first place. Your LO should have been able to explain the proces to you as Daddys///M3 did.

Good luck and hope you move in soon!
Thanks for the encouragement. I agree, my LO isn't the greatest at explaining anything to me. Telling me I have Full Loan Approval is a bit decieving. I mean if the loan has been "officially" signed off from the lender, then it's not a full loan approval to me.

I know the seller recieved a loan commitment from our lender but I never saw it and no one bother to show it to me. They just told us what we needed to get to the office and we did. As I stated, this is a rushed loan approval so I don't know if certain steps are being skipped just so we can get this taken care of by Monday. I just started with this company last Monday so it hasn't been a week yet. In cases like this, would it be uncommon for an U/W to review the loan and infromally tell my mortgage broker that "yeah, this looks great. We can proceed with this loan as soon as we get etc".

As of yesterday (Friday) the lender hadn't signed off on the loan. My final walk through is at 11am and we close at 4:30 pm.

Now since I don't know what is all invovled in the closing process, how realistic is this. Obviously since lenders, brokers, etc don't work on the weekend, the lender won't get a chance to review the last document needed (homeowner's insurance) until Monday morning. Is it possible to get the clear to close from the lender on the same of closing and still be able to close that same day?

I dunno, it just don't seem possible to me. Then again, what do I know....apparently not much of anything!
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Old 03-29-2008, 07:27 AM
 
275 posts, read 1,443,283 times
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Quote:
Originally Posted by deb8997 View Post
You also mentioned builders. maybe the co has not been done yet...that may be a requirement of the bank as well...there may be an issue with title. the builders attorney may not be ready.. is it new construction? there may be a final appraisal involved also.
Yes this is new construction. What is co? I do know that the builders attorney is ready b/c they wanted to know if they could get the loan package over to thier office so things could run smoother and faster on Monday. We aleady had the appraisal done but I dont know if that's something other than the final appraisal either.
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Old 03-29-2008, 09:20 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,211,145 times
Reputation: 958
Quote:
Originally Posted by rettogo View Post
Thanks for the encouragement. I agree, my LO isn't the greatest at explaining anything to me. Telling me I have Full Loan Approval is a bit decieving. I mean if the loan has been "officially" signed off from the lender, then it's not a full loan approval to me.

I know the seller recieved a loan commitment from our lender but I never saw it and no one bother to show it to me. They just told us what we needed to get to the office and we did. As I stated, this is a rushed loan approval so I don't know if certain steps are being skipped just so we can get this taken care of by Monday. I just started with this company last Monday so it hasn't been a week yet. In cases like this, would it be uncommon for an U/W to review the loan and infromally tell my mortgage broker that "yeah, this looks great. We can proceed with this loan as soon as we get etc".

As of yesterday (Friday) the lender hadn't signed off on the loan. My final walk through is at 11am and we close at 4:30 pm.

Now since I don't know what is all invovled in the closing process, how realistic is this. Obviously since lenders, brokers, etc don't work on the weekend, the lender won't get a chance to review the last document needed (homeowner's insurance) until Monday morning. Is it possible to get the clear to close from the lender on the same of closing and still be able to close that same day?

I dunno, it just don't seem possible to me. Then again, what do I know....apparently not much of anything!
1. Not necessarily uncommon. I had a purchase deal that was killed by 2 different lenders. Complete file with an appraisal, preliminary title report, insurance binder, and purchase contract with all addendums. I took it to the third lender and we closed it in about 12 business days, straddling Christmas and New Years.

2. If you get your clear to close on Monday, it is possible that you can get docs over to title on Monday and even get them signed. The loan will not fund, however, until the next day at least and the wire may take another day to go out, so you wouldn't be funded and recorded until late Tuesday, first thing Wednesday. That being said, once you have signed you should be ok, even if it does take an extra day or two for the funds to record.
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Old 03-29-2008, 03:43 PM
 
Location: Cary, NC
1,036 posts, read 3,685,421 times
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On a slightly different view... sometimes insurance is NOT a condition to get a clear to close with an underwriter. Some lenders have the underwriter review all income, assets, credit, appraisal, etc and the UW signs off on that. Then the closing department actually reviews the insurance and final title work to give that "final signature" and release the documents to the attorney.

It seems that the LO is not explaining the process very carefully and it depends on that they meant by "lender signature" and that the "underwriter signed off". Daddys///M3 did a great job going through the process, but there are slight differences with some lenders that might explain the confusion. That is why its important that an LO use clear terms and explain the steps and not just industry lingo. Some do it on purpose to distract while others just get caught up and forget a homebuyer doesn't do this every day.

It is possible for you to get this "final signature", the documents to the title company and close on Monday... but as said it will be close and the funding/recording will likely not happen that day if it's set for 4:30. It all depends on the lender and the title company you use, some will prepare docs in a few hours while others want 48 hours to review them before closing.

Good luck... at least it looks like you are close to the finish line.
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