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Old 05-26-2009, 07:40 PM
 
Location: Maine!
468 posts, read 1,098,198 times
Reputation: 314

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as i understand it "underwriting is the process of reviewing a loan package after the loan officer has prepared it and the home has been appraised. when underwriting is complete the lender should issue a commitment."

okay. . .but we went thru the whole process of submitting everything the lender asked for (minus our first born ) why after the appraisal is underwriting done will a lender issue a commitment?!? shouldn't the pre-approval have covered my loan package? it just seems our lender has been "underwriting" since we first applied for the loan. i'm a FTHB, so please forgive me on my ignorance. we finally got our appraisal done and we're scheduled to close in a couple of weeks. my lender called last friday and told us she needed more of the same things we've already submitted (pay stubs, bank statements). . .she acted pretty nonchalant about it, but i guess i'm worried that after going thru this process that we won't get the clear to close. . .am i just being a worry wart?
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Old 05-26-2009, 09:11 PM
 
Location: Texas
5,145 posts, read 3,978,173 times
Reputation: 2470
I wouldn't worry too much about it. With the glut of refinances in conjunction w/ the extreme scrutiny of a new mortgage applicant, especially a FTHB this doesn't sound out of the ordinary.

I've owned a few homes, and when I purchased my current one last month, I didn't get the clear to close until 14 days before our scheduled closing. If you're using a large lender (bank) then they on average have about 6-8 maybe 12 underwriters total to handle the entire work that their acct reps generate, which if even in BoA's case now-a-days still numbers in the hundreds just for the region including Dallas, Tx. Long story short, they are swamped and have a huge stack of files on their desks, and probably only get peeks at your file before trying to put out other fires.

If you're appraisal is done, and comes back clean, and you have met all of the other guidelines...AND NOTHING HAS CHANGED...then you shouldn't worry too much about it. I would however make sure your Loan Officer has you locked and registered with your lender though, just to be safe.

Hope this helps.

-Former Mortgage Banker
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Old 05-27-2009, 06:08 AM
 
Location: Wake Forest, NC
834 posts, read 2,383,097 times
Reputation: 615
These are the steps to getting approved.

1- Pre-approval. You verbally give LO information and they run credit. Run automated underwriting to get document requirements. You submit these documents along with signed application and disclosures.
2- Underwriting. Underwriter reviews application information and supporting documentation for accuracy. Underwriter issues a conditional approval. If those documents listed can be provided lender will issue clear to close/ final approval and fund loan. These may include updated income and asset documentation.
3- Final Approval. Documents listed on the conditional approval have been submitted to underwriting and reviewed. No additional documents are required so underwriter issues final approval/ clear to close.


Hope this clears up the steps to get from initial conversation to the closing table.
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Old 05-27-2009, 10:09 AM
 
Location: Maine!
468 posts, read 1,098,198 times
Reputation: 314
thanks for the info, txgolfer & dad2jules. its all beginning to make sense.
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Old 09-21-2010, 08:40 AM
 
3 posts, read 64,232 times
Reputation: 18
we have a conditional approval as well and our broker has sent everything but the haven't had an appraisal done, we wrote a check to him three weeks ago and he cashed it, but we haven't been contacted by an appraisal yet. He told us that he sent our paper work off a week ago and waiting on the okay for us to close by Oct. 15th. Can you help me understand this process? Because I thought an appraisal had to be done on the home first.
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Old 09-21-2010, 01:10 PM
 
139 posts, read 432,668 times
Reputation: 43
Yes... the process sucks right now. Banks are so backed up it isnt even funny. People need to understand that you are NEVER 100% safe until your loan actually funds. The approval you have been granted at this point is contingent on what is going to be called "conditions" - one of them being an appraisal. When everything is complete, you'll be given a "final" approval contingent on final submission of info (i.e. updated pay stubs).

I dont know many details on your package, but you need to email your broker and ask him where you are in the process and what you can expect from here on out.
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Old 09-21-2010, 04:22 PM
 
3 posts, read 64,232 times
Reputation: 18
Thanks for your help, we received a phone call from our broker today stating that his secretary has ordered the appraisal and we should be receiving a phone call from them within two business days and then I was told that the appraisers had a week from the day we receive the call to complete the inspection.
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Old 09-24-2010, 02:06 AM
 
Location: SF Bay Area
1,158 posts, read 887,567 times
Reputation: 730
I think the appraisal should be one of the very first things to get done after you get an accepted contract. How come it's so late?
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Old 09-24-2010, 09:55 AM
 
Location: Austin
4,449 posts, read 8,405,069 times
Reputation: 3593
Quote:
Originally Posted by dragontales View Post
I think the appraisal should be one of the very first things to get done after you get an accepted contract. How come it's so late?
You don't want to do the appraisal so quickly because the buyer still has many outs at the beginning in most states. In Texas, buyers get an "option period" to where they can back out for any reason they want. If you order the appraisal prior to the option period ending, and the buyer backs out, the buyer just lost the $400+ for the appraisal, and they'll have to pay the same fee again on another house.

It definitely should not be done towards the end, but it isn't something done right away.
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Old 09-24-2010, 02:42 PM
 
3 posts, read 64,232 times
Reputation: 18
Quote:
Originally Posted by FalconheadWest View Post
You don't want to do the appraisal so quickly because the buyer still has many outs at the beginning in most states. In Texas, buyers get an "option period" to where they can back out for any reason they want. If you order the appraisal prior to the option period ending, and the buyer backs out, the buyer just lost the $400+ for the appraisal, and they'll have to pay the same fee again on another house.

It definitely should not be done towards the end, but it isn't something done right away.
This is for you falconheadWest, we have an appraisal coming out on Friday to appraise the house for us and we received a truth in lending disclosure in the mail yesterday, but then our broker called again this morning to tell us that they needed more checks stubs because the stubs we sent in last week my husband didn't have overtime on them compared to when we first started the process. My husband works at a plant and every so often they have what's called an outage and he work 60 plus hrs a week and now they are back on a regular schedule and now they want to see overtime and it dosen't work like that. But in the last two weeks he was able to work about 8hrs over. What do you think they are going to do? Decrease the loan amount? Very worried!!!
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