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I have already submitted my mortgage app, but I haven't locked my rate yet. Am I supposed to do this quickly or should I wait until I at least hear something back from underwriting. The market is pretty stable so I don't think I will have to worry about the rate rising, but I am just worried about locking it too soon and then having something go wrong (i'm going FHA) with my application. By the time I close the rates may have started to go up by then. I applied last week and the LO asked me today when I want to lock. She said it would be a 60 day lock and my closing date is set for Dec 13th. Any advise is greatly appreciated! Thank You!
I dont think today would be a good day to lock. Rates have risen about .25% to .375% over the past month. Many people, myself included, believe rates will dip again around the Nov.3 FOMC policy statement. It is expected the Fed announces another Quantitative Easing program which should help rates move lower and hopefully back to the record lows of last month.
Agreed, wait for the announcement on Nov 3. The other thing you may want to find out from your lender is when you must lock by. Most will say that X amount of days before closing, if you haven't locked it will automatically lock at that day's rate.
As long as you don't think there will be any issues with underwriting, and you have all your documentation in order, since its a 60-day lock, and you are well within that window.
I am going to wait like another week to lock, until after the elections are over. When should I expect to hear anything back from underwriting? I submitted the application with all necessary docs last friday, but I haven't heard anything yet. It is my first home, so I am not fully aware of the process and I'm getting a little nervous. I gave them 2 years of taxes and w-2's, and two months bank statements, 1 month paystubs, 401-k statement, and proof of on-time rent payments for 1 year. I sthere anything else that they will need?
Hopefully your loan officer will be able to tell you if any other documentation is needed after looking at your paperwork and their experience with what underwriting requests. They should also be able to give you info on where things are at. If you have any large cash deposits in your accounts, you will need to have documentation to show where that money came from.
When should I expect to hear anything back from underwriting?
Answer: yes.
My answer doesn't make sense because there is no way anyone can give you the answer you seek. It depends upon who is reviewing your loan and where you applied for a loan. For example, do they wait for the appraisal to come in before the underwriter reviews the entire loan? Will they just run the computer approval (desktop underwriting) before the appraisal is received, or will the underwriter look at the file before the appraisal is received? Did you buy a short sale or foreclosure? Are you using the lender in the foreclosure? Are you using a big box bank? (This is important to determine work flow). And then finally, do you have confidence in your loan officer? I can usually provide an immediate warm and fuzzy, but if we are in "questionable areas," I have let my customers know it will be the underwriter's call. (The more "underwriter's call" issues I have on the file, I know it's going to be a rough ride).
When you say "last Friday," do you mean a week ago, the 22nd? Last week, 25th to 29th, was a very heavy closing week. (Whenever the last business day of the month falls on a Friday, all systems tend to be over-worked). Chances are, the processor was chasing their tail, trying to get their files to the closing table. Yes, they got your documents, but they may not have received the scrutiny they deserved. But this coming week, a lot will be done on the new files. Here is your warm and fuzzy: chances are your loan officer is experienced, only the strong survived this crash (exception: Banks do not necessarily have experienced personnel originating loans, it depends upon their structure. Does your loan officer also handle bank deposits? Banks will also promote the teller to originating loans. Chances are your loan officer has a website and your biggest clues will be there). So, rest easy if you have a loan officer that's been in the business for a while - we don't waste time in this very challenging market.
I do feel pretty comfortable with my loan officer. She always gets back to me quickly, I just don't want to bother her with too many questions. And i'm not really sure what questions I should be asking. We are using a small local bank that does their own underwriting. I gave them all the paperwork on the 22nd. She told me that they ordered the appraisal on Monday the 25th. It is FHA so she said they can't choose who they want to do the appraisal. I just want to make sure I have all my bases covered and this forum helps me a lot with finding out what questions I should ask and when.
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