Underwriting worries!!

[Brandon Hoffman]

USDA is a different animal. It can be anywhere from 3 days to 3 weeks depending on the local office. Your lender should be able to give you a projection based on his experience with them.

[NJGOAT]

Originally Posted by WritingMama

Yes, I thought the point of the program was to provide families with an opportunity to purchase a home because they wouldn't have the opportunity with a conventional loan.

I hope everything goes smoothly from here on out! Our lease is up the end of the month and our apartment has been rented out. I know our broker has our tax returns, so I don't think we'll encounter the same hiccup (fingers crossed). And, the items the underwriter came back with (SS# verification and credit disclosure) didn't seem like anything strange or out of the ordinary.

The program really serves two purposes, one provide loans to people in rural areas who may not have any other recourse for a housing loan. Two, incentify people to move to more rural areas. In our case, it was amazing what sections of NJ they considered "rural".

Our hiccup was annoying, but mainly for the people we were buying the house from as it screwed up their closing on the other home. We ended up making it "right" financially during the deal but it was arduous.

Originally Posted by WritingMama

Do you know about how long your loan was in underwriting? Also, do you know how long it was at lender underwriting and then USDA underwriting? I'm curious about how long each should take.

We applied for the mortgage in January, got pre-approval/authorization, whichever is the "better" one, in a couple days. We had the house picked out and under contract in February with an agreed upon April 1st closing date. At that point we provided everything they asked for which I think included blood and hair sample as well as a complete genetic screening, lol, not really, but it felt like it. The appraisal and inspection were done before March and everything was reported as A-OK pending final review.

In the week leading up to closing is when I suspect they actually did the real underwriting work and they asked us to update a couple items, including the tax returns. The packet went to USDA ~3 days before closing and they approved it at which point it went back to the bank for final underwriting. This is when the SNAFU with the tax return happened and the bank had to re-do the underwriting and resubmit to USDA which took about a day or so to get resolved.

So, based on our experience, I would say you really won't have the final 100% everythings great, go close on your new house, approval until a day or two before closing and it most likely won't be sent to the USDA until a couple days before that point. From what I gather USDA turns them around pretty quick on their end for the guaranteed loans as the bank does all the work in their electronic system and as long as you are within guidelines your fine and if you weren't, you would know that by now.

[WritingMama]

Originally Posted by Brandon Hoffman

USDA is a different animal. It can be anywhere from 3 days to 3 weeks depending on the local office. Your lender should be able to give you a projection based on his experience with them.

Our mortgage broker estimated a week at Chase RD and a week at USDA for underwriting. He submitted everything Nov. 21 when the appraisal came in but I think things got held up a bit because of the holiday. Also, the water and furnace weren't on for the appraisal (it is a foreclosure that has been winterized), so the appraiser went back to the property yesterday to verify those things were functioning.

Really, I'm just hoping we'll close by Dec. 16. Hopefully that is an attainable date!

[WritingMama]

Update -
STILL in Chase underwriting. Had a hold up with my husband's employment yesterday and they needed a letter from his employer to verify his hours. Doesn't sound like we'll be closing Dec. 16 like I was hoping so it sounds like we'll be moving on Christmas.
Our broker doesn't seem to worry about us being denied for the mortgage, but I'm getting concerned as to why it's taking so long. He is now estimating RD underwriting will take 4 days instead of 2-3 and then the title company has a required 72 hour period after receiving the package before closing.
Our realtor told me this would be the "rip out your hair" phase and I'm definitely getting to that point.

[DMenscha]

Originally Posted by WritingMama

Update -

Our realtor told me this would be the "rip out your hair" phase and I'm definitely getting to that point.

I think we would all rather rip out the hair of any mortgage underwriter these days.

[WritingMama]

Another update!
Chase finished underwriting on Friday and the package was sent to USDA underwriting. Our broker said it should take around three days there, then the package will be sent to the title company. Sounds like we'll be closing the 19th or 20th

[WritingMama]

I almost should post this on a new thread, but I'm just going to keep this one going.
Another update from the broker today - we should now plan on and can schedule a closing date for 12/21 (the day we are planning to move because it is the only day that works out for my husband and I). So instead of having a day or two between closing and moving we're going to go through all the joy in one day.

Does anyone have any tips/suggestions on closing and moving the same day? We're moving from an apartment so we don't have to worry about a second closing. I know this isn't ideal, so please don't lecture me on scheduling everything the same day. Just looking for helpful suggestions so that I might have some hair left by Christmas.

Also, I was thinking about asking our agent to talk to the title company to see if they can make an exception to their required 72-hour period to look over the package once it's completed at RD underwriting. Is this asking too much? It would just be SO much easier to close on Tuesday and it's only one day earlier.

Any input is very appreciated.