How long does it normally take for an underwriter to write a home loan?

Home Forums Mortgage Loan How long does it normally take for an underwriter to write a home loan?

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  • #92497

    admin
    Participant

    We have been working on closing a deal on purchasing a home, but I have had some communication difficulties with the mortgage broker. We started the process on June 2 and set a June 30 closing date. The Real Estate broker called today and said the mortgage broker was just sending the paperwork to the underwriter today or tomorrow. Will we still be able to close in 8 days?

    #383709

    admin
    Keymaster

    i had the same problem. and didnt close on the date. but I had a very very nice mortagage company in my town. and he gave me the right % even though didnt close on the right date, he said because it was the bank’s fault and not mine. it was banked own.
    not sure if your guy is just as nice as mine was.

    #383710

    admin
    Keymaster

    It depends on all companies involved… the acuall work for the underwriter is about an hour time, then they send all the info back down the line. I would say you have a good chance of closeing soon.

    #383711

    admin
    Keymaster

    Yes,
    1.Talk to the person at the closing company.
    2. See if you can get a loan in 24 hours from another broker. They can do it fast, if you have all the paper work.
    3.hope you are paying 20% down and not paying pmi.
    3.Are you getting two loans 80-20.
    4. if you are a Vet, the GI bill is really great.
    5. Don’t stress out.
    6. What did the home inspector say?
    7. Get the 1 year insurance on the house if anything go’s wrong with anything, READ the policy or talk to friends about it.
    7. Do not stress out.

    #383712

    admin
    Keymaster

    An underwriter doesn’t actually “write” the loan. The underwriter is the associate that knows what the criteria for each loan program is front and back, and also verifies everything that banker and processor sent over. They look for fraud and mistakes. They even review the appraisal, title work and insurance.

    At this point your loan is not approved. Most underwriters will “stip” for items, such as an updated paycheck stub or another home comparable from the appraiser.

    The time it takes for the underwriter to work a file depends on the company and how much business they do. If the file is 100% complete and squeaky clean, you’ll be able to close 1-2 days after the underwriter is done with it. The odds are against this, though. If a loan is audited and there were mistakes on it, lenders usually hold the underwriter responsible as it is their job to catch these things.

    Speak with your real estate agent and prepare them for post-poning the closing. That way, everyone knows what’s going on and it doesn’t come down to the last minute…and don’t work with this mortgage broker again. They dropped the ball on this one.

    #383713

    admin
    Keymaster

    Possibly. As long as the underwiter is satisfied with all of the paperwork, and doesn’t have 20 packages ahead of yours, you should close on time.

    That said, I’ve purchased and sold a number of homes and the underwriters ALWAYS find something! Most of the time, it’s little things that are easy to clear — missing tax return or verification of income — just have a fax machine handy if they’re not local! Once in a while they come up with a biggie though that can even jeopardize the entire deal. I’ve had that happen too.

    From personal experience, it’s not unusual for the closing date to be pushed back a couple of times. The last property that I sold had it pushed 3 times but we actually closed on the first adjusted date. I received the closing docs by e-mail, printed them out and rushed over to the UPS store to get them notarized and shipped off with minutes to spare. That was a do-or-die deadline as I was leaving the country on business for 3 weeks the next morning and the buyer’s rate lock had 2 days left on it. They would not have qualified at the new rate, the deal was THAT tight!

    #383714

    admin
    Keymaster

    Underwriting takes 24-48 hours, there are some companys that take 72 hours. If it is at the end of the month, (when most underwriters are more busy) is because, that is when most LO’s (Loan Officers) are wanting their deals closed so they can get paid on it for the following month…than underwriting time will be in the 72 hrs – depends on the company, your broker can put pressure on the AE -(area rep) to put a rush on the deal…..If this is the initial underwriting, there are normally “stips” that need done. As long as the broker has the appraisal, your loan application, credit, survey, Alt-9 title (or full title from the title company), the purchase agreement – than it should be smooth sailing – but underwriters do sometimes request more information from you. As long as they have the 1 month pay stubs – 2 yrs tax informaion if you are going full doc – or 6 vs12 months bank statement’s that is also considered a full doc…stated deals, do not require income on a loan application, just a phone verification of your employment of which the underwriter does. Than once all the stipps are cleared, it goes to funding department, and that does not take long – 24-48 hrs, since it is a purchase they have to get the wire information from the title company, and fee sheets have to be filled out – that is the brokers processors job to get all that information to him, but he needs to stay in contact with his processor – hourly – on his deals, to make sure all is running smoothly. Hope I answered your question. All brokers have bosses over them – it is your right to ask for the persons name…and inquire as to what is happening to your loan. Good luck. WE http://www.mycharterwestmortgage.com

    #383715

    admin
    Keymaster

    It depends on if this for an initial approval or final Underwriting. I’m assuming this to be for final underwriting(ask your broker)Underwriting a loan only takes maybe an hour in itself. BUT… depends on back flow of company(maybe a day or so) and depends if the Underwriter requests additional information that the broker didn’t provide. If the broker, loan officer, appraiser, title company, or anyone else did something wrong, then it may take time for broker to fix it, depending on what is the problem. 8 days should be plenty enough to correct any problems(I’m not guarenteeing that company or anything// and title problems can be the worst).
    Contract Underwriter.

    #383716

    admin
    Keymaster

    My average loan closing from applicaton to close is around 12 days or less on purchases (sometimes longer in busy states like California). Sometimes the lender will need extra documentation on something that may extend it a few days to gather that documentation. Most lenders treat purchases priority over refinances due to contractual obligations and are usually faster than a refinance.

    #383717

    admin
    Keymaster

    You should be fine it usually take 48 house in underwritting unless something goes wrong or they need more paperwork. Than you have another 24 hours for doc processing than 24hours for title to get you in to sign and then funding. Some companies can fund prior to signing or the same day you will need to ask your LOAN PROCESSOR not your mortgage broker. Also you should have your agent help you with this part of it. You should definately be safe for closing this month, but you will need to continue to push the lender. Good Luck

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