Approval Process - Is this normal?

[Ktiz54]

It's been 3 weeks ago this weekend since I signed a new home contract and was "prequalfied" and 2 weeks ago since I sent all supporting docs (tax returns, w-2s, bank statements, etc) to the loan officer.  I keep wondering if any progress is being made on my application.  He said he would be mailing me a package of docs but I haven't received them.  I assume it will be the Good Faith Estimate of breakdowns, etc.  I called a week ago and all he would say is "things look fine" but things sure seem to be moving slow.  Is this normal timeframe?  The house could probably be finished in 2 weeks time if they wanted to speed it up and the sales agent keeps assuming we will close in July but I feel like nothing is really being done yet.  I haven't completed a real loan application or does the prequalification form the sales agent faxed the first day count?

I'm trying for a USDA loan so I know that step will also take some time so shouldn't things be speeding up more by now?  I am dealing with the builders finance company if that makes a difference in how things are done.

No one has actually told me if I am "preapproved" either.  Any advice appreciated!  Maybe I'm just worrying too much or just want things to move faster.

[StartingOver10]

Is this the builders lender you are working with for the mortgage or someone else?

It is very strange that you haven't signed an official application yet and it has been 3 weeks since contract. Normally there is a deadline to make appliction (3 to 5 days is typical).

Contact the lender right away. If you don't have an application tomorrow, I would be looking for another lender if it were me.

[Ktiz54]

Yes, it's the builders lender of a large nationwide builder.  The contract said I had 7 days to apply for the loan and on the 6th day since I hadn't heard from him, I emailed him and mentioned the 7 days and he shot me an email back telling me to send him the documents (w-2s, tax returns, paystubs and bank statements).  Apparently he did email the sales agent the same day and they discussed what interest rate I could get and what my payments would be and approximately how much I would owe at closing but he didn't officially give me any of that information. 

Another week went by and I heard nothing else from him so the sales agent again told him to call me and that's when he said "everything looked fine" and he would be mailing me a package of documents to sign.  Now it's been 8 days and I've received nothing.  So there is an official application that I would need to sign?

I just get the feeling that he is either swamped or just doesn't care but I'd like to have an official "preapproval" at least. 

He told me in one of those conversations that underwriting would take 30 days and USDA approval would take another 30 days.  Is he including this time the file has been sitting on his desk (3 weeks) - probably not??

[ezdriver]

Sounds like you have both an incompetent loan officer and builder site agent. The site agent [I am one BTW] is responsible to get that loan officer off his butt and responding to you in a timely manner. DOn't just sit back and wait ... it is your house after all. Get mad...light a fire under them if your eally care about the house you just ordered ... else just walk away.

[Ktiz54]

Okay, I'm contacting them both tomorrow morning and taking a more aggressive role in this.  I'm not normally an assertive person so it takes me out of my comfort zone but I'm also tired of not making any progress or getting any communication.  Thanks for reinforcing what I thought was appropriate!