Average Underwriting Timeline

[Anonymous]

Hello All,

I have read many posts over the past few weeks. Our file is finally in underwriting! I have seen many people say their file was in underwriting for a day or two and some even stated weeks. Anyone have a good estimate on an FHA loan underwriting process? Fingers crossed!!

Thanks!

[Anonymous]

From what I can tell, there is a significant difference from when your file is submitted to underwriting and went it actually goes to the underwriter. It can take weeks it seems for the file to actually get to the underwriter, but once that happens, it's usually only a matter of days.

The best comment I've received so far: "Your mileage may vary"

[Anonymous]

Thanks for the comment. Ya, that is the idea that I am gathering from several of the posts thus far. I believe the mortgage company I am working with only has one underwriter (Its a fairly small company). I have already submitted all documentation (bank statements, W2'S, Credit Inquiry explanation, etc). We will see how long it actually takes. Settlement is schedule on May 10th.

[MonkeyMan17]

I believe it goes to "preliminary" underwriting where all the provided info is correlated, verifications done ectera. Then a list of qualifiers is sent back to LO such as final funds verifications, updating credit reports, just anything the UW wants more info on. When all this is done then it gets sent back to UW for "final" approval.

I had a hard time understanding what was taken so long myself. First we had "pre-approval" before we put in a contract. Then we got "loan" approval dependent on appraisal, then I had to verify with third paryt verification credit card info that lender said had not updated in 4 months (funny it was updated for me every month when I checked), had to do another employment update verification at present employer and sign verification of employment contract of future employer (where I'm moving). Finally everything was sent back to underwriter that she asked for on Friday and we got green light to close on Monday afternoon.

Hope that timeline helps

just fyi Suntrust (thru Fa Credo) pulled my credit report 3 times, 1st time when I applied online (December), 2nd time when they sent us loan dcoumentation and I returned all signed forms (January) and 3rd when I asked for pre-approval letter to make offer (February). And still had to do third party verification with Fa Credo of 2 credit cards and an open line of credit (stands for First American Credco and they do the credit pulls for mortgage companies) verifying no late payments, balances, etc.

[Anonymous]

On my FHA Jumbo loan UW for me took three days. Submitted everything to LO before looking for a house. Found a house and put a bid in on it. Once the bid was accepted he asked me to update some info and from the time the bid was accepted until the time I had a mortgage commitment was 10 days. Five of those days were dealing with contract issues, two days waiting for the appraisal, and once the appraisal was completed we had a decision three days later. 

Overall a pretty quick process! 

[Anonymous]

I am SO frustrated.  We submitted all of our papers on Dec 12th and were told we would have an answer at the latest by Dec 21.  It is now Dec 23 and still nothing.  I asked our broker and he basically said nothing other than when he knows something we will know.

Seriously?  How can it take THIS long just to find out what's going on???  This is for a new construction home to be build - there won't be a closing for almost a year!

[Booner72]

The UW got our file on a Monday and we closed Thursday, got the keys on a Friday.

[JM-AM]

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@Anonymous wrote:

I am SO frustrated.  We submitted all of our papers on Dec 12th and were told we would have an answer at the latest by Dec 21.  It is now Dec 23 and still nothing.  I asked our broker and he basically said nothing other than when he knows something we will know.

Seriously?  How can it take THIS long just to find out what's going on???  This is for a new construction home to be build - there won't be a closing for almost a year!

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While I know how impatient every one is when waiting on a pre-qualify and or pre-approval, and for the most part is justified, some times you have to understand other things that are going on.

For example; 

1. Some lenders, banking institutions, credit unions, and loan programs are being over worked with home loans with minimal staff. It just may take a little longer especially with holiday season. 

2. Some lenders, banking institutions, credit unions, and loan programs have certain criteria that needs to be met from builders. Some builders are not FHA, VA, USDA as examples, approved builders. Some builders have to submit paperwork for approval and requires additional time.

3. Some lenders, banking institutions, credit unions, and loan programs have different requirements for pre-qualify and or pre-approval. While one program may approve you with a 620 score does not mean the other will. It takes a little time for it to be pieced together between all parties involved for approvals.

These are just a few reasons as to why things can be delayed. Have a little patience and enjoy the holiday season. Good things come to those who wait!