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I think I'm misunderstanding the process...

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Ravensfan2001
Established Contributor

I think I'm misunderstanding the process...

I satisfied the conditions of our loan approval and turned in what I thought was every required document. I paid all of our collections and submitted my payment receipts. But they needed confirmation that the accounts were fully satisfied, or have a zero balance. The credit agency contacted those creditors via fax or phone, and sometimes used conference call with me for verification. I spoke to them last week (credit agency) and they said all they needed was to verify 3 more accounts. It was done. I was happy.

 

Yesterday, I was told by my LO that 6 more accounts needed to be verified. She emailed me a copy of their report. All 6 were medical collections (with 3 CAs), and Equifax declined to give my LO information due to HIPAA rules. So today, I contacted the 3 CA's to get a confirmation sent to me. One CA said they could send a receipt. Well, I had a receipt, I need confirmation that no money is owed. I don't know if it was a mistake, but I authorized them to fax my LO the receipt. I didn't tell them what it was for, but I guess it's obvious. Anyway, no fax was received today.

 

I feel somewhat confident that the credit part will be taken care of. That was my major concern in satisfying the conditions.

 

Now, in an email between my agent and LO, my agent was asking for the loan status. My LO said we were waiting for the credit stuff, plus the VOR. After those are done, she will need to order mortgage insurance and then submit for final approval. I was under the impression that we were in the process of final approvel (well, until all these credit verification issues came up.). So after the credit part and VOR are done, it's going to be resubmitted to the underwriter for final approval? I guess it was my mistake for assuming that they were communicating with the underwriter. But this whole process has been soooooo stressful. I actually missed more than a week of work because my blood pressure was high and my doc related it to this stress.

 

When my LO says jump, I jump. I am doing absolutely everything I can do to make this happen. But it feels like I keep getting pushed down everytime I think we're moving forward. I can actually say at this point, I'm not really excited about the house anymore. I kinda want to crawl under a rock.

 

Two questions. Has anyone else felt like this? And what do you suggest I do right now?


Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 1 of 5
4 REPLIES 4
natesezgoblue
Valued Member

Re: I think I'm misunderstanding the process...

absolutely-we're finally wrapping up our 2 month process.  very stressful.

 

It sounds like your LO is still preparing docs to take the final underwriter.  For collections that need to be verified, it may help if you, your LO and Coll co have a 3 way call. 

 

 

Good Luck!!

Message 2 of 5
MortBankerRyan
New Member

Re: I think I'm misunderstanding the process...

Ravensfan,

 

I am sorry to hear what you are going through, unfortunately I am hearing this almost every day from my potential customers in process elsewhere.  One of the challenges I am seeing is that a lot of folks are working with brokers rather than direct lenders or banks, so there is a lot less control the LO has.  I am sure they are doing the best they can since they probably don't get paid until it closes, but sometimes it is just out of their control.

 

I will share with you how some banks/lenders work so you and others have an idea on the steps involved.

 

1. Application (in person, over the phone or over the internet)

2. Application documents sent to customer with list of needed items

3. Processing (this is when the payoff's, VOR's, VOE's, Title Work, Appraisals, etc are ordered) 

4. Underwriting (when the full file is sent to an underwriter, sometimes it takes days, other lenders weeks for the underwriter to get to the file)

5. Conditional Approval (If the processing step is done correctly this is generally just an item or two, if the company makes the underwriters point out simple needs it can be a large list)

6. Conditions cleared (the file is sent back to the UW with everything they needed

7. Clear to Close (file is done with an underwriter and sent to closing department to get docs to title company - generally 0-5 days depending on the lender)

8. Closing (Title company/Attorney office closes loan

9. Funding (generally same day for purchases and 3 days for refinances)

 

Good luck with your closing!

 

Ryan

 

Edited to remove link to website.  guiness56, myFICO Moderator.

Message 3 of 5
DallasLoanGuy
Super Contributor

Re: I think I'm misunderstanding the process...


@Ravensfan2001 wrote:

I

 

Two questions. Has anyone else felt like this? And what do you suggest I do right now?


unless i missed something... looks like you are in process of satisfying conditions.  once the processor has everything, they send to u/w to sign off.

 

all normal part of the process.

 

sounds like the lo just didn't explain the process well.

 

you are getting close.

 

good luck

 

Retired Lender
Message 4 of 5
Ravensfan2001
Established Contributor

Re: I think I'm misunderstanding the process...

Thank you all for your input.

I think I'm just really worn down from all this. Today, I found out that the credit part has now been satisfied. Not sure how, but if they're happy, I'll leave it alone. But, again, I was told that I only needed this and that, which I turned in. Hopefully, this is it. Now it's a waiting game again...

Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 5 of 5
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