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06-08-2011 07:03 AM
My Loan Officer and I have been collecting paid letters to 2 collections that were paid off months ago. The credit bureaus have not reported the balance of $0 for either one of them. Thus, my Loan Officer requested these documents be sent in and a Rapid Rescore be done.
My loan application has been in underwriting 4 weeks today, and I thought this was worry-some to have being done today. Is this typical to be done prior to "Clear to Close?".....or am I still sitting at the beginning of the process? I only ask this because my closing date has been extended 3 times now, and the seller said no more extensions. My closing date is the 17th of June.
Is there a typical sign that shows when a "Clear to Close" will be issued?
Im just very nervous and anxious!
06-08-2011 07:38 AM
I am no expert, but I would think that your credit should be one of the first things that needs to me in order before going underwriting.
Why is the LO trying to do this now, did your score drop during the underwriting process? I don’t think it is typical to have to do Rapid Rescore before getting a Clear to Close. Unless there was conditional approval form the underwriting stating your score needs to be higher.
06-08-2011 07:49 AM
When I initially applied, there was 1 unpaid collection of which the Loan Officer mentioned needed to be paid. I paid that immediately.
In addition, there was 1 other collection that was already paid prior to applying but the collection agency was stating a balance. The collections both sent me paid in full letters and thus is likely the reasoning over the rapid rescore. I would imagine they want a credit report to show the $0 balance for both collections.
A note as well is the Home Inspection has been completed, the Appraisal has been completed and value came back okay, and the Title was ordered on the 20th of May....so I am convinced that the process has been moving along over the past 4 weeks, but being that I am a first time homebuyer, I am getting nervous the more I have to wait. I work in a large office and other workers are going through the same process, yet all have closed on their house days ago....and im still waiting.
06-08-2011 08:05 AM
Did the LO give you a reason for why the underwriting is take so long. It might help if you post what type of loan it is, because from what I read some of the government loans could take a while in underwriting.
06-08-2011 08:13 AM
Its an FHA Loan that I am applying for. My loan officer has been clear on the documentation that the underwriter has been needing to verify but not so much on a status of the loan. I have asked for status to complete the underwriting process by the 10th and he said its condition is based on how quickly the rapid rescore can come back.....so really he is unable to give me a good status.
06-12-2011 02:06 AM
Hopefully your loan officer just requested a "Credit Supplement" instead of a "Rapid Rescore". A credit supplement is where the credit vendor (the company that they use to check your credit with) contacts the creditor listed on the credit report to confirm the balance, and then they update only the credit report the lender uses. A rapid rescore is where they update your credit at the bureau level, a brand new credit report is pulled and your score reflects the change (good or bad).
But the only clear sign you have a "Clear to Close" is the actual clear to close. The underwriter signs off the very last item, and then your loan is cleared to close.