@BeBop wrote:
hey forum members
So I wanted to start this thread because I've heard some things about underwriting not completely sure if it's fact or fiction.
my background information:
my my closing date is May 23rd
my LO sent my file to underwriting roughly April 28th. Haven't heard anything back at all.
my conditions were 2 LOE regarding deposits into my accounts, almost 6 months of bank statements, signed 401k documentation and signed Tax return
A few questions I have:
-does less conditions make for an easier/quicker underwriting process?
-what happens if you get denied during underwriting? Do you lose everything? What should you do if you get denied?
-what happens if you haven't heard anything within 7-10days? Is that a bad sign if the process is taking longer than usual?
-is there an average time frame for the underwriting Process?
To answer your questions - I am not a LO or u/w, I am a Realtor that works with this everyday (for over 30 years)
It is not how many conditions you have that make a difference - it is the actual condition itself. There are conditions relate to the buyer/borrower and conditions that relate to the property. Most of the time there are few conditions and most are standard type.
The u/w is the one that makes the final decision on your loan. So if you are denied financing, then your sales contract will specify what happens when you are denied. In most cases you do not lose your EMD if you can't obtain financing under the contract terms. However, that is not ture 100% of the time so read your contract.
Now about the 7 to 10 day time frame. I have discovered that some LO's tell you that you are "in underwriting" and you aren't in underwriting at all. You are actually in processing. The processor is a very important person in your team at the lender. The processor collects and organizes all the required documents that the u/w needs to make the decision. This includes not only all your financials, but appraisals, VOE's, VOD's, tax transcripts, etc. A good processor makes this step seemless. A poor processor is a nightmare. Once your file is complete - it then goes to the u/w for a decision and it normally takes 3 business days (but it does vary by lender). So, if it has been truly 7 to 10 business days since your file was actually submitted to the u/w - that is a long time. It means that the file is either missing something or the u/w is backed up or the lenders system is not efficient or effective(Wells Fargo, BOA are in this camp).
