New Member
Posts: 3
Registered: ‎08-03-2009
Waiting on Clearance to Close

Hi Everyone,

 

I've been using this board for references and advice anonymously for some time; this is my first post.  My husband and I began the mortgage process very quickly (found a house & applied for a loan almost simultaneously).  We applied for a FHA loan and had to go into manual underwriting to get approval.  When we received our commitment letter, it had a list of conditions and documents required.  We gathered all the information, wrote several explanatory letters, documented our accounts, etc and resubmitted back to underwriting.  Our appraisal has been completed.  I think the title stuff is complete.  We have insurance.

 

Our contract specifies a closing date of 8/6.  Our loan consultant has told us that loans don't come out of underwriting until the day before closing.  Our loan processor has told us she will let us know as soon as she hears from the underwriters.

 

Is it true that loans stay in underwriting until the day before closing; should we be scared?  Should I schedule things around the closing day or not?

 

Your experience & advice is much appreciated!

New Member
Posts: 2
Registered: ‎01-01-2009
Re: Waiting on Clearance to Close
Don't know if I'll be much help but here it goes: We did the same thing you all did, the 1st time it was submitted to the UWs, it came back in 5 days, now we just resubmitted our last documents and emailed them again last night, loan officers got them first thing this morning and says they will know something no later than 3 days, our closing is set for 08/18
New Contributor
Posts: 74
Registered: ‎05-28-2009
Re: Waiting on Clearance to Close

Your loan will get the clear to close once the underwriters clear everything. This is not contingent on the closing date.

 

 I was clear to close last Wednesday, but by contract doesn't have a closing date until 8/11.

 

Also, the closing date in the contract is just an estimate. For example, my contract say we will close "on or about 9am on 8/11." This is just a ballpark figure (I actually can't close at 9am at all!) Once the loan is clear to close you still need to finalize the date or find a different one that works for all of you. But if that's the day you want, and you submitted all the final conditions, I wouldn't be too worried.

Contributor
Posts: 77
Registered: ‎04-22-2007
Re: Waiting on Clearance to Close

I also went with an FHA loan and was scheduled to close last Friday which didn't happen.  This is the second property I have applied for and the first application was processed and came out of underwriting VERY quickly.  THe second time around I got a new underwriter and it is a completely different story.  It is the luck of the draw.  This woman keeps asking me for more and more documentation, I am going to completely lose my mind. And here I am on 8/3, submitted last bit of documentation this morning and still waiting for my loan to clear for closing.  It will be ok as long as you supply everything they ask for, but it just depends how long it takes them to review and reapprove it.  Good luck to you, I need it.

New Member
Posts: 4
Registered: ‎08-15-2008
Re: Waiting on Clearance to Close

My loan has been in underwriting for a good 2 1/2 weeks now and my loan officer keeps telling me they have "48 hours" to respond. NOT ONCE have the underwriters responded in that time frame. Additional info was needed and submitted to my loan officer on 7/20 AND 7/27 for different stuff and I was told "48 hours". The 2nd 48 hours would have been over 7/30 at the latest. As of 7/30, I am now being told I would know if I receive FINAL APPROVAL by 8/5/09. This is ALL being done through Bank of America Home Loans. I feel so sorry for my loan officer because the Underwriter(s) are not all the ball but it is getting OLD quick. Even though I am almost a month into this process (contract opened 7/15). I want to see if I can find a new lender to fund me ASAP. What do I do now?? EVERYTHING else is 100% done with my file (ie appraisal, home inspections, pre-lim etc).

 

690/651/691 Credit scores

Contributor
Posts: 77
Registered: ‎04-22-2007
Re: Waiting on Clearance to Close
I truly feel your pain and don't know what to tell you, I went with Wells Fargo and heard back immediately from my loan officer if the underwriter required more documentation, but it does take a few days beyond that to hear back from them.  My LO told me last Friday that I was clear to close and then I found out by the end of that day that I was NOT clear to close.  I have nearly NO debt, no deragatory info on my credit, and good income, I did not think it would be this difficult.  I guess hang tight and wait.  I am really close to heading to another bank if this doesn't work out by tomorrow.  If you don't have clarity as to why they can't clear you, then I say go to another bank but if you understand why things are getting held up, wait and ask for your loan officer to provide you with frequent updates.  Good luck
New Member
Posts: 2
Registered: ‎04-20-2009
Re: Waiting on Clearance to Close

My FHA mortgage for a REO home is in final underwriting and has been for over a week. Underwriting very slow, much documentation requested and the bank has ordered a 2nd appraisal of the home, even though the 1st appraisal came out significantly higher than the purchase price.

 

Missed initial closing date of 7-27, will also miss extended closing date of 8-4. Must ask for another extension and hope for the best. 

Regular Contributor
Posts: 177
Registered: ‎04-28-2008
Re: Waiting on Clearance to Close
just be prepared that it will always take longer than anyone will tell you. .  Even after i closed it still took me over a week to get my keys!
03/2009 - TU: 679 EQ: 670 EX: 670
7/2 - TU: 666 EX: 668 EQ: 673

"If at first you don't succeed...skydiving isn't for you."
Contributor
Posts: 77
Registered: ‎04-22-2007
Re: Waiting on Clearance to Close

It sure is crazy isn't it?  How can that be, you close, you own the house and you can't even get your keys?  My loan officer called finally and my loan is approved and in closing, I can close in the morning!  I am so excited this long road is almost over. Smiley Wink

 

 

New Member
Posts: 3
Registered: ‎08-03-2009
Re: Waiting on Clearance to Close

Ok, so now my lender has given it clearance to close (with no additional requested documents).  However, the loan is now with the govt audit team (it's FHA).  Anticipated closing date is still Thursday!  Does anyone have any experience with the govt audit team?

 

I'm starting to get excited, but not wanting to allow myself to get excited yet...