How long should it take to get a preapproval?
Answers ( 20 )
I’m going through a similar process. I’m not overseas. The credit union is in another city, but still in the same state. I’ve submitted everything that was asked of me and my significant other, on Dec 3rd. We have submitted W2’s, 3 most recent paystubs, and tax returns for the past 2 yrs. DD214, SS and DL cards, bank statements, savings and retirement info both hers and mine. I contacted him the next day Dec 4th via email to confirm he had received all the necessary documents, and if he needed anything else, if there was something missing to let me know so I could send it to him. He told me over the phone the next day when I called him that everything was good to go. On Dec 14th I sent him an email stating “Any new info?” to check up on the status loan application, since I didn’t hear anything from him since the loan app. He responded:
“We are working on it. I will have some conditions for you Monday afternoon or Tuesday morning. ‘Hang in there!”
On Wed Dec 19th I sent another email “-Hey xxxxxxx, just getting back to you after what we talked about last week.” He did not get back to me Mon 17th or Tue 18th. It’s now Friday 21st, still with no response.
Is it because it is a Credit Union that they would take longer? First time home buyer. I haven’t been pushy, or at least I don’t feel as if I have been.
Wayne- Excellent response, as usual. When I start working with a REA that hasn’t worked with me before, I typically “parrot” as you stated.
I also state that my employer is a direct lender. ACC’s underwriters can issue a full approval, with property to be determined, within three days of application and primary supporting documents. The choice is theirs.
Eric- This is not a fault of the mortgage industry. Unfortunately, your “batting average” has not been so good selecting lenders. You know you do not need this type of customer service. I suggest you find another lending source. Best wishes.
Happy funding, Rudi
You would have better success if you had a referral to a loan officer directly and local might be even better. Purchase business is not typically ignored, and you need to know why the bank is dragging their feet. There are lenders on Zillow in your area/state on the Professional tab above so don’t stay in limbo.
As to the replies of doing loan approval on the phone. The pre approval process is more then asking a few questions on the phone. That process went away with sub prime loans and for good reason. In today’s mortgage environment “quick” can be an oxymoron. Agents would be well advised to communicate with the buyer’s lender before they select a closing date. Not all applicant’s loans can close in 30 days or less.
A pre approval should be with loan officer reviewing an acceptable credit report. W2’s, most recent paystub, and tax returns for the past 2 yrs. Many issues from tax returns can come up even if not self employed. An automated underwriting acceptable approval should be obtained.
An Agent or Seller that accepts an offer without this documentation being part of lenders pre approval letter is taking unnecessary risk.
As poster mentioned in passing he is “currently living overseas”, and wonders whether that could be an issue!
Plain vanilla buyers are far and few in between, and every application requires complete documentation. There are no short cuts to loan approvals.