|
Finding
the perfect loan for your situation is something
that takes more than just looking at numbers.
There are many criteria that go into acquiring
a loan that many loan offices will not tell you
about. They may make it seem as if by meeting
a few criteria, you can receive 0 Down, or 1.6%
interest rates. What they dont tell you is that
your qualifying depends on a lot more than the
initial criteria they have requested.
The
lender will take an initial application. This
application will then be followed up with the
request of a lot of supplemental information;
this may include pay stubs, past W-2s, etc.
The
application is then packaged by a processor. This
processor will provide the package for initial
underwriting. Underwriting will take a closer
look at your application and may ask for things
like employment verification. The underwriter
will send back for initial underwriting conditions.
After
initial underwriting conditions are met, the package
will go back into final underwriting. Here more
conditions can be asked for.
As
you can see in this rough outline, there are many
other criteria required than just your FICA score
and salary.
|
|
The
average life of a loan should take somewhere between
30 and 45 days (remember that is only 22-36 business
days). They can be done as quickly as 5 days or
take as long as 3 months. The length of time will
depend on the type of loan and the type of lender
that you are working with.
Below
is a basic outline of the life of a loan. As you
can see, there are several areas were delays can
be caused and also several areas were time can
be shortened. Either way, even moving at a rapid
pace, it is easy to see how it can take a lender
29 business days (or 42 calendar days) to complete
a loan.
Day
1
Lender takes initial application and provides
a loan pre-qualification (please do not mistake
this for an approval).
Day
2
Lender gathers information from buyer for full
application
Day
3 (or when the buyer is able to obtain all of
the required documents)
The Processor will package the loan and send it
to underwriting. (This can take several days if
the loan officer is in a different city than the
underwriter)
Day
5 - Day 10
Package is reviewed by underwriting and initial
conditions are sent back to the loan officer.
Day
11 - Day 12
Loan officer contacts client to complete initial
conditions
Day
13 (or when the buyer is able to obtain all of
the required documents)
Processor will package all of the conditions and
send them to underwriting
Day
15 - Day 20
Package is reviewed by underwriting and final
conditions are sent back to the loan officer.
Day
21 - Day 22
Loan officer contacts client to complete final
conditions
Day
23 (or when the buyer is able to obtain all of
the required documents)
Processor will package all of the conditions and
send them to underwriting
Day
25
Underwriting will review the conditions and (HOPEFULLY)
provide docs to title.
Day
26
Docs will be signed by the buyer. If done early
enough these can be sent back to the lender the
same day.
Day
28
Underwriting will review the signed docs and (HOPEFULLY)
release funds.
Day
29
Title will send the docs to the county to be recorded.
YOUR DEAL IS DONE! |
