So you are wanting to buy a home and want a home loan, you have waddled through all the paperwork needed and you have given them to your loan officer. The list of documents needed was long but you made the copies and sent them in to complete all the requested documents. You now think that all you have to do is wait. But that is not true. There are several places that might need some more information from you. The underwriter might request other documentation from you.
Several Scenarios – Might be asked for a document about the tax preparers qualifications and want a written explanation of tax basis.
Another scenario – might have to deal with a flood certification issue and you will have to do some footwork on it.
Last Scenario – Home Owners Insurance. You will need to make sure that you have Home Owners Insurance and that you have the correct mortgagee clause.
Do not get frustrated, this is part of the process. It is never over until you have signed the documents. There might be times when additional information is needed, there may be times when information is needed from a 3rd party source. These all make the process drawn out as you wait for these companies to find/get/provide the information. In some cases they usually run about 5 to 7 days to respond.
It is the easiest thing to blame your lender for the delays. But consider this: How fast were you to respond to the additional documents that were needed? Did you write back and request why they needed these documents thus delaying the process or did you provide them rapidly, knowing that there are reasons why they asked? Did it have to go out for third party validation? How fast were they to respond? Did you fight with your lender when they said that it might have a delay in escrow? Or did you make it easier for them but getting an extension right away?
30 days is usually a good time frame to make a loan happen but there are circumstances that dictate that more time is needed. It does not mean that the loan is delayed or won’t go thru, it just means that it is taking longer than usual. Consider that if you are using a non conventional lender they have different documentation/Underwriting rules that need to be complied with.
Ask your lender how you can help them make the process as easiest as possible. Respond when they request something and keep an open mind about extending.
Jonathan Burdick 