How Long Does It Take To Clear Conditions
Once you have signed your mortgage application and the mortgage loan processor has processed your mortgage application, it then gets submitted to underwriting where a mortgage underwriter gets assigned to your file. In most cases, you will get a conditional mortgage loan approval. A conditional mortgage loan approval is by no way a guaranteed that your mortgage loan will get a clear to close. Once all the conditions have been met, you will get a clear to close. A conditional mortgage loan approval is a great sign that your mortgage will soon close and its the road to a clear to close. Once you get a conditional mortgage loan approval, you should work on clearing conditions as soon as possible. Clearing conditions is what delays a clear to close.
The mortgage loan underwriter will give you time to submit the conditions on the conditional loan approval. It is best that you get started as soon as possible in getting all the conditions to the mortgage loan processor so they can submit it to the mortgage loan underwriter. Mortgage loan processors normally make sure all of the conditions are complete prior to submitting the conditions to the underwriter. If the mortgage loan processor submits partial conditions, the whole mortgage loan package will get kicked back and the whole process will need to get restarted and will cause delays. For example, if all mortgage loan conditions have been collected and submitted to the mortgage loan underwriter, the underwriter will not drop whatever he or she is doing and sign off on a clear to close. Once all mortgage loan conditions have been submitted for a clear to close, it normally takes 24 to 48 hours or more for the underwriter to review the conditions and sign off on the clear to close. If any of the conditions is missing or the file is incomplete, it gets sent back to the mortgage loan processor and this will cause delays in getting a clear to close. This is why delays in clear to close happens and the real estate closing gets delays.
Delays With Conditions
There are times that delays happen in getting conditions, not from the mortgage loan borrower, but from the source itself. For example, if a mortgage loan borrower had multiple jobs in the past two years, we need to get verification of employment from all previous employers. Many previous employers are in no hurry in helping ex employees and many take their time in getting the proper verification of employment form signed and back to the mortgage loan processor. Other common delays are when their are errors on the mortgage loan borrower’s credit report and a credit supplement needs to get done, which can take up to a week and be a cause of a delay in a clear to close.
Delays In Clear To Close
There are cases where the mortgage loan underwriter submits all of the conditions to the mortgage loan underwriter and the underwriter checks off the conditions submitted but requests additional conditions on the mortgage file. This will definitely cause more delays in getting a clear to close and most likely delay the mortgage loan closing.