In this article, we will cover and discuss avoiding delays in getting conditional mortgage approval. There are ways of avoiding delays in getting a conditional mortgage approval and closing on time: Conditional mortgage approval is a loan commitment by the mortgage lender. A conditional mortgage approval means that the lender is ready to issue a clear to close and fund the mortgage as long as the borrower can meet all the conditions. Conditional mortgage approval is issued after the mortgage underwriter has reviewed the basic docs such as the following documents:
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- two years of tax returns
- two-year W-2s, sixty days of bank statements
- recent paycheck stubs, and other documents
What Do Underwriters Look For Issuing Conditional Loan Approval?
In order for a mortgage underwriter to issue a conditional mortgage approval, the underwriter needs to have thoroughly reviewed all mortgage loan documents. The underwriter needs to make sure the borrower meets all guidelines on the loan program. One of the biggest reasons for delays in the mortgage process is if the underwriter gets incomplete documents and/or paperwork that is not legible. If the underwriter does not get complete legible documents that are properly labeled, the conditional mortgage loan approval can be delayed.
How Long Does It Take To Get a Conditional Approval For a Mortgage?
The main reason for delays in getting a conditional mortgage approval by the underwriter is when the mortgage package has not been processed correctly and there is more than one missing document or document for a mortgage underwriter to make a decision. A mortgage underwriter normally issues a conditional mortgage approval no later than 3 days after the mortgage file has been submitted to underwriting.
How Long Does It Take Underwriter To Approve Conditions?
It can take as soon as a day for conditional mortgage approval. However, if the mortgage processor did not submit a complete mortgage loan application, the underwriter will kick back the loan file back to the loan processor. This is when delays in getting a conditional mortgage loan approval happen. For example, if a mortgage processor did not submit all pages of all documents, the mortgage underwriter may not have enough supporting documents to determine whether or not borrowers qualify.
What Causes Delay With Underwriting
Missing or incomplete mortgage documents is one of the main causes of delays in underwriting.
Importance Of Complete Documents With No Missing Pages. Every page, including blank pages of the following documents, needs to be provided:
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- bankruptcy documents
- divorce decree
- tax returns
- child support documents when they submitted to underwriting
Conditional Approval From Mortgage Underwriter
The underwriter cannot issue a conditional mortgage approval without completely reviewing every page of required documents. With missing or incomplete documents, the underwriter then either places the file in suspense or returns it back to the processor with notes stating the missing items. A mortgage loan application that is not processed correctly the first time around will not only delay a conditional mortgage approval but is often the cause of closing delays.
How Often Do Loans Get Denied After Getting A Conditional Mortgage Approval
Processing the mortgage loan package is the most important factor in the whole mortgage loan application process to avoid delays in getting a conditional mortgage approval. A sloppy processing job will be a nightmare. An incomplete loan package will be a headache throughout the loan process and not a way to avoid delays in getting a conditional mortgage approval. Sometimes it is best to take an extra few days to make sure that all necessary documents are gathered prior to submitting them to the mortgage underwriter. A mortgage file that has been processed by an experienced veteran mortgage processor can get conditional mortgage approval with little or no conditions.
There are steps to avoiding delays in getting conditional mortgage approval. Borrowers who get assigned a mortgage processor that requests detailed documents the minute submitting their signed applications will be in great hands. This is because the processor is making sure that nothing is missing. The mortgage processor’s job is to make sure all the documents that are provided are complete, legible, and labeled. Experienced mortgage processors will not submit a file to underwriting if there are missing documents. The goal of every processor is to get conditional loan approval from the underwriter with the least conditions possible.
This blog on delays in getting a conditional mortgage approval was updated on July 13th, 2022
