Delays In Getting A Conditional Mortgage Approval


Avoiding Delays In Getting A Conditional Mortgage Approval

Delays In Getting A Conditional Mortgage Approval
Gustan Cho Associates

Delays in getting a conditional mortgage approval:

A 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 loan to the borrower as long as the borrower can meet all the conditions.  A conditional mortgage approval is issued after the mortgage loan underwriter has reviewed the basic docs such as the borrowers two years tax returns, two year W-2s, sixty days bank statements, recent paycheck stubs, and other documents.  In order for a mortgage underwriter to issue a conditional mortgage approval, the underwriter needs to have most of the pertinent mortgage loan documents or the conditional mortgage loan approval can be delayed and many times in suspense.

Delays In Getting A Conditional Mortgage Approval

The main reason for delays in getting a conditional mortgage approval by the mortgage loan underwriter is when the mortgage package has not been processed correctly and there are more than one missing document or documents for a mortgage loan underwriter to make a decision.  A mortgage loan underwriter normally issues a conditional mortgage approval no later than 3 days after the mortgage file has been submitted to underwriting.  It can take as soon as a day for a conditional mortgage approval.  However, if the mortgage processor did not submit a complete mortgage loan application, the mortgage loan underwriter will kick back the mortgage loan file back to the mortgage loan processor and this is when delays in getting a conditional mortgage loan approval happen.  For example, if a mortgage loan processor did not submit bankruptcy documents, divorce decree, tax returns, child support documents when they submitted to underwriting, the mortgage underwriter may not have enough supporting documents to determine whether or not the mortgage loan applicant qualifies for a mortgage loan and cannot issue a conditional mortgage approval.  The mortgage underwriter then either places the file on 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 mortgage loan closing delays.

Mortgage Loan Processing And Delays In Getting A Conditional Mortgage Approval

Processing the mortgage loan package is the most important factor in the whole mortgage loan application process.  A sloppy processing job will be a nightmare and will be a headache throughout the mortgage loan approval process.  Sometimes it is best to take an extra few days to make sure that all necessary documents are gathered prior to submitting to the mortgage loan underwriter.  A mortgage file that has been processed by an experienced veteran mortgage processor can get a conditional mortgage approval with little or no conditions.  If you are a mortgage loan borrower and if you get a processor that asks you for detailed documents the minute you submit your signed mortgage loan application, you know you are in good hands because the processor is making sure that nothing is missing and is getting your file as complete as possible prior to submitting it to an underwriter.

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