Avoiding Delays In Getting A Conditional Mortgage Approval


This BLOG On Avoiding Delays In Getting A Conditional Mortgage Approval Was UPDATED And PUBLISHED On November 19th, 2020

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:

  • 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 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.

Delays In Getting A Conditional Mortgage ApprovalDelays In Getting A Conditional Mortgage Approval

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 documents 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
  • 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 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.

Importance Of Complete Documents With No Missing Pages

Every page, including blank pages of the following documents, needs to be provided:

  • bankruptcy documents
  • divorce decree
  • tax returns
  • child support documents¬†when they submitted to underwriting

The underwriter cannot issue a conditional mortgage approval:

  • The 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 closing delays.

Processing And Delays In Getting A Conditional Mortgage Approval

What is the significance of complete documents without missing pages

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
  • An incomplete loan package will be a headache throughout the 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 underwriter
  • A mortgage file that has been processed by an experienced veteran mortgage processor can get conditional mortgage approval with little or no conditions
  • Borrowers who get an assigned a mortgage processor that requests detailed documents the minute submitting their the signed application, they will be in great hands
  • This because the processor is making sure that nothing is missing

The mortgage processor’s job is to make sure all the documents that is provided is 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 a conditional loan approval from the underwriter with the least conditions possible.

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