Why is it Taking so Long to Approve my Loan?

Many home buyers are often frustrated by the amount of time it requires to obtain their home mortgage. When you’re waiting to close on the home you’ve scrimped and saved to be able to buy a home it can be frustrating to be faced with one delay after another. So, what exactly is it that can cause a mortgage approval to take so long, especially in this day and age when everything is supposed to be computerized?

It is important to understand there are several phases of the underwriting, or approval, process of obtaining a mortgage. When a client initially walks into the office of a lender they may be able to acquire an instant approval based on preliminary information they provide on the spot. It is important to note; however, that this information has not been verified and such the approval is subject to verification of that information. For the final approval to take place the lender will need to gather additional information and verify it.

Supporting documentation will need to be supplied to the lender and then that information will need to be processed by the loan officer. After that, the loan application will need to be submitted to the underwriting department. From start to finish, the actual process can take anywhere from a month to a month and a half.

In addition to all of the information that must be gathered and verified by the lender, there are also other services which must be handled in order for the loan to reach the final approval process. These services typically include inspections, surveys and appraisals. The lender must know without a doubt that the property is worth at least the loan amount and that there are no major structural problems or issues with the property boundaries. Depending on the time frame of your local area, these services can also take awhile.

Home buyers should also understand that even though they are making the application with the lender the money obtained for their loan can come from a variety of sources. Applicants with fairly good credit may be able to receive a loan through such programs as Freddie Mac or Fanny Mae. In order for an approval to be obtained on such a loan; however, the lender will need to make sure the applicant meets all of the stipulations specified by that particular program. If you fail to meet one or more stipulations for Fanny Mae, for example, then the lender will need to try to find another source.

While the entire process can be quite frustrating, take heart in the fact that you can speed up the process by making sure you turn in whatever documentation the lender requests as quickly as possible. Try to be patient and remember that in the end, it is in the best interest of everyone for your loan to close on time.

 
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