How long should the pre-qual/approval process take?

Sharon Lewis, "Sharon Lewis"
- (40 reviews)
Contributions:4238

Several great lenders that I work with in this area, including a Wells Fargo lender, email me and I can give you their names. Zillows 'good neighbor policy' does not allow us to post links here, although I see some have....
If you are working with a Realtor, they should be able to help you through this process with names of lenders they work with. I think your prqual is taking way too long, should be done in a few hours..

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June 08 2011

Flora.Li
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Contributions:21

The pre-qual/approval process can take somewhere between 1 hour to a few days. It depends on following:
---which lender are you choosing
---the relationship between the loan processor and the underwriter
---are you missing important docs like(2 years W2s, 30 days paystub.)
---if your loan is very complicated and need manager review

As for how the loan works, the steps are:

---you submit the loan application and supporting docs to agent

---the agent passes you docs to a loan processor, the processor inputs all of you information to Point(a software) and calcuate your DTI. Do the initial undewriting on your loan docs and send out disclosure forms.

---then your loan file will be uploaded to the lender's website to run DU(Fannie Mae system) or LP(Freddie Mac system).

---after your loan get DU or LP approval, you can lock the rate and processor will submit your loan along with other docs for underwriting

---underwriter will underwrite your loan and give out conditional approval or deny
---you'll order appraisal, clear up conditions
---your loan will be funded if everything goes well
Thank you and hope this helps

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June 07 2011

Bo Bromhal, "Bo Bromhal"
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Contributions:99

It sounds as if you have a Realtor already. I hope they've cautioned you that you're not buying any foreclosure or other bank sale and closing even by the end of July. As to the pre-qual/preapproval process, since you've provided more information to us, then it's not surprising to me it has taken this long at all. You are truly going through the pre-approval process, where ythe lender reviews ALL of your documentation, tax returns, bank statements, etc. A typical Wells Fargo Priority Pre-Approval does not quite take a week, but it is so much better than a "pre-qual letter". Good luck with the move!

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June 07 2011

Sharon Lewis, "Sharon Lewis"
- (40 reviews)
Contributions:4238

Congratulations on moving to this area, its wonderful here and you are going to find so much to do. If you need to know more about the Triangle you can go to several area websites like the local tv stations or radio stations, I like Kix102.9 and there will be lists of places to go. As far as living here, anyone one of us would be happy to help you with your search.
Good luck and Welcome!

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June 07 2011

Dan Marchiando, "Dan Marchiando"
- (1 review)
Contributions:22

Lenders can do a less formal prequalification process, whereby they crunch the numbers and issue their letter, or they can run your loan application with the property to be determined later (TBD) and get a conditional approval from an automated underwriting system like Fannie Mae's Destop Underwriter, or they can submit your loan application to a lender's underwriter for review. Not all lenders will look at loan applications before there is a property identified, or a contract signed, and some lenders will only do it if they aren't very busy. Most lenders aren't particularly busy right now. If your situation is particularly complicated, then the broker or lender may want to try to get an underwriter to look at it first. Press your loan officer for an answer, and give him a deadline to give you an answer up or down.

Regarding the GFE, under current rules, the GFE is only required to be given to the borrower (within 3 days of application) if the property has been identified, and there is a purchase contract.

Best wishes on your purchase,
Dan Marchiando

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June 06 2011

FinallyBuying
Contributions:47

We are going through Wells Fargo...we can not start looking for a home until we have a written pre-qual/approval as we are now looking at buying a forclosure through HUD, Fannie Mae or Freddie Mac and they all require pre-approval to bid which the lender know. We have a verbal prequal, but the broker needs paper. The lender and broker are both in the Raleigh area of NC and we are currently in Charleston SC (will be relocating due to job). Just waiting on the lender and getting more anxious since we just found out we will be moving by months end...really do not want to live in a hotel for too long!! The lender just called and said another 72 hours as he just submitted everything to the unerwriter. Thank you all..I think this has eased our minds a bit. Question, should we get numerous lender quotes? We read that mortgage lender credit pulls would not be a hard inquiry; however, as soon as Wells Fargo lender pulled it we received an alert that we had a hard credit inquiry and that is was from Wells Fargo. We are now afraid to do multiple as my husband has somehow gone over the amount for 12 months...

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June 06 2011

Rudi Hofmann, "LUXURY HOME LOANS CA"
- (3 reviews)
Contributions:7435

You should have received your pre-approval by now. A GFE is not required to be issued in 3 days if the subject Property Address and Signed Purchase Agreement is not provided by the borrower.

Happy funding, Rudi

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June 06 2011

Tom Menges, "tmenges"
- (26 reviews)
Contributions:223

A good and complete answer to your question will depend on your definition of pre-qualification/pre-approval. Many lenders will view a pre-qualification as a fairly informal matter designed to provide the Borrower/Realtor/Lender/Seller with a sense of well-being on the transaction and something that can just be done over the phone. A Pre-Approval is a more formal process that will typically require loan application, pulling the borrower's credit and a more extensive process. Lenders will generally feel more comfortable in providing a GFE for a specific property rather than something generic. Bearing in mind the regulation changes in terms of lender compliance for loan pre-approval, a good lender should have the process completed in 3 business days or less.

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June 06 2011

Cindy Poole, "cindypoole"
- (6 reviews)
Contributions:37

You can also apply on some of your local real estate companies' websites. You want to apply with a local mortgage officer with a good reputation, who you can sit down with face to face to help you through the process. Be careful of online lenders. There are horror stories where the funds just don't show up at closing. The mortgage companies can be tough to deal with these days, and you need someone you can trust to navigate the process for you.

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June 06 2011

Bryan Dunaway, "BryanDunaway"
- (4 reviews)
Contributions:31

Sounds like you are probably dealing with big bank. You should be able to get a basic quick pre-qualify in one day. Basic is based on your credit score,income and debt. Pre approval ready to make an offer on a home with confidence should not take more than a few days.