The Loan Approval Process

Step 7 in Edy’s series The Escrow Process for Buyers is The Loan Approval.  

Your loan originator, whether a mortgage broker or someone who works for the bank you’re working with, will put together a complete file to submit to the underwriter.

Once the Inspection Contingency is waived and/or repairs or credits are agreed on, the ball is in the lender’s court, since they will be interacting with the Buyer to get all the documentation they need to send the loan to the underwriter for final approval.  Keep up with the lender as if they are not proactive you could miss the closing deadline!  This can be extended if acceptable to both parties, but there is always a risk that someone would object?!  If your closing date is important, be sure your lender knows it and is “on board” in a proactive, project management style to make it happen.  And don’t drag your feet getting them the documentations they request.  It’s a complex process made more so right now by all the recent fireworks, and underwriters are hard to please right now!  Every day counts.  Oh, and do realize on the other hand that a tight schedule involving movers, painters etc. may hit some roadblocks if the lender wants to extend the closing date due to approval delays etc.  If you are locked in to a schedule without total control of the process (and the Buyer does not have total control of the process at this stage) you might end up paying high storage or hotel costs due to an unavoidable delay.