Buying A Home
SCBride2007
member
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At what point do you find out if your mortgage was approved?
I'm curious-- first time homebuyer, and I'm so nervous about everything. We signed all of the application papers and such yesterday, and I am so nervous that it is not going to be approved.
We have decent credit scores, our debt to income ratio is fantastic, but H is starting a new job right as we are closing, so we got a letter about him starting his job. That's what I'm worried about the most. I'm worried that we are going to get a jerk underwriter and they are going to say no.
So, at what point do you find out if your mortgage was approved?
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Re: At what point do you find out if your mortgage was approved?
Unfortunately you're in for a bit of a wait. The mortgage commitment letter is what you want. You'll also need a final "clear to close" but you should get that as long as you don't incur any new debt or credit between now and closing and nothing crazy happens.
We got our commitment letter last Wednesday for our closing for this coming Wednesday. It took about three weeks to get it after applying.
Did the person you're working with give you a sense one way or the other of what you should expect? The bank wants your business and underwriters want to approve mortgages for qualified applicants, so don't worry that they're out to get you. If anything, it would be a general bank policy that would be a problem and not an individual underwriter.
This is helpful, thank you! I figured it would be a wait, and I don't so much mind the wait as much as I mind my uncertainty. But you are right, they do want our business, so hopefully that will be to our benefit.
Our loan person has been super helpful, but I completely forgot to ask him about the mortgage commitment letter timeline.
Most underwriters are not "jerks". We have a series of guidelines that have to be followed, or we run the risk of approving bad loans, and losing credit signing authority. There are federal guidelines, HUD guidelines, and bank guidelines that all must be followed to a T. While I beleive that some documentation requested can be a bit overzealous, if there is something not clear on a file, it is the underwriters job to have supporting documentation for anything that can not be clearly explained.
That said, I would NOT start a new job until after you close. In fact, I would not even give notice at the current job until after you close, since one of the questions asked over the phone, or clearly printed on the standardized Verification of Employment form asks about the probability of continued employment. Unless his company has a policy of not commenting on that, you run the risk of your lender finding out.
The guideline for ANY loan is for a new job, you must show a paystubs showing 30 days YTD earnings from your current employer. That doesn't mean 30 days on the job, but literally 30 days of pay.. which depending on the payscale, might mean 45-60 days on the job.
I was not saying that underwriters are jerks. I was saying that I am hoping I don't get an underwriter who is having a bad day and taking it out on our loan.
We have been upfront with our lender from the very beginning about my H's job situation. He is staying in the same field, but he is moving positions to a higher paid position. He will be starting the job on May 1st and we are supposed to close on May 4th. Our lender told us to get a letter stating all of that + salary, and that we should be fine. That's why I'm so nervous about all of this, because I don't feel like it will be that easy.
If this is the case, I wouldn't worry too much. If they thought there might be an issue I think they would have told you from the start. I was skeptical when our mortgage broker said that our approval would be fairly easy, but I think he's been right (fingers crossed that nothing happens at the 11th hour!).
Your loan officer is a sales person
It might work out if they don't verify your employment at closing, or if his current employer doesn't say he has given his resignation. Sometimes things fall through the crack like this. Sometimes they don't and borrowers can't close. The guideline I provided above is the same no matter what kind of loan you get, be it FHA, conventional, VA, USDA, etc. Really, its up to you to decide if you want to furnish the offer letter and potentially push your closing back.