CodeMark TV Episode 21
So now we’re talking about the underwriting process; last week we had week one, this week is week two. Week two is when you get your conditional approval, hopefully. Now I’m going to put a little side note on that.
There’s two types of ways that a loan is approved, or not approved. Usually it’s called “approved eligible,” and these are run on platforms with Fannie Mae and Freddie Mac. Fannie Mae runs everything under what is called DU which stands for “desktop underwriter.” On Freddie Mac, these are by the way the “loan gods,” the mortgage guys that make all the guidelines for all of your loans that you get approved or not. They run on a platform called “loan prospector” or “LP.”
Now if you’re approved, you’re going to get an “approved eligible.” If there’s anything kind of questionable it’s called “referred with caution” and if it’s just not good at all. It’s “ineligible.” But, that’s not going to happen to you, because you’re going to get approved. Why? Because you got all your stuff put together in week one, and then week two you get the conditional approval.
Now to give you an idea of your approval time frame, as the housing market and the timing of things start increasing (usually around spring and summer time) you’re going to find that turn times in underwriting slow down. But, I am going to say that in most cases, most underwriters are going to get a loan conditionally approved anywhere between 24 and 72 hours. 72 hours being on the latter part, typically when it’s the high season. So anywhere from a one-day approval up to a three-day approval.
Alright so next week we’re going to talk about week 3 – ordering third party items. Until then I’m Mark MacInerney President and CEO of Codemark Financial. You can catch me Friday live, lunch with Mark on Facebook Live, and you can catch me here all the time on CodemarkTV.