NEED HELP: The lender didn’t issue conditional approval

Discussion
1

I applied with lender and submitted all documents then the lender take a week and come back asking for more documents which I submitted yet they didn’t issue any conditional approval letter. Is that normal?

2

Yes. If the underwriter felt they didn’t have enough information to make an initial credit decision they may ask for more documents prior to conditional approval.

3

Shan said:
Yes. If the underwriter felt they didn’t have enough information to make an initial credit decision they may ask for more documents prior to conditional approval.

That make sense if this is a common practice

4

How long has it been since you submitted the additional documents? Underwriting can take a little while. Have you reached out to your loan officer?

5

Flynn said:
How long has it been since you submitted the additional documents? Underwriting can take a little while. Have you reached out to your loan officer?

I did and he said they submitted the file to the underwriter but I feel like at minimum the LO should issue conditional approval

6

@Finley
Underwriting issues conditional, not the LO.

7

Finley said:
@Finley
Underwriting issues conditional, not the LO.

But he didn’t issue me a letter with these conditions or at least the LO didn’t share it with me.

8

Yes, it’s normal, usually the documents are being asked by underwriter

9

Jory said:
Yes, it’s normal, usually the documents are being asked by underwriter

But shouldn’t the underwriter issue the conditional approval letter to ask about those documents?

10

Finley said:

Jory said:
Yes, it’s normal, usually the documents are being asked by underwriter

But shouldn’t the underwriter issue the conditional approval letter to ask about those documents?

Lo here. The underwriter could have suspended the file because those documents were missing. In which case you would not receive approval until the conditions were cleared. It is common for TBD apps to ask for more info if enough wasn’t provided.

11

@Peyton
Thanks for your answer. I just seeking help to understand what’s happening

12

Who is the lender? Contact your loan officer to ask for an expected timeline. Underwriting can take anywhere from a day to five days to issue a conditional approval depending on how backed up they are.

13

@Ben
I already submitted all the documents on Day 1 then after 5 days the underwriter asked for more documents which I submitted right away but the underwriter didn’t issue any conditional approval letter since I started.

14

If you went with the guy with the lowest rate? Absolutely, 100% normal.