When Your buying a house the first thing you need to do is assemble your team. Whether that be from a referral from your agent or people that you already deal with, you must do this task.
The problem is when one of those team members are a weak link. Whether it be your Real Estate Agent, your mortgage broker (bank) or Lawyer, or inspections.
The reason in many deals your bank or broker will kill a deal is that typically when you have a 5 day clause to get your mortgage approved by an underwriter, they want more time. If the other party will not give you that time, the deal is dead. This year I’ve had two deals killed by banks. They needed more time and the seller was not willing to do this, and neither would I.
A good mortgage broker or banks will first do a pre-approval to determine how much you can afford. Now this doesn’t mean that you are approved. Its just to get an idea. The next thing that needs to happen is that they need to collect all of your NOA, pay stubs, job letters and etc. The underwriter will ask for this. You also want to make sure they have this so you know exactly what you make and they can know what you can afford. You wouldn’t believe how many surprises comes up after. You might only make a certain amount in a bonus etc etc.
Once they have all of that, and your offer gets accepted, your deal should be looked at on the second day. Give them a day for leniency. By the third day you should know if you are approved or not. Anymore time than that, and it is too long. If they are too busy go to somebody else. They will kill your deal. Banks are notorious for this, but I’ve seen it happen with brokers as well.
Get a good broker who can do one credit check, and if one lender is taking too long, they can call the other one and they already have the credit check and do not have to do it again. If you go to a bank and do this, you are stuck there. If you move they have to do another check and this could lower your credit score further.