Office of Loan Programs

Pre-Approval Renewals and Escrow Periods
Jay Valancy
August 2003

Every month, the Office of Loan Programs (OLP) fields many questions about the pre-approval process and escrow periods. This ongoing series records the most frequently asked questions and answers.

1. My pre-approval expired. How can I get a renewal?

OLP issues pre-approvals that are valid for 60 days. As the search for the best home for your family may take longer than that time, it may be necessary to obtain a pre-approval renewal.

In most cases, you will not have to complete or sign any forms to obtain a renewal; however, you will need to forward updated bank statements to OLP along with, if appropriate, documentation of any changes to your household income. Please allow a minimum of 24 hours for processing.. Once the updated information is reviewed, a new credit report will be ordered and, assuming there are no significant changes that impact the loan requested, a new certificate will be issued.

If you have any questions regarding this process, please contact either your Campus Housing Program Representative or the Office of Loan Programs.

2. I was recently pre-approved and would like to make an offer on a property. How long should the escrow period be?

The University will make every effort to approve and fund a loan within a 30-day escrow period, provided all property-related documentation (accepted contract and disclosures, property appraisal, and all property inspections) are received by our office in a timely manner. This would include any necessary updated verifications relating to the borrower’s income, assets or credit.

From time to time, situations beyond the control of the Office of Loan Programs may delay loan approval and/or funding. For example, in the current market situation, most property appraisers are requiring a turn-around time of 2-3 weeks. This could cause a delay in OLP issuing a final loan approval and preparing the loan documents for forwarding to escrow. There could also be delays in getting any other required inspections or documentation from the buyer.

Occasionally, OLP closes loans in less than 3 weeks; however, because of the potential delays that can arise with the appraisal or inspections, applicants should plan on obtaining at least a 30-day escrow period to ensure all contingencies are adequately met.

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