Waiting forever on my refinance loan approval - is this normal?

Cash-out refinances definitely trigger more scrutiny, no question. Lenders see them as riskier since you're pulling equity out, so they dig deeper into your financial history and ask for extra docs. Rate-and-term refis usually sail through quicker - less red tape and fewer hoops to jump through. Had a client recently who breezed through a rate-and-term in under three weeks, while another doing cash-out got stuck in paperwork limbo for nearly two months...typical lender caution at play.

"Cash-out refinances definitely trigger more scrutiny, no question. Lenders see them as riskier since you're pulling equity out..."

Interesting perspective, and I get why lenders might be cautious with cash-outs. But do you think it's always the cash-out itself causing delays, or could it sometimes be down to the lender's internal processes? I've seen some rate-and-term refis drag on way longer than expected too - had one last year that took nearly two months because the lender kept misplacing documents and asking for the same stuff repeatedly. Meanwhile, a cash-out refinance I did around the same time sailed through in about four weeks flat.

Maybe it depends more on the lender's efficiency or even the specific loan officer handling your file? Or perhaps certain lenders have stricter internal guidelines that slow things down regardless of refinance type. I've noticed smaller banks or credit unions sometimes move quicker because they're less bogged down by bureaucracy compared to bigger institutions.

Also curious if anyone's noticed differences based on property type or location? I've had residential properties breeze through refinancing, but commercial properties always seem to hit snags - extra appraisals, environmental checks, zoning verifications...the list goes on.

Anyway, just throwing it out there that maybe it's not always purely about cash-out vs. rate-and-term. Could be worth considering other factors at play too.

Yeah, I think you're onto something there. Last year I did a straightforward rate-and-term refinance, and it dragged on forever because the lender kept losing paperwork and asking me to resend stuff I'd already sent twice. Meanwhile, my brother did a cash-out around the same time with a local credit union, and he was done in under a month. Seems like lender efficiency and internal processes can make a bigger difference than the type of refinance itself...

That's interesting, but I'd say the type of refinance can still matter quite a bit. Cash-outs typically involve extra appraisal steps and underwriting checks, so even with a good lender, they can drag on longer than simpler refis. Maybe your brother just got lucky...?

I went through something similar last year when I did a cash-out refinance. Thought it'd be straightforward since my credit was solid, but nope... appraisal took forever, and underwriting kept asking for more docs. My coworker did a simple rate-and-term refi around the same time and breezed through in half the time. So yeah, I think the type of refinance definitely plays a role - your brother probably just hit the jackpot with timing or something.