You should receive a copy of the loan commitment (approval) no later than the contigency date on your sales contract. It will list any outstanding items lender still needs, if there are any. That’s what most folks mean when they say “loan approval”, and yes, you get it as part of the mortgage process.
If you are talking about a copy of the loan approval generated by D.U,or L.P which are the two software programs used to underwrite clients loans, or the raw copy of the underwriters review of the documentation then the answer is “YES” It is uncommon to give the buyer a copy of these documents. They are full of lingo only someone in the industry would understand. There are things that could cause the borrower unnecessary duress over something that is nothing. What is common practice is to give the loan applicant a cleaned up version of the loan approval. It will say the loan is approved, what type of loan the approval is for, when it expires, and more importantly those loan conditions that are relevant to the applicant. Another wards this loan is approved but we need you to provide us with W-2’s that support the income claimed on the 1003 (loan application). It has nothing to do with trying to hide anything from the consumer and everything to do with keeping the consumer calm during one of the most stressful times of their lives.
If you have formally applied for a loan—-not requested a Prequalification/PreApproval—-then you should receive a written commitment from the Lender outlining the terms of your loan approval and any conditions required prior to and at closing.
Here in New York the State provides a standard language format for all Lenders in New York State to follow when providing a written commitment. Your state may have different regulations regarding the issuance of a loan commitment.
Are you working with a Mortgage Broker? Or are you working directly with a Lender?
Also, I’m confused when you state, “WE ordered the appraisal…” Applicants don’t order appraisals; we Lenders do that.
Bottom line: if loan is approved your Lender should issue a written loan commitment.
Hope that helps! Trevor Curran NMLS #40140