Hi New Yorkers - first time buying a home in New York state. I have a SFR house under contract with a close date next month.

Question: I've asked my Loan Officer for an update on the mortgage and her response was, "We are waiting for the processor and the underwriter. They usually underwrite and approve the day of the mortgage contingency." 

Is that true? Do you really only know if the mortgage is approved on the final day your contract says you need it approved it by?

It feels like it would cut things incredibly close, say for example if you needed to ask for an extension on the closing date to find another loan product if this first one isn't approved for some reason. Would love feedback or ideas of other questions i can or should be asking this loan officer to instill confidence this is going through (before the contingency date). 

For example, in California you usually have conditional approval much earlier in the escrow process, so it's quite clear you are good to go before closing as long as the conditions have been met.. 

Thanks in advance for any responses or insights