Home loan underwriting?
We are just about to have our home loan go to the underwriter…. And it is killing us….. We were prequalified and pre approved…the broker showed me a printout from his computer stating that we have been “accepted” under the FHA guidelines, for a loan…. We have given factual info. And have submitted all documentation that has been requested (W2’s, employer info, etc.) The broker told me that he would not waste his time on the loan if there were some glaring issues….But, it still has to go to the underwriter… My question is this…. If all documentation checks out and is accurate, we have filled out all paperwork correctly; the house appraisal / inspections are good. What are the chances of the underwriter rejecting the loan? Is the fact that the loan is FHA approved increasing our chances of getting approved…. There are no credit issues in the last two years. One of us has a bankruptcy from 5 years ago. That was disclosed and our credit scores are in the 610 – 640 range……Thanks … The sleepiness nights are killing us…We just want an answer….
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February 28th, 2011 at 1:50 pm
In layman’s terms:
First of all, a loan is NEVER approved until the underwriter signs off on it (I don’t care what you have been told)!
You are only "Pre-qual’d", the automatic underwriting from the computer just says you meet the requirements of the loan based on what’s on the application. Nothing has been "officially" verified yet! That’s what the underwriter does.
You are going to have to wait! If the underwriter needs addl. information or clarification, they will be part of a conditions statement sent to the loan processor. Some are todos for you, and some for the processor and the title company. There are other considerations like the title search, survey, etc…
Your loan officer should be educating you on this stuff (if he/she knows what they are doing).
February 28th, 2011 at 1:50 pm
ok first off calm down the L/O is usually fairly accurate also he has nothing to gain by lying. the usual thing to do is to give the loan they think will get approved to underwriting then the underwriter basically CONFIRMS everything is true and accurate although they do have the final say so. so like I said calm down relax and enjoy your new home when you close….