01-04-2013 08:12 PM
Additional conditions could be anything. Some times the conditions have nothing to do with you. I wouldnt stress over it, once you receive the conditions (only if conditions have to do with you), just satisfy them as quick as you can. If the conditions have nothing to do with you, maybe LO or Broker, or whatever has a small error in their paperwork or possibly purchase contract issue, they will just handle those conditions themselves.
01-08-2013 09:08 AM
Gah! This is so confusing!
I followed up with the Loan Processor this morning on the letter of explanation for the insufficient funds fee and he says "We have everything we need from you, we have approval so we're good to go." I got all excited of course then asked "What happens next?" to which he says "I'm going to send the file back to Underwriting and that's is until it gets close to closing when we'll need updated bank statements and credit report." Of course the part of "back to Underwriting" caught my attention so I asked why it's going back there, and he said to review the letter I sent.
How are we "good to go" and "approved" if they still have to review the letter?
I actually asked that "Could the insufficient funds fee and the letter be a problem?" and he said that it won't be, it's just standard procedure that they have to ask for a letter whenever there is an NSF fee.
Being the way I am, I am still very skeptical of course. I logged into the online portal to check on the status of the loan and it still shows "Conditional Approval" and the letter of explanation for the NSF fee changed form "Required" to "Pending Review". I guess once that changes to status "Completed" I'll finally be able to relax a little, I hope.
01-08-2013 09:30 AM
Sounds like this is about done. Worst case they don't like the letter and deny you. But I really really doubt it.
Haha...that's it, that's the worst case? No biggie!
01-08-2013 09:44 AM
01-08-2013 09:47 AM
Remind me again, why did you get the NSF fee.
I had a judgment against me back in 2008 (which I actually thought was gone and taken care of, but that's another story) and they put a levy/garnishment on my bank account, totally blindsided me. The levy caused all the funds in the account to be placed on hold, so while the funds were still in the account, I couldn't have access to them.
Coincidently, I had scheduled an electronic payment for that same day when the funds were put on hold and I couldn't cancel it. Since the funds weren't available to use, it caused an insufficient funds fee because the bank still paid out the payment. The timing could not have been worse, right in the middle of our loan application.
I have since setup a payment plan for the judgment, so no more bank levy. This was the only NSF on the bank account all year, it's never been an issue, and the bank actually refunded the NSF fee back to me.
01-08-2013 09:53 AM - edited 01-08-2013 09:54 AM
Most of the time they will let you revise your letter of explanation. But YMMV depending on UW.
Brokers, LO's, and processors see LOE all the time and usually know if its sufficient. If they resubmitted your file then in their opinion its good to go.
I do not see any issues.
At this point I think they just like messing with me! I just logged into the online account again to see the status, and the condition for the LOE for the NSF fee is completely gone, not even on the list anymore! What the heck?! Haha.
Same thing happened with the conditions for bank statements. It was initially on the conditions list (provide 2 months of most recent bank statements) and then it disappeared.
I'm wondering if because we're not scheduled to close until June, they don't need (or want) the statements until then? Which at that point the NSF won't show anymore, therefore no letter would be needed? Does that seem plausible?
01-08-2013 10:00 AM
01-08-2013 10:03 AM
Usually just before home is done your file will be reviewed again. Check your credit and bank statements updated and give you clear to close.
Much faster process the second time around.
Do you think it's possible that they no longer want the bank statements and LOE for the NSF fee right now because when it's time to close, new statements will be needed anyway, so what's the point of complicating things with the LOE now? Does that make sense?