cancel
Showing results for 
Search instead for 
Did you mean: 

Am I right to provide LOE's before they're asked for?

tag
Anonymous
Not applicable

Am I right to provide LOE's before they're asked for?

We got our grant letter from the county for our downpayment assistance today. It gives us 60 days to get approved and place an offer on a home. Time is of the essence!

 

I'm getting together paperwork to give the LO to send to UW. We were prequalified, but as you all know, that means next to nothing. So, for the sake of avoiding set backs because time is of the essence, I'm wondering if I should go through and write up LOEs for everything that could potentially look bad, especially because our CS is borderline at best. Ex: 2 lates from 2010, 2 paid collections from 2009 and 2010, and 2 overdrafts from about 10 months ago. The LO only specifically asked for LOE for the late payments. So should I just wait for someone to request those items, or should I include them in our package when we take it to the LO?

Message 1 of 7
6 REPLIES 6
namvet
Established Contributor

Re: Am I right to provide LOE's before they're asked for?

Just provide the documents that your LO requests.  There is no way to speed up the process. 

Message 2 of 7
Anonymous
Not applicable

Re: Am I right to provide LOE's before they're asked for?

Given your described circumstances, I would only provide one for what the lender asked for.

 

Sometimes it is beneficial to provide one and be ahead of the game (it was for me but I only had 1 issue, and it was a big issue) but sometimes not.

Message 3 of 7
crunching_numbers
Valued Contributor

Re: Am I right to provide LOE's before they're asked for?


@Anonymous wrote:

We got our grant letter from the county for our downpayment assistance today. It gives us 60 days to get approved and place an offer on a home. Time is of the essence!

 

I'm getting together paperwork to give the LO to send to UW. We were prequalified, but as you all know, that means next to nothing. So, for the sake of avoiding set backs because time is of the essence, I'm wondering if I should go through and write up LOEs for everything that could potentially look bad, especially because our CS is borderline at best. Ex: 2 lates from 2010, 2 paid collections from 2009 and 2010, and 2 overdrafts from about 10 months ago. The LO only specifically asked for LOE for the late payments. So should I just wait for someone to request those items, or should I include them in our package when we take it to the LO?


DId you start looking for a home?


Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
Hyatt Visa Sig ($23K), Amex BCP (24.8K), BofA Travel Rew Sig (22.5K), B&N World MC (22.3K), Amex RP Gold (NPSL w/ S&T), Cash+ Sig (20K),United Mil+ExpSig (16.3K), FNBO Visa (13.1K), Hilton Surpass (10K), Freedom Visa Sig (8.6K), Disc It (16.4K), Citi Dia Pref MC (3.7K),Sam's MC (10K), Wally (7.5K), JCP(5.3K), Costco (2K)
Message 4 of 7
FrugalRican
Blogger

Re: Am I right to provide LOE's before they're asked for?

If they ask you for them, you'll already have them all good to go, but don't give it to them a second sooner than when they ask.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 5 of 7
Anonymous
Not applicable

Re: Am I right to provide LOE's before they're asked for?

No we haven't started officially looking for a house. We're waiting for official preapproval (which is what all of this paperwork is for). Right now we only have prequal and none of our utilization payments are showing up on the credit report, so the LO is doing a RR. Plus my realtor is out of town until March 6th anyway. We'll be submitting our paperwork on Monday for the preapproval and hopefully by the time the realtor gets back in town, we'll have a green light from the UW.

 

I decided to go with your advice. I have the LOE saved on my computer in the event that teh UW asks for them...but I won't submit them until they're actually asked for. Thanks!!

Message 6 of 7
MBOhio2
Established Contributor

Re: Am I right to provide LOE's before they're asked for?

I had a LOE drafted from a previous mortgage application (that was denied about 6 months ago) so when my current LO asked for pretty much the same LOE, it was so nice to have it ready to go already with just a few small tweaks. Therefore, I totally agree with the previous poster's suggestion... go ahead and draft them, but just save them on your computer and wait until they are actually requested to provide them.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.