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

New Contributor

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
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
New Contributor

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
Valued Contributor

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


zamiller1110 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?


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Message 4 of 7
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.

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Message 5 of 7
New Contributor

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
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
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Message 7 of 7