Automated Underwriting?

[Anonymous]

Hello,everyone. I've been pre-approved by a local lender who ran my file through automated underwriting. She verified all of my info(income,W2's,etc),and said I made it through. What does that mean for me? Do I have at least a small chance of getting through final underwriting?

[Anonymous]

I'm bumping this up before it falls into the abyss. Can anyone tell me what it means to get through automated underwriting? I've heard conflicting stories on it,and I would like to know what getting approved by it means for my loan.

[ShanetheMortgageMan]

Automated underwriting takes everything at face value, doesn't apply logic or common sense.  That is where the underwriter comes in.  Automated underwriting may approve someone with several lates in the past 12 months, who is getting their down payment as a gift, with no reserves, seller paying all closing costs, and a borderline high debt ratio... an underwriter would feel very uneasy about that.  Some situations I get automated approvals on I know better than to issue a pre-approval letter until a human being underwriter reviews, other situations are just fine with an automated underwriting approval.  Only an evaluation of yours would be able to offer further insight.  What does your loan officer say?  Any issues he/she foresees?