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Automated vs Manual Underwriting?

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Dee2
New Contributor

Automated vs Manual Underwriting?

What's the big difference?  Are there benefits of one over the other?

 

Sorry if this question has been asked.  I tried doing a search and got tons of information, but none see to answer the basic question. 

 

Thanks

 

~Dee

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Anonymous
Not applicable

Re: Automated vs Manual Underwriting?

Yes, there's a HUGE difference.

Automated is just that -- someone plugged in your numbers and credit file into a software application and you were conditionally approved. That usually leads to the likelihood of obtaining final approval. After AU, a human being/underwriter has to make sure that the software approval wasn't the result of a glitch (basically, just double-checking).

If you can't pass Automated, you go through manual (a human being/underwriter manually looks over every inch of information and has to *try* and find reasons to approve you). That, AFAIK, rarely leads to a final approval.

Automated approval = good
Manual/refer = not good.
Message 2 of 3
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Anonymous
Not applicable

Re: Automated vs Manual Underwriting?

Yes, there's a HUGE difference.

Automated is just that -- someone plugged in your numbers and credit file into a software application and you were conditionally approved. That usually leads to the likelihood of obtaining final approval. After AU, a human being/underwriter has to make sure that the software approval wasn't the result of a glitch (basically, just double-checking).

If you can't pass Automated, you go through manual (a human being/underwriter manually looks over every inch of information and has to *try* and find reasons to approve you). That, AFAIK, rarely leads to a final approval.

Automated approval = good
Manual/refer = not good.
Message 2 of 3
Anonymous
Not applicable

Re: Automated vs Manual Underwriting?

An automated approval means you are approved through the system on a couple of conditions:

 

All information provided is accurate and proveable

 

Nothing changes in your credit profile

 

Nothing changes in lending standards/programs

 

The house can appraise for the sales value.

 

Manual means that there are issues (sometimes small and sometimes big) that need to be addressed by an actual person.  Usually in manual there will be more scrutiny and alot more documentation.  It doesn't mean you will not get approved, just that there may be more hoops to jump through.

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