11-27-2012 11:55 AM
I am currently using Wells Fargo (I know, I know!) for my VA loan. I received an APPROVE/ELIGIBLE through their DU. My question is basically; What does this truely mean? Is this the best outcome possible in DU? If it is, why does it still have to go to an Underwriter? I turned in all documents requested (W2's, Last 2 months Bank statements, Last 2 months of pay stubs, TSP statement). Now I'm doing the underwriting waiting game. Do I have anything to worry about at this point? My credit is absolutely clean (lowest FICO is 707 from EQ), low car payments (total for both is less that $500 a month), and low balance on CC (less than 10% limit). I just don't understand the purpose of the DU if it STILL needs to go to someone else. My LO reviewed everything (all requested documents listed above) and even re-entered my stuff into DU in front of me. What is the actual Underwriter going to do different?
11-27-2012 04:27 PM
The DU just gives them an idea of if you will be approved for the loan, it does not usually take into account all the paperwork. The underwriting team scours all the paperwork and makes sure everything you have told them and given them is correct.
11-27-2012 05:36 PM
So again, if they (the underwriters) "scour" the paperwork manually, what's the purpose of the DU? I guess, to me, its just an added pointless step in an already long, stressful process. Based on that, it shouldn't matter what you get in DU since there is so many different outcomes you can get in DU and still go to underwriting.
11-27-2012 06:43 PM
Typically if you told the truth about the info that was entered in to get a DU approval the underwriters will just manually check all your docs to make sure and you will get an approval. But sometimes if you have some questional stuff the underwriter might want you to write a letter explaining what the heck happened.
Then you have lender overlays, FHA may say something is cool but the lender may say heck no and deny you. That is what happened to me.
11-28-2012 05:38 AM
I told the truth and everything I turned in we went over together and verified. Orginally I received the pre-approval over the telephone after submitting the pre-approval app over the computer. I had a follow up interview with the WF LO and was told to bring in all documentation, which I did. during the interview, i filled out the full application, and handed over the stack of paperwork. We then went page by page verifying everything. She then went in a updated my information in Du (address update mainly and exact checking and savings balance to the cents) and ran it again which resulted in the same approve/eligible finding. I guess I'm just nervous after reading all these posts about U/W and the nightmare of finding out at the last minute you've been denied.
11-28-2012 06:01 AM
You should probably be ok, unless you hit some kind of overlay.
DU just approves you based on FHA guidelines, and the underwriter will make sure you fit their guidelines as well.
I had DU approval, went to underwriting and was denied because my wife had issues on her report. A recent late payment on her mortgage. We knew about this so we put her as a non purchasing spouse. DU was cool with this, the underwriters were not.
08-14-2014 07:46 PM
In April of this year I applied for a mortgage here in Dallas. I got an Approve Eligibe; had good credit of about 675 good income and acceptable debt to income ratios. Went to manual underwriting and was also approved. Got all the way to within a week of closing and got a refer with caution; therefore a denial. The mortgage company ran it 15 20 and 30 years and got refer with caution. The mortgage company did the right thing and refunded my apprasial fee as they never would have accepted the fee if I got a refer with caution up front. I got the news on July 3rd the day before the4th about 11:30 am. At 2pm I called my current lender who felt they could get the loan approved and the loan officer took two hours and submitted my application to the DU underwriting system and got an Approve Eligible. How can one mortage compamy get refer with caution and another get Approve Eligible and they imput the same data? I closed on my refinace this past Friday August 8, 2014. I emailed 4 members of the mortgage company that turned me down/ The DU system is indeed a mystery. Also my second mortgage company which is my current lender the last 6 years had to do another conventional appraisal even though I already had a conventional apprasial that was only 3 weeks old; saying they could not take another lenders appraisal. Why not; they all go thru a third party. What a scam this entire business is.
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