Mortgage Loans

[scmami]

Hi everyone. i am frustrated with the mortgage process. This is a new build. We are doing FHA. We were Approved/Eligible when we were preapproved. Mid score 647 I think. Our projected closing date (according to the lender)is in less than 2 weeks. We have not received any conditions from underwriting yet. Is this normal? Our LO is not my favorite person as he is slooooow returning emails or voicemails. I would not ever recommend this lender based off the poor service I have received thus far. Anyway, is it normal not to have conditions yet? I am sure we'll need LOE or proof of payment for paid charge offs or SOMETHING. Seems like my LO would have prepped me for exactly what I may need but he has been pretty useless

[webhopper]

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scmami wrote:

Hi everyone. i am frustrated with the mortgage process. This is a new build. We are doing FHA. We were Approved/Eligible when we were preapproved. Mid score 647 I think. Our projected closing date (according to the lender)is in less than 2 weeks. We have not received any conditions from underwriting yet. Is this normal? Our LO is not my favorite person as he is slooooow returning emails or voicemails. I would not ever recommend this lender based off the poor service I have received thus far. Anyway, is it normal not to have conditions yet? I am sure we'll need LOE or proof of payment for paid charge offs or SOMETHING. Seems like my LO would have prepped me for exactly what I may need but he has been pretty useless

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If you came back as Approved/Eligible, the underwriting criteria gets a whole lot easier... 

Has he asked for bank statements, paystubs, w-2s, rent history, and all of that stuff yet?

[kpresley]

Have you sent them paystubs, bank statements, taxes, ect?  If not I would be worried.  If so, I wouldn't be.  My loan just went to UW yesterday and we're scheduled to close on 10/30.  They should have plently of time in that two weeks to finish it up for you.

[scmami]

Yes, about two weeks ago. I am sure they'll need new ones, right? Also, a loan processor said "our loan is in line to be reviewed to be submitted to underwriting...." I guess that means an underwriter has not touched it/seen it yet. I am glad aproove/elig. means maybe limited issues in UW, I am just concerned they'll need something I may not have readily available...like a statement from a creditor or something. DTI is great, I'm just nervous about the UW seeing something in the credit file.

[scmami]

@kpresley...thank you. and congrats on your upcoming purchase! That makes me feel better. I have LOEs prepared if they need them, I just want some communication. I knew my MyFico fam would help me understand.

[webhopper]

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scmami wrote:

Yes, about two weeks ago. I am sure they'll need new ones, right? Also, a loan processor said "our loan is in line to be reviewed to be submitted to underwriting...." I guess that means an underwriter has not touched it/seen it yet. I am glad aproove/elig. means maybe limited issues in UW, I am just concerned they'll need something I may not have readily available...like a statement from a creditor or something. DTI is great, I'm just nervous about the UW seeing something in the credit file.

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If you end up with an Refer / Eligible...  that's when you have to jump through all the hoops...

With an Approve / Eligible: 

The DE underwriter is not required to:

 personally review the credit and/or qualifying ratios; or

 to certify that the borrower’s credit and capacity meets standard FHA requirements.

The DE underwriter is required to underwrite the appraisal according to standard FHA requirements

here is the link to the explanation for the FHA Total Scorecard, which is what is used to approve you for an FHA loan : http://portal.hud.gov/hudportal/documents/huddoc?id=total_userguide.pdf

[scmami]

Thank you for this information webhopper! I'm more at ease now. I don't see anything that would put us in a manual downgrade or "refer" so that is a relief!