Loan Processing

[Queenie17]

I just signed my FHA mortgage loan application today.  I was asked to supply most recent pay stub, most recent bank statement, most recent 401K statement since I am getting my downpayment from 401K, and last 2 years of W2s.  What happens next? What exactly does the LO do to verify my information, especially credit accounts?  I have high income 100K+, low DTI, but mid FICO was 629 and I was preapproved.

[ShanetheMortgageMan]

Loan officer will analyze the information you've provided, update the numbers (if needed) in their loan file, and will re-run automated underwriting to insure you still are pre-approved.  If additional verifications are needed  regarding what you are planning to provide they will contact your employer and the depositories where your money is on deposit.  Credit accounts are all listed on your credit report, so no additional verification of those is necessary (unless the information on the credit reports is incorrect and you are trying to obtain an approval with the unreported corrections).  At that point, if you haven't already received it, you should get a pre-approval letter.

[Queenie17]

So there is a second "pre-approval" letter?  When does the official approval occur?

[BrianB_The_Loan_Professor]

The official approval comes after an underwriter reviews everything including the property (appraisal)

and has concluded hat everything lines up with their guidelines

The LO is the collector and should have a fairly good idea of the outcome

but the underwriter has the final say

B

[Queenie17]

What exactly does the underwriter do?

[ArmyStrong]

To my knowledge, it's like Brian said. In other words, they verify and confirm the information and documents you provided to the LO, and match it against the lending and/or underwriting guidelines set forth by that lender. If you fall within their guidelines, then you s/b ok. Hope that helps!

[Queenie17]

Thanks.  I just wanted to be sure that I understood the process.