Question about the process of automatic underwriting

[juleslanr]

I am SO confused about the process of things.

I applied with a new lender. I entered in all my info, what amount I wanted, and how much I make. NOW... how much I made will not match up to my averaged 2012 and 2013 taxes because I had a low year due to medical leave in 2012.

The lender called and said he ran me through and I was "approved" but he was tryung to get me the amount of loan that I requested.  Then he proceeded to say my uploaded tax documents didn't come through and could I resend them.

So what does this mean? Can I get an "approval" but just not know HOW much I am approved for?  Why would he say I was approved in the autmated underwriting, but couldn't tell me how much for exactly?  He was supposed to look at my taxes and talk to his underwriter about getting a Dr's letter stating why I worked only half a year in 2012.

thanks for your help.

[Mrs_hambright]

This happened to me, I wanted one amount but I was approved for a lower amount, I submitted more documentation & was approved for the higher amount. I hope this helps

[ezdriver]

Automated underwriting simply means that a commonly-used computer system was used to analyze your credit report data along with supplemental data provided by you and manually entered into the system. The computer system then renders a "decision"/result that says eligible or referred. Once a human reviews your entire file, including hard-copy documents you submitted, a decision is then made on pre-approving the applicant for the amount of loan requested or for less. That is the process.

The questions you ask are good questions for your loan officer who is privy to all of your information.

All the best with your home hunting and mortgage financing.

[BrianB_The_Loan_Professor]

An automated approval is only as good as the date input before submission

if it is accurate (correct income etc) you should have a fairly reasonable answer based on the systems decision

however junk in is junk out - if he didnt see the taxes and you are self employed the numbers he used may be off and you will need to wait until the correct numbers are used - if you are w2 they will use current income and not an average of the last 2 years

Good Luck

Brian