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01-04-2013 01:14 PM
I received an email this morning that our file has been sent to underwriting. However, with our credit, we already had to do go through underwriting once and submit letters for lates/medical collections (this all occured after the preapproval, offer, earnest money, etc). Can someone tell me what this second underwriting is? Our appraisal is due in the banks hands by the 23rd (this should be a non issue as the sellers already stated they will sell at the appraisal value if its lower). What exactly are they reviewing this go around - should I be scared at this point? Are we still at huge risk for denial?
- scores in Nov were 522/613/634 (needed 580 mid). Today they should be somewhat higher as utilization is way down, and last lates went over 2 years.
- we have down payment, closing costs, and reserves in the bank
- appraisal should not be a problem
- had to do 2 letters of explanation (one for paid medical collections 2010/2011, the other for a couple of 30 days lates)
- earnest money was paid day of offer acceptance
- had no conditions come back after initial underwriting
- income/employment all checked out, high enough, 2+ years at same job
- DTI is only 8% prior to mortgage
- BK7 is 7 years old next month (due to cancer medical bills)
- 2 unpaid medical collections that the LO told us NOT to pay becuase of reaging (likely we will pay this the day of closing)
Should I be worried? Just looking for some advice. Thanks!
01-04-2013 01:20 PM
Ahh don't you love the process?
Are you sure the first round it was actually sent to underwriting and it wasn't the loan officer talking to underwriting? Were you in contact with your loan processor during the first phase, or only your loan officer?
01-04-2013 01:26 PM
I have gotten emails from the processor and the LO from time to time. The LO told me that the initial underwriting review came back without conditions or a suspension, so I assumed that an acutal underwriter already looked it over. I guess to be honest I don't really even know. I emailed the processor, and asked her outright if this is the first time the underwriter has even seen our file, so I will update when she replies.
01-04-2013 01:29 PM
01-04-2013 01:30 PM
The LO may have been referring to the Automated Underwriting System, which is basically software that they plug the information in and the software then tells the LO if any conditions are needed...it is then passed on to the Underwriting department. Not sure if that is what is going on but it's a possibility.
We also had a lot of confusion as to where exactly our file was. The LO made it sound as if it was in with Underwriting because she would keep saying "I'll check with underwriting on that" when I would have a question, so while she may have been calling underwriting, the actual file hadn't been passed on to them.
01-04-2013 01:35 PM
I know we aren't denied, we are working with a local bank and a state owned bank, and I already have an account number from them, etc. The local bank does all of the work, and then sells the loan to the state owned bank. There is no option to go through another bank.
I know we went through automated underwriting as well, but that was prior to them giving us a preapproval letter. Since we have low scores, they had to do this as a first step. However, our midscore at that time was still 33 points over what it needed to be. And now it should be much higher.
Watching my email like a hawk, its driving me crazy!!
01-04-2013 01:45 PM
Watching my email like a hawk, its driving me crazy!!
Haha you should see me! With out loan, we can log into our lender's website to check the real-time status, I check it probably every hour from like 9am until 6pm.
01-04-2013 01:49 PM
I got a reply. Yes, THE underwriter has seen our file many times. She reviews every document as it comes in. The LO said she sees nothing at all to worry about and I should only worry if she worries. Easier said than done. Oh how I hate going through this. Last time we bought a house it was so stress free. Or maybe I was just naive, lol.
01-04-2013 01:50 PM
Mike, I would be GLUED to the screen. Thank god I do not have access to that!
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