Underwriting Overlays

[fixmycred14]

Should I email the preferred lenders of the builder and ask what the UW overlays are? Specifically, as they refer to charge-offs & collections?  I know FHA does not require these to be paid off but the lender may.

[BrianB_The_Loan_Professor]

If your intention is to pick from them then yes this is a good idea - out before applying where you stand

Good Luck

Brian

[fixmycred14]

Yes, I don't know anything about the four preferred lenders. So, before I apply I would like to know what overlays they may have.

[Christian123]

Yes. I think it's a good idea to call them and ask before you apply.  If I had done that it would've saved me a couple inquiries.  I was denied by one of the preferred lenders due to their overlay and was approved by the other.

[fixmycred14]

Thank you for the advice.

[fixmycred14]

I received one response so far...the mortgage company said that their FHA loans go through the government. They also said they are capable of doing higher ratio loans with lower scores. I want to know what the exceptions are?? I didn't get as detailed of an answer as I was hoping for. Since, I'm not ready to app I didn't want to get too much into my profile....or should I?

[DallasLoanGuy]

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@fixmycred14 wrote:

I received one response so far...the mortgage company said that their FHA loans go through the government. They also said they are capable of doing higher ratio loans with lower scores. I want to know what the exceptions are?? I didn't get as detailed of an answer as I was hoping for. Since, I'm not ready to app I didn't want to get too much into my profile why?....or should I?  when are you applying?

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it doesnt hurt to ask questions....

[fixmycred14]

I'm looking to apply in May/June.  I wanted to use this Q&A period as a process of elimination. I don't want to put my foot in my mouth and say too much too soon.

[BrianB_The_Loan_Professor]

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@fixmycred14 wrote:

I don't want to put my foot in my mouth and say too much too soon.

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No one here is going to care one way or the other

we are here to offer free advice and help along the way

Not that this is what you meant but if you have concerns or issues that you need help with dont hesitate to post them 

Good Luck - I like how you are planning ahead

Brian

[fixmycred14]

Thanks for your support. Yes, you're correct! I meant the LO. Is it better to lay out my entire profile or wait until I'm ready to apply?