Underwriting/tax return transcripts

[How2increase]

My file went to underwriting sometime last week and needless to say, I've been a wreck!! 

This afternoon my mortgage broker called me and said the underwriter is asking for our 2010/2011 tax return transcripts...I'm not sure if that was our conditional approval or just something that they need before looking further into our file? Our closing date is basically ASAP because we need to be out of our rental by the 20th 

The company that I will be using for home insurance said he was told our closing date is this Friday 9/14  has anyone been asked for these documents and if so, where were you in the approval process?

I just need some comfort lol thanks in advance!!

[Catacam]

Our lender actually pulled those from the IRS themselves. We had to sign a form giving permission, but that was something the processor did.

[Anonymous]

I was asked for tax returns when I was in underwriting.

Watch out though because if you have any write offs like transportation, gas, office supplies they can include that into your DTI...it almost screwed me last minute because it put me over DTI. All I had to do was refinance car to lower monthly payment.

Good luck!

[How2increase]

Thanks for responding guys!!! 

Catacam, they tried but for some reason could not access it. I think they might have had the incorrect address. Was that technically one of your conditions? And once they received the documents, how long for your approval?

Colepatrol, the good thing is that my husband and I don't write anything off. It's a very simple tax return. Also, was that a condition, and once it was received when did you get your approval? 

I just would like to know if I should still be expecting a looonngggg list of conditions or if that was the only thing they will need to give final approval......this waiting game Has me so anxious!!! 

[StartingOver10]

Tax returns and transcripts are absolutly normal.

It is really surprising that they waited until now to even access your transcripts.

You will need them prior to getting your clear to close.

[How2increase]

Yea I found that weird as well, I thought that would have been the first thing they asked for. Unless my file was just submitted into underwriting this Monday and not last week Tuesday as I thought. 

We were approved through automated underwriting, does the manual underwriting just confirm that everything is in fact correct? 

[Anonymous]

The automatic underwriting system confirms the information your loan officer put into the system to make sure it will pass agency and corporate guidelines.  At the office, we use the phrase "junk in, junk out" referring to this because your loan officer must enter in the correct information to make your findings as accurate as possible.

The manual underwriting system is when an actual person reviews the file to ensure everything will pass guidelines. 

[How2increase]

Thanks for the response..

I am also trying to figure out what it means when they ask for the transcripts,  was that my conditional approval? My Mb just said that they requested our transcripts. I sent everything else needed LOE, rent verification, w-2, stubs, statements, so I'm hoping that's the last needed they need before being sent off to close. What do you think?

[Anonymous]

We had to submit our tax returns both times we went to underwriting. I believe it's very common. one of the underwriters required us to sign the tax returns which i thought was odd. But i just do what i'm told to keep the process going. We were approved by one underwriter until they saw that we had one late 30 day on our current mortgage back in April. It was so disappointing. We are going through a mortgage broker now that says that a 30 day late will not effect us but now i'm so worried because of what happened the first time. we are waiting for the underwriter once again, which need the same info as the first one (VA but different) it's been a week and no status.

It'll all be worth it once it's complete and your moved in

[Catacam]

I believe that tax returns and tax transcripts are two different things. For us, it was one of the conditions that came up in the middle of our 20 day UW. Our final conditions were the reinspect on our appraisal, signed HUD, and other misc. things. It is however totally normal!