Wells Fargo Mortgage Process

[Anonymous]

Hi Everyone!  I'm a new poster, but have been reading the forum for a few months now. 

My husband and I got pre-approved through Wells Fargo, and have had an offer accepted on our very first home.  We've had the inspection done, and the house is in great shape.  The appraisal is scheduled for today.  Does anyone know if my file is already in underwriting, or if Wells Fargo usually waits until the have the appraisal back? 

Thanks!

[StartingOver10]

You go to underwriting after the appraisal and your other documents are collected by the processor.

[webhopper]

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@Anonymous wrote:

Hi Everyone!  I'm a new poster, but have been reading the forum for a few months now. 

My husband and I got pre-approved through Wells Fargo, and have had an offer accepted on our very first home.  We've had the inspection done, and the house is in great shape.  The appraisal is scheduled for today.  Does anyone know if my file is already in underwriting, or if Wells Fargo usually waits until the have the appraisal back? 

Thanks!

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The house appraisal also needs to be "underwritten"...  So until you have the appraisal, then you are not really "in underwriting yet"

The best way to explain it (mortgage guys feel free to jump in if I'm wrong)  is that there are two parts of the the underwriting process:  The borrower and the property.

When the borrower is underwritten, they are looking at your scores, income, debt to income ratios, reserves, banking history, credit history, length of employment, even education in some instances.   They also make sure that your down payment isn't coming from a loan that will have to be repaid. These things tell them how likely you are to repay the debt, and how likely it is that your income will improve over time, which affects your ability to keep paying the note over time.

When the property is in underwriting, they make sure that it is in good shape, this may include a clean pest inspection, and a certification that it is not in a flood zone.  They also want to make sure that the property is worth at least as much as your loan value. The appraisal tells them all of this information.

If everything checks out, you will get to buy the house.  If the underwriter wants to further evaluate you as the borrower, they may ask for explanations for any negative information about your job history, credit report, bank history...  such as an overdrawn checking account, or a period of unemployment within the last few years.