What happens during Underwriting and what can make me fall out of escrow

[Anonymous]

I'm on my 18th day of Escrow. Appraisal was done yesterday, 2/11/15.  If house is appraised comparable to my offer $195k and it goes to Underwriting, what happens there and what bumps will cause me to not able to get funding? I'm a first time home buyer and going with a FHA Conventional Loan. Preapproved for $225,000.
Listing price was $199,900, offered/accepted price $195,000.

Submitted my offer on 1/23/15.
Seller accepted 1/25/15.
Day 1 of Escrow was 1/26/15
Earnest deposited on 1/26/15.
Home Inspection, Pest Inspection completed on 2/4/15.
HVAC Inspection completed 2/9/15
Appraisal completed 2/11/15

Scheduled to close 2/24/15

I could google and get my answer but there were so many, I'm a train wreck. Figured people on this forum would give me more reliable answers. Thanks!

CapitalOne Auto Finance $13941.61, Barclay $2500, Macys $1300, CapitalOne (prev. Orchard Bank) $750, CapitalOne $750, CapitalOne $2250, Kohls $400.
Ch 7 Bankruptcy discharged 12/2009 due to divorce, no late payments ever since.

Middle Score was 727.  I forgot what the others were.

[Anonymous]

I can't speak to the bankruptcy because I don't know what lenders are looking for exactly there. But it seems with that score you should be ok. It took us almost exactly a week from the time the appraisal came back at our purchase price to get through underwriting. I got my clear to close today. We were scheduled for 2/23 but I'm trying to move it up to 2/20.

I had three total conditions I had to clear during underwriting.

Verification of Employment

Letter of explanation for property my father owned and sold last year (we are Sr./Jr.)

Explanation of large deposits because my paycheck was paper instead of direct deposit last month because of changing payroll processors.

That was it. Everything else was smooth sailing.

[Anonymous]

I've got my fingers crossed!!

That's great to hear!! After your CapitalOne incident, I'm sure you're more than relieved.!! Congrats! 

[Anonymous]

The lender is still going to do a soft pull the day before closing. That's when I have to have the letter from Capital One. When they do the soft pull thats when that new inquiry will show up.

[newstart2010]

Make sure your taxes are complete and you owe nothing.  And make sureyour credit profile has no surprises in it.  Do not apply for any credit and do not allow anything to pull your credit. Do not use your credit cards.  And do not make any changes of employment or banking.  Have all of your documents readyand when they ask for something get it to them.  do not delay in any way.

[Anonymous]

Yes, I've filed my taxes and luckily i dont owe.   All docs have been turned in to my LO so I'm just waiting now...and I'm leaving my CC's alone until we close. Thanks for ur info!

[andemalia]

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@newstart2010 wrote:

Make sure your taxes are complete and you owe nothing.  And make sureyour credit profile has no surprises in it.  Do not apply for any credit and do not allow anything to pull your credit. Do not use your credit cards.  And do not make any changes of employment or banking.  Have all of your documents readyand when they ask for something get it to them.  do not delay in any way.

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We are also in underwriting, but we use our credit cards and then pay them off before they are due every month; our balances are always $0; we charge most of our daily expenses except liabilities on it. That shouldn't be a problem so long as they are paid in full and that doesnt change anything to your financial picture right?

[Anonymous]

It's not so much don't use your cards as it is don't go out and buy $1000 worth of furniture because you're approved. Making your normal purchases is probably okay. Just don't spend too much to change your DTI

[newstart2010]

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@Anonymous wrote:
It's not so much don't use your cards as it is don't go out and buy $1000 worth of furniture because you're approved. Making your normal purchases is probably okay. Just don't spend too much to change your DTI

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+1

You don't want to go out and put all your new furniture deposits on there, or live off of them because you can't touch yourbank accounts of something. You want to make sure the financialpicture you gave them in the start is the same at the end.

[Anonymous]

my loan application was sumitted to underwirting .. yesterday 3/2..

am so nervous right now.. how long will it be before I Get feedback ?