What point in the pre-approval/approval process will they let you know "conditions?"

[Anonymous]

Hello All!  I have been reading posts for a while and decided to jump in with a question...

My DH and I have been pre-approved through a broker and have recently (within the past week) gotten a contract on our dream home.  My question for all of you is, at what point in this process would my broker let me know of any conditions we might have on approval (i.e. something that needs to be paid)?  Is that part of the pre-approval process or is that only discovered once it goes to UW?

I ask because I have worked very hard to correct all the inaccurate info on our CR and all of the negatives have been deleted, except for a few medical collections that are open.  The other day we got a call from a CA that I have never heard of before.  So now I'm wondering if one of the deleted items has been sent to another CA and it might show up before we close.  I am fairly certain though that it wasn't there when they did the initial pull on our credit.

Thanks for your help! 

[Anonymous]

That point should come once the file (including the home's appraisal) is submitted to the Underwriter. However, if your LO is on the ball, s/he should be able to tell you what might not fly and what to do/work on.

For us, our LO had us write a LOX (Letter of Explanation) before the UW even requested it.

[Anonymous]

Thanks for the info!  She seems really "on the ball" and has thus far been very helpful, hands-on and knowledgeable.  We have spent a lot of time discussing our options, so I would have hoped she would have brought it up by now if there was something of concern.  But if not, we're prepared to deal with it.  I am expecting a packet from her today or tomorrow so that we can sign and get this going, so perhaps she will mention it there.

[Anonymous]

there is no set point.  You may get several sets of "conditions" including a final set a few days before closing that will entail stuff you need to do, the seller needs to do, and the mortgage co/escrow needs to do to close.  The still doesn't mean that they might throw some stuff at you prior (like paying a judgement, etc.)

[Anonymous]

we got an approval with a list of like 30 conditions within 4 days of submitting to underwriting. we worked on clearing them for a week, then they sent us 5 more conditions. it's been  alot of back and forth but i finally cleared everything last Thursday, about 3 weeks after the initial approval.

today we were expecting a clear to close when they sent an updated approval with another condition that 3 forms had to be signed by us! pure paperwork, but i faxed that over right away and we will see what happens in the next few days, haha. my LO *thinks* this will be the last condition.

[BrianB_The_Loan_Professor]

Conditions start once the UW has gone through the file

[Anonymous]

I have a 660 score and a modest income, yet I was preapproved for an FHA loan at 4.5% interest. And that's with a back end ratio of almost 50%!  So, I thought for certain that I was going to get a list of conditions... but I never did. The only thing UW ever asked for was my pay check stubs...

[Anonymous]

I am still waiting for the packet from our broker - thinking I should receive it in the mail tomorrow.  I am hoping she might let me know what conditions would come up...  She ran my credit so she would know what is there.  I have run my credit recently - but not within the last month.  So as of last month nothing was on that would give concern (at least I would think).  I guess we'll see.  Thanks for all the great information!

[Anonymous]

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@Anonymous wrote:
I have a 660 score and a modest income, yet I was preapproved for an FHA loan at 4.5% interest. And that's with a back end ratio of almost 50%!  So, I thought for certain that I was going to get a list of conditions... but I never did. The only thing UW ever asked for was my pay check stubs...

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It's encouraging to read this...our ratios are a bit high, so I've been worried about everything panning out. Definitely not getting that good of an interest rate, though!!

[Anonymous]

Wow this gives me a little bit of hope. With my wifes debt, I'll be up to 49% DTI. We'll see.....