Do they just review the file or make phone calls or run numbers? (this may be a stupid question so forgive me)
In the underwriting process, everything you submitted to the LO is verified. From income taxes to your job to your actual debts. It's the UW department's job to verify all the information you gave them. They also see how much house you can truley afford based on your income.
So they just verify your file and make sure it meets pre-set guidelines? If you have a C/O that was paid, how do they go about verifying something like that. (Curious because I think this may delay things). Will an UW call you to have you contact a company and provide a letter in this case?
Also, will VOR need to be done if my prop management reports to my CR? (Just trying to prepare myself for the future as I read most UW delay are due to waiting on a buyer providing files)
Pretty much +1 to everything said here. I just wanted to chime in so I could share a quote from an IRS agent I was speaking with the other day:
"Most underwriters are dumber than rocks."
Maybe that's a little harsh. They're doing their job, and they're frequently the source of frustration for homebuyers. It's their job to weed out anyone who is not likely to repay the loan in full. I have been told they'd rather decline ten good loans than accept one bad loan. Considering the housing market crash you don't have to wonder too terribly hard at why. Their job is to dig into anyone listed on a loan to be sure that they are not hiding something or misrepresenting themselves in any way.
To quote DallasLoanGuy, who is in the industry and extremely knowledgeable on all things mortgage, Underwriters will sometimes ask for things that do not exist or cannot be provided. If they do ask you for something you cannot get simply try and then let your LO or broker know. I was asked to have the IRS write a blasted letter explaining I didn't owe any taxes despite that transcripts all indicate as much. Yeah, right. They aren't going to write anything special for anyone unless they owe some money. After trying on the phone and at a local office, I simply wrote a letter describing my attempts. Underwriter was then satisfied with that one.
I really think they just try and make you jump through a few hoops. I can imagine, in some circumstances, they uncover additional issues by doing this, but you will be fine. If your credit score is well above the minimum I wouldn't be surprised if they don't even follow up on the C/O unless it was in the past year or so. I had one from 2006 that they never even asked about. Our rental company does not report to our credit, so we weren't asked for anything like that. I have heard that when they do want it they'll want it sent directly to and from your rental company. So long as your leasing office is responsive I would think you can turn that around on the same day provided it is an issue.
Good luck! Don't let underwriting get to you. If they ask for something that you are unable to get simply let them know. A good LO will level with you when their requests are unrealistic, and just trying to get them what they ask for will go a long way.
Great post slappy.