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processing vs. underwriting

Regular Contributor

processing vs. underwriting

Just got an update from LO that my file is in processing for all the verifications required by VA then off to underwriting. What does all this means? what is the difference between processing vs. underwriting?

Myfico: 03/26/2015: EQ 652, EX 680, TU 738 Barclays

Barclays $4.7K, NFCU Platinum $15K, AMEX BCE $15k, HD $12k, Sams $3.5k, Walmart MC $3.5K, NFCU LOC 10K, GE local Furn store $3.5k, AMEX ED $10.5K
12 REPLIES
Senior Contributor

Re: processing vs. underwriting

Just curious .... did you ask your LO that question? It is a simple one for any LO to answer.

 

Processing is involves collecting all documents and packaging the file for the lender's underwriter's review. Underwriting involves verification that the file meets all of the lender's guidelines and rules. In the case of a USDA loan, the file is first underwritten by the lender and then it is reviewed again by a USDA underwriter when it arrives at the USDA.

Regular Contributor

Re: processing vs. underwriting

Dreamer,

I got a fantastic document from Veterans United today explaining the process. I went under contract last week. If you would like I can send it to you. I'm sure it is probably about the same for your lender.
Regular Contributor

Re: processing vs. underwriting

Laura1369, I would love that! Thank you.
Myfico: 03/26/2015: EQ 652, EX 680, TU 738 Barclays

Barclays $4.7K, NFCU Platinum $15K, AMEX BCE $15k, HD $12k, Sams $3.5k, Walmart MC $3.5K, NFCU LOC 10K, GE local Furn store $3.5k, AMEX ED $10.5K
Regular Contributor

Re: processing vs. underwriting

Dreamer... Sent it to you in a PM
Regular Contributor

Re: processing vs. underwriting

Laura1369- exactly what I needed!!!!!!!!! But now, I am nervous about something I read:

"please do your best to avoid transferring money from one account to another."

My husband just did this to an account we only use to pay bills. When payroll makes their monthly deposit, he makes the monthly bills into our bill account. Should I be worried?

Myfico: 03/26/2015: EQ 652, EX 680, TU 738 Barclays

Barclays $4.7K, NFCU Platinum $15K, AMEX BCE $15k, HD $12k, Sams $3.5k, Walmart MC $3.5K, NFCU LOC 10K, GE local Furn store $3.5k, AMEX ED $10.5K
Regular Contributor

Re: processing vs. underwriting

If this is something you do every single month they will see that in the statements you send them. I don't think that would be too much of a problem. Maybe it might need an LOE?
Valued Contributor

Re: processing vs. underwriting

Im pretty sure that as long as you provide the statements you are good.

 

I move money into savings as a staging area for bills and pull it out as needed. So it looks like im moving money out of savings a couple times a month.

 

But it is ok since it is your money.

Regular Contributor

Re: processing vs. underwriting

I feel better about I guess. It does happen evert month and I have provided statements for it. We will see what underwriting has to say.
Myfico: 03/26/2015: EQ 652, EX 680, TU 738 Barclays

Barclays $4.7K, NFCU Platinum $15K, AMEX BCE $15k, HD $12k, Sams $3.5k, Walmart MC $3.5K, NFCU LOC 10K, GE local Furn store $3.5k, AMEX ED $10.5K
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Valued Contributor

Re: processing vs. underwriting

Worst case you will have to write a letter.