topic Re: In Underwriting...What was your experience? in Mortgage Loans

In Underwriting...What was your experience?

tdrjustus3 — Wed, 29 May 2013 03:04:14 GMT

We just had our home inspection, they accepted our terms and the appraisal has been ordered. My realtor told me there may be some crazy requests from the underwriter so I should just want to prepare myself. I have already submitted my taxes and LOE's for cash deposits. I was wondering if some of you on the forum would share some of your requests from underwriters. I just want to prepare myself.

Re: In Underwriting...What was your experience?

smiths38 — Wed, 29 May 2013 03:54:46 GMT

I'm suppose to close on Friday.LO called tonight and said the underwriter requested chapter 7 documents and payoff for auto loan.It seems that an account that was discharged with the chapter 7 is still showing up on my credit.As for the payoff request,one of the conditions is to pay off the auto loan at closing.However,my LO also said that we may need to submit other documents as well.More sleepless nights!

Re: In Underwriting...What was your experience?

Anonymous — Wed, 29 May 2013 05:39:37 GMT

We needed...

bank statements, W2's for each of us, non renewel documentation for a CD that we have in my husband's name, all of our 401k information (statements from 1st quarter and terms from withdrawal from both accounts even though we didn't even take anything out on them), paystubs from the previous month for both, explanation letters for any lates we had on every credit card, 2 address verifications (my husband still has bank statements go to his mother's house so they wanted to verify why his addresses didn't match), I had a address verification as well from where I rented in a different city before we got married and that address was still on my credit report, copy of the check that we sent the title company for our earnest money, rent checks for the last 2 years...

That covers most of it!

Re: In Underwriting...What was your experience?

Anonymous — Wed, 29 May 2013 12:22:35 GMT

Well, beyond the documentation every loan officer should ask for up front (I included copies of the checks we had already written to the builder on the day we applied rather than to wait and be asked for them - in fact, i gave them copies of everything i could possibly come up with that might be requested), we were asked for pay stubs for my wife because she switched jobs just before we officially applied and we didn't have any to give when we applied...as well as a bank statement showing the last of the initial deposit checks with the builder clearing our account and showing an adequate balance to close at that point.

So not much really. Though we had no lates, no chargeoffs, no collections or disputes on our credit reports. It was a pretty clean file.

Re: In Underwriting...What was your experience?

tdrjustus3 — Wed, 29 May 2013 12:58:17 GMT

I have 3 paid charge offs on my file 2 from 2009 and one from 2010. They were all settled for less than the full balance. Does anyone think I will need a LOE for these?

Re: In Underwriting...What was your experience?

Anonymous — Wed, 29 May 2013 15:55:54 GMT

They may be that's back a few years. We were asked for Crazy LOE also but none of them really credit related. Some of the things they wanted were LOE of why my husband changed his last name (he was raised by his grandparents and wanted to take their last name after they passed). Then they wanted a letter stating that I would commute to work daily. I don't even know why they asked for that. The house is less than an hour from my job and of course I'm going to commute. They wanted a LOE to explain why we keep separate bank accounts. My husband works at home so they needed a LOE from his employer stating that he has permission to work at home. That's the only place he has worked. So just lots of odd little things. I'm so tired of it. I don't drink but the UW process could surely drive me to do so!

Good luck to you though, I hope it goes smoothly!

Re: In Underwriting...What was your experience?

tdrjustus3 — Wed, 29 May 2013 16:31:45 GMT

Wow. That's why I started this thread because I just wanted to make sure if they start with some crazy requests I will know I am not alone. Commuting to and from work? I really don't know what that has to do with your mortgage.

Re: In Underwriting...What was your experience?

smiths38 — Wed, 29 May 2013 17:49:02 GMT

We just left the lender.The underwriter requested things that they had already.We had to give a LOE and we had a couple of other conditions which we met.I doubt that we

will close on Friday.LO said worse case senario would be closing might be put off a week because the underwriters are backlogged.

Re: In Underwriting...What was your experience?

terminalhockey11 — Wed, 29 May 2013 18:35:09 GMT

My lender/LO is great. The UW/Processors not so much. Multiple requests for items that were already provided and their delay in signing off on 1-2 items cost us quite a bit of lender credit for close this week. I told my LO that I would easily recommend him if he worked at another company.

We provided so many items to them in either immediate fashion or within a couple of hours only to have them sit on it for days once received. Our sellers wanted a 60 day close and it just put them on standby the entire time.

Re: In Underwriting...What was your experience?

tdrjustus3 — Wed, 29 May 2013 18:51:30 GMT

So it would be a good idea to keep items I have already sent handy to resend. Our loan officer is great so I am hoping the UW is as good

Re: In Underwriting...What was your experience?

Anonymous — Wed, 29 May 2013 21:37:28 GMT

I've closed 3 homes, and 2 of the 3 just the normal docs was required.

One was a bit more picky and required some LOE's for misc items, but it was no big deal really. Overall, the UW's seemed to process things fast but this has been several years ago. I haven't bought since 2007 or thereabouts.

Hopefully I will be going through the process again. I dread it each time. No matter how great or bad your credit, they sure have a way of scrutinizing everything to nth degree.

Re: In Underwriting...What was your experience?

tdrjustus3 — Thu, 30 May 2013 22:21:34 GMT

Does anyone else have any ideas what the UW might ask for? So far I have submitted tax returns LOE for cash deposits bank statements (2 mos) child support court order.

Re: In Underwriting...What was your experience?

Anonymous — Sat, 01 Jun 2013 12:07:46 GMT

UW's are going to request additional items on anything that is outside their "ordinary" set of rules. For example, if you have a paid judgment from 5 years ago. You will probably need to write a letter and/or provide documentation the judgment is paid. If you are self-employed, tax documents and a slew of other info may be required. The last loan I did, I ended up doing by myself because at the time my spouse was self-employed and it was a PITA and I didn't really need her to qualify.

If you have a good credit score, fairly clean credit (no massive lates or spotty issues from a life event, etc), and no special conditions this will be pretty easy and straight forward.

Re: In Underwriting...What was your experience?

Anonymous — Sat, 01 Jun 2013 12:37:58 GMT

I have read all the horror stories about UW's but mine went right through. I only had 2 conditions, sign 2 LOE's. My problem was with the appraisal and the VA signing off on the value of the home since it was close to RR tracks. That was a 14 day fiasco that almost pushed me over the edge! Play the game with them. Nothing happens quick in today's market.

Re: In Underwriting...What was your experience?

smiths38 — Sun, 02 Jun 2013 05:41:45 GMT

We closed yesterday,looking back I guess it wasn't so bad.It was certainly worth all of the trouble.

Re: In Underwriting...What was your experience?

Anonymous — Thu, 13 Jun 2013 16:21:00 GMT

We were fully approved without needing to meet any conditions but we have excellent credit, a low DTI ratio, and 20% down.

Re: In Underwriting...What was your experience?

Kathy4NU — Thu, 13 Jun 2013 18:33:43 GMT

We had just a few minor ones.

When we applied I took everything I thought they would need - W2's, income tax, paycheck stubs. I probably had a folder 1/2 inch thick with everything.

They came back with two rounds of conditions.

1. Copies of rent receipts and proof of them coming out of our bank account.

2. LOE as to why we paid on the 5th of every month but in November we paid on the 9th - we had a 15 day grace period so we were ok but they wanted to know why (we were stuck in NYC with super storm Sandy). Copies of most recent paycheck stubs, copies of current quarter 401k statement. We origianlly tookk them a copy but it was the previous quarter. Finally, the day before we closed they had to verify the funds for closing were in our account but since we banked with the CU who was doing the loan we didn't have to do anything for that one.

I was sweating bullets through the whole process. Looking back now it was very simple and smooth.

Re: In Underwriting...What was your experience?

Anonymous — Fri, 14 Jun 2013 01:15:30 GMT

Waiting on ctc my conditions were to provide documentation applied for IBR for student loans 401K loan documents current pay stubs activity on checking account and savings accounts also had to write a letter to tell them where the earnest money came from. I submitted the information waiting on the final approval

Re: In Underwriting...What was your experience?

tammyjk — Sat, 15 Jun 2013 11:51:48 GMT

Since I switched brokers in mid-stream, I was ask to document deposits over 100 dollars. A bit difficult since one was from the sale of a trailer. They wouldnt accept that and I have to keep an extra 500 in my account. Not a big deal but right now that money would come in handy. I had to explain why I am renting a home from my ex. Seems I am constantly having to update my checking docs, again not a big deal. Just be careful about your deposits!

Because of switching brokers, I got a double dose of experience! I had already been approved when I made the switch but soooo happy I did. The first broker put my student loans in my DTI and shouldnt have. In turn, the lender required a Midland collection paid off. The collection is bogus and 6 years old....no way I'm paying that off now if I dont have to. The current lender accepted the paperwork from the class action suit and did not require it paid off.

We are now back in underwriting for the final approval and ctc. Broker says the 21st is a very doable closing date.

Re: In Underwriting...What was your experience?

tdrjustus3 — Mon, 17 Jun 2013 01:45:40 GMT

I think my conditions were pretty standard. My LO argue with the UW about a few of them. I need my divorce decree LOEs for cash deposits refi of car loan 401K statements and stay tax return. I sent most of it in already. Just got the cancelled earnest check and will send it in tomorrow