topic Re: Will Someone Please Explain What The Underwriter Is Talking About in Mortgage Loans

Will Someone Please Explain What The Underwriter Is Talking About

Anonymous — Tue, 13 Sep 2016 02:26:02 GMT

In my other post earlier I said my loan came back with underwriting conditions. Here is part of what he said regarding my grandchildren. I am not sure what he means by insurance. Health Insurance? Anyone have any other guesses? I did provide them with a letter showing I get some help from the state for my grandchildren it's a small amount $190 month total. I don't know if they lost the letter or just forgot to send to the underwriter. I have been getting this help for about 2.5 years will they count it as income? The grandchilden get Medicaid and have since they born.

That is what the underwriter is asking for but are the two children your grandchildren?

We may need that income to help you qualify. If we can’t use that income then we'll need the following:

You will need to pay off the other credit card
You'll need insurance for $100 or less

So, to recap…if we can’t show the income for the children, we MUST have insurance for $100 per month or less and then all three credit cards have to be paid off. Those can be paid at closing and just bring your closing costs up by only $683 (the total balance all cards had when we pulled your credit).

Re: Will Someone Please Explain What The Underwriter Is Talking About

Anonymous — Tue, 13 Sep 2016 02:39:53 GMT

@Anonymous wrote:
In my other post earlier I said my loan came back with underwriting conditions. Here is part of what he said regarding my grandchildren. I am not sure what he means by insurance. Health Insurance? Anyone have any other guesses? I did provide them with a letter showing I get some help from the state for my grandchildren it's a small amount $190 month total. I don't know if they lost the letter or just forgot to send to the underwriter. I have been getting this help for about 2.5 years will they count it as income? The grandchilden get Medicaid and have since they born.

That is what the underwriter is asking for but are the two children your grandchildren?

We may need that income to help you qualify. If we can’t use that income then we'll need the following:

You will need to pay off the other credit card
You'll need insurance for $100 or less

So, to recap…if we can’t show the income for the children, we MUST have insurance for $100 per month or less and then all three credit cards have to be paid off. Those can be paid at closing and just bring your closing costs up by only $683 (the total balance all cards had when we pulled your credit).

I had to read this a few times, but I think he means your homeowners insurance will need to come in under $100 per month for the DTI to work. That's my guess.

Re: Will Someone Please Explain What The Underwriter Is Talking About

Anonymous — Tue, 13 Sep 2016 03:16:35 GMT

That makes perfect sense and I'm sure that's what he meant. Unfortunately, I live in a hurricane prone area and that insurance amount will never work. The cheapest I have found is abut $130 a month. I guess I could go with a large deductible and tweak it some in order to close and then change the coverage next year. Does anyone know if you can switch coverage mid year?

Re: Will Someone Please Explain What The Underwriter Is Talking About

MrChairman — Tue, 13 Sep 2016 15:31:48 GMT

You can switch insurance coverage whenever you want.

Re: Will Someone Please Explain What The Underwriter Is Talking About

DallasLoanGuy — Wed, 14 Sep 2016 00:18:27 GMT

@Anonymous wrote:

I had to read this a few times, but I think he means your homeowners insurance will need to come in under $100 per month for the DTI to work. That's my guess.

that is how i read this too