topic Re: Help understanding Conditions in Mortgage Loans

Help understanding Conditions

Anonymous — Thu, 17 May 2018 20:41:24 GMT

So my LO messaged me and said that she had gotten the conditions back from u/w and would look it over and get back to me within the hour. She never did so I messaged her again and she responded by saying her processor was scrubbing the list and hadn’t given her back the list of conditions for me. What does that mean? The processor also has things to prove to the u/w?

Re: Help understanding Conditions

ShanetheMortgageMan — Thu, 17 May 2018 20:53:36 GMT

When a conditional loan approval is issued, it lists everything the underwriter needs in order to issue the clear to close. It lists items needed from you, the loan officer, the processor, the appraiser, the title company, the insurance company, the real estate agents, etc. This list may be very short or could be quite extensive, depending on how good of a job your loan officer and processor did at putting together the file for the initial underwriting review. A thorough job by your loan officer/processor will result in far fewer conditions later on.

Usually your loan officer will only let you know about the items needed from you, as not to inundate you. Some loan officers will share the entire list though, will go over each condition, who it's for and what the plan of action is to satisfy it.

Your loan officer and their processor may still be figuring out how to satisfy some of the conditions, so rather than giving you a partial update, the loan officer wants to make sure every condition is addressed before they supply you with the list.

For example, on our conditional approvals I go over them with my processor first to divide up who will be responsible for obtaining documentation to satisfy each condition. After we've had that discussion I provide the full list, highlighting which ones my client needs to assist with, and providing a short explanation on the ones that we are gathering up from other parties to the transaction. I have a feeling your loan officer is also operating in the same manner.

Re: Help understanding Conditions

Anonymous — Thu, 17 May 2018 20:59:07 GMT

Ok that makes sense. One more question, I had to be switched from conventional to FHA because the u/w said my pension in Massachusetts was not a liquid asset. So I already had an appraisal done and it appraised at the exact amount offered. Well now they need to do an FHA appraisal, but it hasn’t even been ordered yet and I’m due to close on June 1st. I’m worried that they haven’t ordered the appraisal yet.

Re: Help understanding Conditions

ShanetheMortgageMan — Thu, 17 May 2018 21:11:31 GMT

If the conventional appraisal was done by an FHA approved appraiser, they can use the same appraisal report but will have to do a new inspection because the appraisal's effective date cannot be before the FHA case # is assigned. Ask your loan officer if that is something that can be done. If so, it'll cut down on the time needed to satisfy the appraisal condition. Since they just got the conditional approval today, they probably will be ordering the new FHA appraisal today as well. If the appraiser can complete it quick enough, then you should still be able to close on time... but it is getting close.

Re: Help understanding Conditions

Anonymous — Thu, 17 May 2018 23:02:56 GMT

Thank you ShanetheMortgageMan! You’ve been very helpful!!

Re: Help understanding Conditions

ShanetheMortgageMan — Fri, 18 May 2018 00:17:49 GMT

You're welcome, my pleasure.