File approval != underwriting?

Anonymous — Wed, 15 Apr 2009 16:00:55 GMT

I have to furnish proof as a part of my purchase agreement by/on the 20th of April.

My loan officer said this means that they have to have the file approved by then.

Is that the same as undergoing the underwriting process? Because if so, I feel screwed because they haven't put it in yet!

Re: File approval != underwriting?

Anonymous — Wed, 15 Apr 2009 18:26:17 GMT

@Anonymous wrote:
I have to furnish proof as a part of my purchase agreement by/on the 20th of April.

My loan officer said this means that they have to have the file approved by then.

Is that the same as undergoing the underwriting process? Because if so, I feel screwed because they haven't put it in yet!

Proof of?

If this is a requirement on the seller's part, that just means (in our experience) that they want a pre-approval letter. Basically, that just assures the seller that you're a good risk and they can rest easy at taking the home off the market.

OR, it could mean that the LO wants all of your docs by that date.

I doubt it, though. I really think it's the seller wanting the reassurance that s/he's not taken the house off the market for nada.

BTW, normally, you don't have to provide the letter directly to the seller (or the listing agent). Simply showing it to your buyer's agent (if you have one) will suffice (that way, your agent can reassure the seller/listing agent that you DO have pre-approval for enough to buy the home).

In our case, that's what we did. Although we qualified for $350K, the house we wanted was listed for $250K and we wanted negotiation room! Letting the seller know that you can afford to pay more NEVER works out!!

topic Re: File approval != underwriting? in Mortgage Loans

File approval != underwriting?

Re: File approval != underwriting?