Automated System Approval...now what?

Mike_B03 · ‎12-11-2012

Some good news today from our LO...they finally got the self-employed income all figured out, punched the numbers "into the system", as they said, and it came back approved.

The LO said something that a loan processor will now be assigned and call us, then said that it needs to go back to underwriting for approval. I'm pretty lost on the whole process...

This whole time we were told it was already in underwriting and they were checking our self-employed income, they have had the application, W2s, taxes, bank statements for about 4 weeks now.

Does it go to the loan processor first and they send it to underwriting? Does the AUS approval actually mean anything or is it pretty worthless?

MNnFL · ‎12-12-2012

AUS simply tells the LO that you are "eligible" based on the inofmration they put in. The AUS approval is only as reliable as your LO. Following this stage, your LO will hand your packet over to the Processor and they will ensure everything needed is inlcuded and they will submit to UW for final approval. I was in your same shoes and after reading through countless posts, I was nervous as well. I received an "Approved/Eligible" in the AUS. Got excited, but then found out it still needs a human to sign off (UW). I was in UW for 4 days before I received my final approval. No worries as long as your LO was upfront and put in your information EXACTLY as it was on your documentation, you should be fine.

Mike_B03 · ‎12-12-2012

Thanks for the reply. What's confusing me is that what the LO is telling me is sort of backward...

Basically the LO said we got an "Approve/Eligible" in AUS and a loan processor would contact us by Monday.

I asked "So does that mean we're approved or what happens next?"

They replied back with "The loan is going back to underwriting to issue your approval. Will let you know the minute it comes out of underwriting."

I replied back and asked "Does it go to underwriting first or the loan processor first?"

To which they replied "We will have it out of Underwriting this week and we will then set you up with your Loan Processor."

Can you see where my confusion stems from?

From what I've read, and what you said, from the LO it should go to a Loan Processor and then to Underwriting, no? Or does the Loan Processor work in Underwriting and I'm confusing underwriting (as in department) with underwriter (the person who approved/denies the loan based on the info the loan processor gathers)?

Mike_B03 · ‎12-14-2012

Hey hey we're getting somewhere! We were assigned a Loan Processor today (not that they called us, but it was updated on the online status). Guess that's a good thing, hoping it means we are approved with conditions, and the loan processor will now contact us to get those conditions met.