Automated ... redux!

[Anonymous]

Okay, trying again -- this time I will NOT be breaking any rules (or leastways, I'll be doing my durnedest not to!)!

Can someone explain to me the whole "Automated" thing? When someone says "I was approved (or not approved) via automated" do they mean they did (or did not) receive an immediate, instantaneous approval via an online application?

DH apped at three sites last night for a purchase loan. And though we won't be going through them for the loan, we've gotten oodles of emails asking that he sign an "Authorization Form" before they can "process his loan request."

What in $%#@ does that mean?

Does that mean he's been approved via automated? Not AUed? Not even submitted for AU yet? Just REALLY want an understanding of the process and what his scores will have in store for us in getting approved! Right now, we're just really biting our nails on this.

Stupid me, I thought his midscore would be good enough that we'd be a cinch for AU. I've already got my whole family rarin' at the bit for a new home. I just wish I knew what to tell them!

Any opinions or insight MUCH appreciated!!!

[cobaltnv]

Hi Wonderlin.

I looked into lending tree for a loan a couple of years ago. My recollection is that the authorization form allows them to check your credit report. So if you are not planning on using them I would not sign any authorization form.

Cheers 

[ShanetheMortgageMan]

The only time an automated approval is any good is if it comes directly from the automated underwriting system used by the underwriter, and believe me an underwriter isn't looking at the same underwriting findings you'd instantaneously get by completing an online application.  All thatany automated approval that you, as a consumer, can get from a website, means is that you've been "automatically pre-approved, pre-qualfied, and pre-selected, to pre-buy a home based on the pre-application you've submitted."  More or less, you need to talk to a mortgage professional on the phone.

[WannaHouse]

Another thing I think needs to be said, is by applying all over the place, you are risking people pulling your credit reports and lowering your scores. I would simply call and talk to your broker and let him tell you the best advice.