Been conditionally approved but underwriter didn’t give final approval. Anxious!
So this may be a long post but in February i applied for a mortgage and was pre approved. My lender is going with the usda rural development loan. After sending in my documents and w-2 and tax transcripts i was conditionally approved with the condition of bank statements for the last two years to close. I sent that and it went to underwriting for final approval. This process has been around 3 months as it's a new construction home and it was being built. The problem now though is that i couldn't get final approval because on my 2020 tax returns there are reported business losses for self employment which i have no plans of continuing going into 2021. I am a w-2 employee that's an entirely different entity than the self employment i reported. I've been here 3 years and make more than enough for the program I'm applying for. But now I'm scared that that a letter of explanation won't be enough to explain the loss and it May decrease my income affecting my dti and the loan being denied. This is all a week before closing which is crazy! Everything was going great! By the way credit score is all above 700. With $15K in the bank. Student loans 50K with an auto loan 17K. I make 72K a year. Applying for 215K home. 2.75 rate with dp assistance
Re: Been conditionally approved but underwriter didn’t give final approval. Anxious!
When you submitted the tax documents for final approval, did the processor come back asking for a letter explaining the situation? If so I think you are in good shape. They probably just need the letter for your file.
Re: Been conditionally approved but underwriter didn’t give final approval. Anxious!
Did you ask the processor if the letter was good enough? When we went thru underwriting I had a couple things I had to explain. I asked the processor if the letters were enough and I was very nervous about everything. The processor explained everything and said they just needed the letter.
