Conditional approval question (process)

[Anonymous]

What are my chances of getting a  clear to close after i met my conditions that were sent ? do you think UW may come back with more new conditions ? is it possible to get denied after you get a conditional approval?  I did get through my first UW review and Deskstop UW ... I am a bit worried if any think may pop up, I am working with a bank that sells there loans after a few weeks after closing, thanks

[Anonymous]

Sorry i can not help but this imy exact question.  I submitted all my conditions and am back in underwriting.  My LO told me that we should have a ctc in 24-48 hours but i want to know if you can be denied after a conditional approval and completing all the conditions.  Can anyone chime in with some advise and experience

[Anonymous]

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@Anonymous wrote:

What are my chances of getting a  clear to close after i met my conditions that were sent ? do you think UW may come back with more new conditions ? is it possible to get denied after you get a conditional approval?  I did get through my first UW review and Deskstop UW ... I am a bit worried if any think may pop up, I am working with a bank that sells there loans after a few weeks after closing, thanks

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Without knowing anything else about your file, it's impossible to say whether you'll get more conditions or not.  Yes, it is possible to get denied after conditional approval.  I think it's safe to say it's possible to get denied at any point before you actually close. 

Hang in there and good luck!

[Anonymous]

@foofighter can you explain how someone can be denied after a conditional approval since the uw has already reviewed the file ... Anyone can answer I just don't understand why would someone take you through the conditions stage if they are just going to deny the loan anyway

[swtneka]

I have read a couple of them stories on here... but most were cuz of employment or one found a tax lien that wasnt reported.

[Anonymous]

@stevieswife2011 I was thinking the samething, why would you waste my time and your time by asking for conditions when you know you are not going to approve it. 

[Anonymous]

It's not that they already know they aren't going to approve you.  It's that the conditions can't be met to the lender's satisfaction, or you get a collection or something that pops up, or employment status changes, etc.

If one of your conditions is that you need to have x amount of money in the bank to close, and it has to be properly sourced...and not all the cash is seasoned, or their is a large deposit that can't be sourced, and that money can't be used to close -- leaving you short of what you need, you can be denied.

Or, you could decide that since you're conditionally approved, you're going to apply for a new credit card to get some new furniture.  You could get denied for that.  Maybe you got conditionally approved pending your taxes for the current year being filed and processed by the IRS.  Once the taxes are filed, and you send them to the lender...they discover you are taking a ton of deductions, and your income doesn't qualify...

THere are lots of reasons.  That's why nobody should ever assume they have a long until they've closed on their house. 

[tooleman694]

I only had one round of conditions, they asked for a couple of things and I was cleared to close.

Sometimes though, how you respond to a condition and lead to more conditions. So be very careful not to give info you dont need to.

[StartingOver10]

Toolman is right. I have seen people run out and buy a houseful of furniture after they were approved but before they were closed which killed their approval! Some borrowers don't understand that the approval is based on your financial condition at the time of application and if you have changes that can tank the whole thing.

I have also seen lenders put on conditions that are impossible to perform (but that is very rare). I gave an example the other day in a post where the lender required city sewer and water to a property that is located in an agriculatural area only serviced by well and septic. I have to tell you, that was a first! But it just illustrates that sometimes it can be a lender thing or a borrower thing.

Most of the time the conditions are normal and easy and nothing to worry about. Sometimes the borrower supplies paperwork that prompts other questions, but generally it is just a routine matter.