DU approval and "going to the committee"?

[Rwp2906]

I have been working on my credit score after having some issues and I am finally at a 646 (by mortgage lender pull.) I started the journey at a 538 a year ago with a judgment, several collections and 30 day late payments. All the accounts are now paid and I have no late payments in the past 12 months. I applied for a mortgage through a local broker and he told me I have "DU approval", but because my score is under 650 it has to "go to the committee"....? I had to write a letter explaining my credit issues and after doing so, i realized the excuses were really pretty lame. How important is the DU approval? Does this mean my chances are good should I worry that "the committee" will veto the loan? It's an FHA, I am taking $80,000 cash out on a home with $240,000 in equity. 

Any advice for this newbie? 

[tooleman694]

Im sorry to say but if you are going to committee its probably not going to turn out good.

I learned that DU approval doesnt mean jack, I went to committee as well and now im homeless and waiting it out.

We have to wait things out for several months before we can make it thru underwriting.

[jasimae]

@tooleman--What does "going to the committee" mean?  Does that mean going to underwriting?  What happened with your mortgage process that you eneded up being homeless....as you put it.  That's absolutely terrible.

[Rwp2906]

That's kinda what I was wondering too.... Is "going to the committee" underwriting? What is the process and how long does it usually take?

[Rwp2906]

Heard back and we are APPROVED!!!! Signed all the papers, appraisal this week and closing should be before the end of December! I am still waiting for them to call and say they made a mistake and we are denied....LO says only thing that could go wrong at this point is if we lied about being employed and earning an income (not). Unbelievable!!

I owe my approval to all information I got from this forum. Who needs to pay for credit repair?? You guys rock!!

[tooleman694]

Going to committee means that underwriting denied you, and they are going to review your file in a committee for more input.

Congrats on the Approval!!!!

I still have a couple months before we can close.