Loan won't pass AUS ****** UPDATE*******

[Anonymous]

We are going through the AUS problem now. We recieved our pre approval letter last week for our sellers attorney. Everything was good until Yesterday. Now the loan originator can't get an approval through automated underwriting. Our LO says he can't understand why its been rejected when it was approved before. He said there are 2 old accounts with zero balance that are on all 3 credit reports with the comment seller disputed outcome. The balances are $0 on both of these accounts. My husband called tansunion and equifax last night and was told they will remove the comments. He will be calling Experian today. Aside from that our LO is stumped on what is wrong.

Husband makes $100k a year 

House is 50K

We are putting 5% down

Closing cost estimated at $6200

We are going Conventional on a 15 year loan.

DTI is within range per LO

Middle credit score is 633

Any suggestions because we have no clue on what to do now. We have the house under contract and have a close date of 2/28 per the contract.

As of this afternoon we were told we were approved through the AUS! Now for the next step!

[NC_Mtg_Loaner]

Do you have the specific reason from the AUS as to the refer?

The AUS findings always state why the file does not pass.

[Anonymous]

The LO told us he did not recieve a reason why it did not pass but messaged the company and asked why. We were also informed yester day that the LO actully went out to the property with a relator friend of his and the property is worth about 20k more then what we are buying it for. We are now wondering why the LO went out to the property and why all of the sudden AUS is not approving my husbands loan. 

---

@NC_Mtg_Loaner wrote:

Do you have the specific reason from the AUS as to the refer?

The AUS findings always state why the file does not pass.

---

No we do not have a specific reason from the AUS.

[Revelate]

I don't know modern lending but as of a few years ago: get those comments removed.

I doubt that has changed TBH, still the same problems with disputes in the bureau dataset that existed from when I knew that was policy.

[Anonymous]

My husband started on doing that as soon as he got home last night. He has to still get a hold of experian to get the comments removed but the other two agencies told him it will take 24-72 hours.

[homeloanexpert]

An a experienced LO can usually see why the DU will not approve it. When it doesn't, sometimes there are some tweaks you can make to get it to approve it, if not there are other options available. Believe me.

[NC_Mtg_Loaner]

How much money/assets do you have for reserves?

Have you tried running DU or LPA with a higher down payment?  say 10%?

It seems fishy that your LO can't determine why AUS doesn't approve the loan.   Can he provide you those AUS results?  

[donkort]

If I'm not mistaken, you're getting a $47,500 loan.

At 3.92%, your monthly payment would be $347.  Plus I guess you would have mortgage insurance.  And, of course, taxes.

If overall DTI is required to be 43%, your monthly obligations would be $3,583.19, based on a $100,000 yearly salary. 

As others stated, I would get rid of the disputes.   I doubt very much that your DTI is above 43%. 

Yep, of course "reserves" are important, too. 

[Anonymous]

He has not provided us with anything yet. He said yesterday that he would know more today. I just don't know what to think at this point. We did find out our loan officer was looking at the property on Friday with a relator friend.

[donkort]

I think you're in pretty good shape if the disputes are gotten rid of.