Satisfy 'Conditional Approval' Conditions Advice

[foggyjack]

Hi Y'all! 

I just wanted to get some advice on satisfying conditions on our conditional approval. 

When the UW requests a 'satisfactory signed credit explanation' for things like recent inquires, etc., I'm assuming I literally type a 'short and sweet' explanation in a word document, date, print, sign document by myself and my husband, scan document as PDF and email to LO?  I've already been told by my LO that the processor will upload all the 'satisfied conditional paperwork' in ONE upload, so I'm to email all documents to LO. 

I just want to make sure this is the correct way to do LOE...thanks in advance to all of your responses!   Thanks!

[DallasLoanGuy]

the lender wants it in writing from you that those inquiries didnt result in new credit that is not reporting to the credit report. THAT should be addressed in the letter.

and you do as you described..... word doc, print, sign, scan to pdf & then email

[foggyjack]

DallasLoanGuy, thank you so much for your quick response!

The only inquires we have to explain are for our loan officer pulling each of our credit reports for our mortgage application, so definitely no new credit. 

I appreciate you letting me know that indeed I literally write it as a letter, sign, scan, PDF and send.  Thanks again!  This board has been so valuable during the process and I'm so appreciative!

[MovingForward_2012]

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@foggyjack wrote:

DallasLoanGuy, thank you so much for your quick response!

The only inquires we have to explain are for our loan officer pulling each of our credit reports for our mortgage application, so definitely no new credit. 

I appreciate you letting me know that indeed I literally write it as a letter, sign, scan, PDF and send.  Thanks again!  This board has been so valuable during the process and I'm so appreciative!

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I wish I could scan pdf, I can only scan in picture format for some unknown reason.  And the computer that converts to pdf, can't connect to my printer/copier/scanner/faxer so I have to send an email to myself with the converted pdf files as attachments and go to the other computer, download them, print, sign, and fax. It has been a nightmare!  Your process should go a lot smoother. :-)

[foggyjack]

Grrr...that sucks!

On my printer, I can scan directly to my email, which does scan as a PDF document, so that definitely saves time.  Not sure you could do this, but when I don't scan directly to my email, but to my computer, I click the 'File' menu and click on 'Print'...on the 'Print' screen, at the bottom left-hand side, I have a 'PDF' tab...I click on it and then I click on 'Save to PDF'...then I just name the file and save it on the computer where I want it located.  I also do this to change a word doc to PDF.  Not sure it matters, but I have a macbook and an HP printer.

[Mike_B03]

These are two examples of Letters of Explanation from this website: http://underwriternotes.com/sample-letter-of-explanation-regarding-inquiries-appear-on-credit-report...

Letter #1: This is a simple letter:

The reason why xyz, abc, mpo appears on my credit is because I was shopping around for the best interest rate. No new account is opened as a result of the credit check. Thank you.

Sincerely,

Borrower’s Name
Signature Date

Letter #2: This one will result in additional information required by lenders:

The reason why (example) Chase, American Express, Home Depot ran my credit is because I open an interest free account with them. GMC ran my credit because I recently purchase a brand new car with them. Thank you.

Sincerely,

Borrower’s Name
Signature Date

If letter #2 applies to you, get ready to provide a copy of statements from all those creditors. Banks will need to add the monthly obligation appears on those statements into your debt ratio and determine your qualification for the loan.

[MovingForward_2012]

Ah!!!! I will have to try that foggy. Thanks!!!!

I also wanted to mention that for the inquiries where no new credit was obtained, my LO just told me to put "No new credit", a one liner like others have said. I did have a couple of inquiries for the new car I got in Nov and I had to put, "New credit for auto lease obtained, account number, balance, and monthly payment on credit report". For the inquiry for new credit card, I had to provide the account number, credit limit, and current balance as it isn't on my credit reports yet and I am forbidden to charge even a pack a gum to it LOL! I provided these at round one, at it is round three so I am assuming it was satisfactory to the underwriter but I won't know for sure until I get clear to close.

[foggyjack]

Thanks, Mike_B03!  These are great!  Simple and to the point! 

Thank goodness I only have to explain the credit pull for my husband and me from our mortgage broker a few weeks ago for this process!

As always, I certainly appreciate everyone's advice...it really humbles me how much everyone on this forum helps and cares about others!  

[MovingForward_2012]

You're welcome foggy. Things are going to go stellar for you. I'll be looking for your clear to close post definitely! :-)

[DallasLoanGuy]

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@MovingForward_2012 wrote:

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@foggyjack wrote:

DallasLoanGuy, thank you so much for your quick response!

The only inquires we have to explain are for our loan officer pulling each of our credit reports for our mortgage application, so definitely no new credit. 

I appreciate you letting me know that indeed I literally write it as a letter, sign, scan, PDF and send.  Thanks again!  This board has been so valuable during the process and I'm so appreciative!

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I wish I could scan pdf, I can only scan in picture format for some unknown reason.  And the computer that converts to pdf, can't connect to my printer/copier/scanner/faxer so I have to send an email to myself with the converted pdf files as attachments and go to the other computer, download them, print, sign, and fax. It has been a nightmare!  Your process should go a lot smoother. :-)

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try updating your scan software?

look into to cutepdf.com and see if that helps.

i use cutepdf all of the time