Tracking two loan applications for a "back up"

[Anonymous]

Hello there-

My BF and I have done a lot of work to move our mortgage process forward.  All disputes removed from my report (mine is the one that will count), gathered the mountain of paperwork needed to go to UW, we have an AUS approval on our application.   We want to move forward to the UW phase (like, next week...ekk!) with the lender our broker has identified (MB Bank).  

But I'm having a  fear of the UW process in general.  I'm a first timer, so UW is the great unknown and it scares the dickens out of me.  I've got one collection open that's $230, a couple of late payments on car loans about 6 years ago, one 30 day late last year (opps), a write off for $130 in 2013, and an overdraft on my checkng acct.  in Jan. of this year.  Mid fico is 674.  Good DTI, strong employment/income. 

Is my fear of UW irrational?  I'm considering getting all documents uploaded adn the application in with a second lender *just in case* first one derails.  Is this ok?  And if I do this as a back up, will I have to pay for a second appraisal or can I use the one we will pay for in the current process?

Thanks in advance.  Its going to be a long few weeks!

[StartingOver10]

You pay for a new appraisal with the second application. So you would end up paying twice.

Are you seeking another lender because of something this lender did in the process? If not, it seems like a waste of money and time - unless your first lender is a big box bank.

[Sassy_Taurus]

I switched lenders on a FHA loan and my appraisal was transferred.

[StartingOver10]

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@Sassy_Taurus wrote:
I switched lenders on a FHA loan and my appraisal was transferred.

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That is because the appraisal sticks with the property for 120 days on a FHA loan.  Not for a conventional loan. 

[Anonymous]

Yah, this being a conventional loan, seems like we'd have to pay twice. I think my over abundance of caution is simply caused by my fear of underwriting, and that everything basically lands I. The hands of one person. That seems pretty random and arbitrary. Common sense says to have a Plan B. But it will cost $500 it seems ( the price of an appraisal in our market)....

[Anonymous]

So up above it says you're working with a broker. Then you should relax a little.....

How this works is, the broker doesn't get paid unless you close your loan. And the broker wants to get paid so they package up your loan and send it to one of their lenders that best matches your profile so you get the loan, close the loan and then they get paid. It's in eberyones best interest to close the loan.

Call your broker if you're worried, express your concerns and see what they say.

[_NERD]

ksb1: thanks. That was helpful to me and DW.

[Anonymous]

Well, we've decided to move forward ith the MB Bank loan UW process, and simply have all documents ready to go to the second option IF somehow the MB UW process stalls for some reason.  It makes me feel better to have a back up plan.  It has nothign to to with MB Bank at all.....it has more to do with my fear of one person (the Underwriter) having the ability to sink or not sink this loan.   Plan B will let me sleep better for the next few weeks, even if it would cost me another $500 for a second appraisal.

Whew!  I'm going to lose weight over the next few weeks from the sheer worry of it!