What are possible conditions

[wendlan]

We have an accepted offer and minor repairs are being done after the inspection..I got an email that says we should have an official approval and list of conditions by early next week. What could conditions be? Any examples? We are in manual underwriting.

[mynameainttracy]

Ours were:

1) Two most recent paystubs for each of you
2) W2’s from 2013 and 2012
3) Navy FCU July and August statements (ALL PAGES of statement)
4) Husband's most recent quarterly IRA statement
5) Bankruptcy and discharge documents
6) Signed and dated explanation regarding credit issues and filing of bankruptcy
7) DD214 (because we were doing a VA loan)
8) Name and phone # of your landlord

[DallasLoanGuy]

anything the loan officer didnt document

[Anonymous]

Your first born child, etc.

[EW800]

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@Anonymous wrote:

Your first born child, etc.

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Pretty much!  

[wendlan]

Thank you, I guess I have to wait and see next week. For my initial preapproval I sent alot of information. Maybe they won't want much more. Is there an average time it takes for manual underwriting? I guess it depends what they request. We went to underwriting April 27th but don't have a closing date till June 15th, I would like it sooner of course!

[Shann0n_marie]

Basically now that there is an offer accepted, there will be official loan disclosures issued with property address and all of the previously gathered documentation will be submitted to Underwriting to be placed in line for an Underwriter to reiew your credit, income and collateral.

I am an Underwriter and have been in the business about 14 years.    We may ask for the reason your YTD income does not support base, need clarification from employers on certain deductions, proof of your 2014 tax liability paid... letter of explanation on credit inquiries or credit history... a copy of your homeowners insurance quote...

What type of loan are you getting?  It is very rare that a loan is underwritten manually these days.  Unless you're getting an FHA loan and something within you credit required a manual downgrade.

Anyhow, good luck!  Purchasing a home is an exciting time!  I'm assuming you got a PreApproval letter prior to?

[QueenBeeOC]

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@Shann0n_marie wrote:

Basically now that there is an offer accepted, there will be official loan disclosures issued with property address and all of the previously gathered documentation will be submitted to Underwriting to be placed in line for an Underwriter to reiew your credit, income and collateral.

I am an Underwriter and have been in the business about 14 years.    We may ask for the reason your YTD income does not support base, need clarification from employers on certain deductions, proof of your 2014 tax liability paid... letter of explanation on credit inquiries or credit history... a copy of your homeowners insurance quote...

What type of loan are you getting?  It is very rare that a loan is underwritten manually these days.  Unless you're getting an FHA loan and something within you credit required a manual downgrade.

Anyhow, good luck!  Purchasing a home is an exciting time!  I'm assuming you got a PreApproval letter prior to?

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Can you explain what you mean by a "manual downgrade"? I do have an FHA loan and I am waiting for another potential round of underwriting

[Shann0n_marie]

Ok, so usually a manulal downgrade occurs when the AUS (automated underwriting service) app does not recognize certain items within your credit report and take them into accounnt.  An example would be if you had a BK and a Foreclosure, or tons of lates but they were included in your BK, etc.  It is not necessarily a bad thing to have it downgraded... it often gives the underwriter more flexibility than when underwritten through the AUS. The only bad thing is that the DTI (debt to income ratio) is constricted to a certain % - usually 45%, whereas a loan that is underwritten through the AUS has more flexibility, as long the decision is returned as Approve/Eligible.

What does your credit profile look like?

[Anonymous]

Sorry to barge in here but I have a question.

If you have approval from the AUS and it doesn't get downgraded to manual, what exactly is the underwriter doing? I understand a human has to review everything, but are they just taking the AUS for face value and verifying all the documents are there and the info matches?