Would loan officer even bother to send file to underwriting?

[WINNING]

Hello,

I've been faithfully reading the posts but this is the first post I have made.  I have been waiting for a pre-approval decision for two weeks now.  My mid score was 606.  Would a loan officer even bother to send my file for full underwriting for preapproval if they didn't think it could get approved?  I guess not hearing anything yet is a good sign...

[Ron6262]

    Are you talking just a basic pre-approval to start shopping?  Those usually only take a few mins.  My LO did mine over the phone and emailed it to me while we were still talking.  He just ran my credit, asked me how much I made a month, what I had in saving and that was it.   My load didnt go to UW until we had a purchase agreement on a house.  Then it went to approval/conditional approval stage. 

     I would call and see what the deal is??

[Booner72]

Yes, if you are just waiting for a preapproval letter I'd say no news is not good news and you should continue to look or work on your score.....

[imandy]

Whatever you do do NOT use this LO!!! They are dishonest! Any honest LO would look at your credit and tell you right over the phone you don't qualify, give you some advise and tell you to call back when you hit 640 or 620 if you like to gamble.

Anyone that did not tell you this right out of the gate is not honest and there are pages and pages of old threads on here from people who had LO's do the same thing that's happening to you, collecting an application fee and telling you tough luck!

[StartingOver10]

Sounds like you got an "application taker" rather than an experienced LO.

An "application taker" is my name for those LO's that don't really work the file, all they do is fill in the form blanks. As the others above pointed out, its a very bad sign that you didn't have an approval right away.  For a real pre-approval, it is best to have the loan officer have a copy of all of your documentation (tax returns, W-2's, paystubs etc). The more they have the stronger your pre-approval. But, based on your post, it sounds like you have some credit report work to do to increase your score to qualify.

[WINNING]

I am doing what they call a head start loan where the file goes through full underwriting before issuing a pre approval.  If approved and I find a house, then the only conditions on approval would be for the actual house that I find.. then they state that closing can be as soon as two weeks to a month after that.

[WINNING]

It didn't seem out of the norm for some people to wait a couple weeks for a pre approval so I wans't sure... thanks for the info.

[WINNING]

StartingOver10,

Allegedly she is the loan officer for community programs offered by this bank.. She did request everything under the sun, and I was advised that by her being thorough in the beginning she was a good loan officer and predicting what would be requested.. It took about a week to get her all the documents and they she forwarded my file.  Because it is a special community mortgage product, she stated it would have to go through manual underwriting which could take up to two weeks.  I am trying to be patient because I know that my scores are not very good but we need a home for our growing family!  If I am denied for this loan, I will work on paying down some credit cards..

[cracksmeup]

Some lenders, Wells Fargo is the one that comes to mind, will go down to a 600 credit score, so I don't believe that your LO was being dishonest with you.  When your score is in the lower range, they can't put it through automatic underwriting.  That is the one that can be done in minutes.  When your file is a little trickier, they have to have it go through manual underwriting.  It sounds like that is where you're at right now.  Do you know if you've had any new collections or late payment in the last 12 months? Those things are pretty much an instant denial.  If not, I'd say stay positive.  Good luck

[imandy]

Well I do wish you well but I still do not believe that this LO is being honest with you, espeically now after you're telling me she is telling you she has a special title and some sort of super power LOL

You would be the first person on Myfico (since 2007) that was able to get a loan with those kinds of scores. But here's hoping you are!