Why Did I Already Give Them All This?
Because underwriting verifies and analyzes the documentation.
A loan officer collecting documents is not the same thing as final underwriting approval.
What Is Conditional Approval?
Conditional approval means the file is generally moving toward approval but additional items must be satisfied.
Conditions could include:
- Updated paystub
- Bank statement
- Employment verification
- Explanation letter
- Insurance
- Appraisal item
- Source-of-funds documentation
Why Does Underwriting Ask for Weird Things?
Because the lender must document the loan file.
A deposit that seems normal to you may require explanation because underwriting needs to verify the source.
What Is Automated Underwriting?
Many mortgage programs use automated underwriting systems to analyze borrower and loan data and generate findings.
For FHA, HUD currently uses its TOTAL Scorecard in conjunction with approved automated underwriting systems for most forward mortgage transactions. System usage and rules can change, so confirm the current process with your lender.
Automated approval still does not mean the lender skips documentation.
What Can Cause Problems?
- Income cannot be verified
- New debt
- Credit change
- Unexplained funds
- Property issue
- Appraisal issue
- Insurance issue
Most of these are solvable with time and documentation, which is why the rule during escrow is simple: no big financial changes without telling your lender first.
How Lisa Helps
Lisa is a Nevada REALTOR®, not a lender or underwriter. She cannot approve, condition or deny a loan, and she does not see inside the underwriting file.
What she controls is the real estate process around the loan: keeping inspection, appraisal access, title and closing dates moving as the lender needs them, brokering the contingencies and deadline language that give underwriting time, and telling clients plainly when the lender needs to be consulted before any financial change.
