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Question to..and about FHA under-writers.
Hi,
I'm glad to have discovered this forum, been lurking around for a couple weeks. My hubby and I are currently awaiting approval from the uw. I have a few questions I'd like to have answer since I'm so nervous about this entire process. We have given notice to our landlord once our offer was accepted because in our lease contract it stipulates we must give at least 60 days notice. We strongly felt that the house wouldn't rent immediately since it's had a history of being difficult to rent due to the economy, however, we found out yesterday that the landlord has already found a renter and they are to definitely move in on June 1st. We have to be out by then. Being that it's the first time we've ever purchased a home, every step is a new thing to us. We had no idea that after you get pre-approval from your mortgage broker (which we found out means nothing) our peperwork had to go through an under-writing process. So here we are waiting to see if we're approved, with a closing date just a couple weeks away, and no where to live if this doesn't go through.
My questions are as follows:
-Do under-writers do paperwork on the weekends? we'd like to know if there's even the slightest possibility that we'll soon be in line for reviewing.
- Do UW take into consideration the closing date and try to make the deadline?
-I had a nightmare last night that our debt to income ratio was not up to par, but our mortgage broker would not have submitted our paperwork unless it was, correct?
-If this is not approved, can our MB submit to another UW? does it go on file that you were already denied by a UW?
- Can one contact the UW directly, and or do they contact you? or is everything done anonymously?
Answers are kindly appreciated. Thank you!
Re: Question to..and about FHA under-writers.
Hi - I can answer some of your questions. We are in a similar situation. FHA mortgage, lease expiring May 30, gave 60 days notice etc. Our actual underwriting process to a little over a week, which I think is pretty standard if you're able to supply the materials they request in a timely manner. My answers are below...
My questions are as follows:
-Do under-writers do paperwork on the weekends? we'd like to know if there's even the slightest possibility that we'll soon be in line for reviewing.
It depends on the company, I think. Ours did not work weekends, but or mortgage broker made himself available on weekends to give updates and to make sure the underwriters got some of the additional paperwork they requested.- Do UW take into consideration the closing date and try to make the deadline?
Yes. But by the same token, the ball is somewhat in your court. If they request additional paperwork get it to them ASAP. Try to anticipate what they may need. For us they needed additional proof of employment and my finance's pay cycle because he is a teacher.
-I had a nightmare last night that our debt to income ratio was not up to par, but our mortgage broker would not have submitted our paperwork unless it was, correct?
If you have a good broker they would not have submitted your paperwork. The money they make is tied to your mortgage approval, so they would not waste their time.
-If this is not approved, can our MB submit to another UW? does it go on file that you were already denied by a UW?
Not sure- Can one contact the UW directly, and or do they contact you? or is everything done anonymously?
Ours contacted us directly to secure additional paperwork, so we would contact him back.
I mean to ask..were you approved? or are you still waiting for a response?
If you've been working with a mortgage broker you probably would have been told if there was anything to worry about.
Brokers are typically available on weekends, but underwriters are usually not.They do try to make deadlines - they have a reputation and agents won't refer them to their buyers if they're known for missing them.
Approval is very objective so if you are not approved, it was because you didn't meet the bank's criteria. You wouldn't re-apply hoping that the new underwriter was less grumpy, because the underlying issue would still be there.
You absolutely should NOT contact the underwriter directly unless they contact you. Usually there is a processing person who should request any documents they need from you. That person will get the info from the broker, put it all in a nice packet and give it to the underwriter. Their job is to do their very best to make sure your loan only has to be reviewed once and that the underwriters don't come back asking for anything else.
The bank wants your business and will do everything they can to give you the loan. If you haven't already asked your mortgage broker if you have anything to be concerned about, you should. It might put your mind at ease.
Yes, we have, but to be honest, I don't put all my faith in him, not because he doesn't seem like a good broker, but because this is our first experience and we do not know this person other than dealing with him to obtain this loan. He's also not available on weekends
but to be fair, he's been very kind in answering all of our questions, and positive we will get the loan.Still, doubts remain..
We couldn't contact the UW even if we wanted to because we don't know who this person is, which is why I was asking because it feels like the UW is the great wizard of Oz. lol
thanks for all the info. It is very helpful
- Not all underwriters work weekends; we do at my company. Sometimes we're working at 2am. Some of the FHA online systems shut down over night, so we don't have full access to every database though.
-We try to accomodate the closing date, but this is subject to the borrower furnishing the documentation. Also means coordinating with the loan officer and the processor. That also means coordinating with HUD, title companies, home owners insurance agents, appraisers, etc.
-Loan officers don't know how to accurately calculate income. They don't even know how to read tax returns correctly. You would be surprised how many people don't qualify from undisclosed debts and writing off too much on their tax returns. I have a file right now where the borrower is "a millionaire" and a "wealthy prominent local figure". Her debt to income ratio is 299%. We finally got her loan to go through, but they only way how is to use depreciation from a business she owns 32% of.
-You can try going to another lender. Although we do underwrite to FHA guidelines, we also have to follow the guidelines our investors put forth (investor overlays). If we can't follow their guidelines, we can't sell the loan, and thus we don't approve it.
-I've never heard of or worked for a company where a borrower can contact the underwriter. That is the point of a processor - they mediate. Underwriters need to remain neutral, and communication from the borrower interferes with that. All communication that I receive from you must be in the form of a letter, which you must sign. Again, there has to be a paper trail. If you call and explain something to me, I don't have to the documentation to support it.