Buying A Home
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Talk to me about underwriting
Ok so DH and I were preapproved. We recently signed a contract to buy a preexisting new home (built by a local builder and the individuals loan building the house fell through). So the house is new but has never been lived in.
We go to sign our final paperwork tomorrow for the underwriting process. What exactly happens during underwriting? Should I be nervous about this process? I have heard horror stories about people going to underwriting and everything falling apart. Or am I just being a worry wort?
TIA!
Re: Talk to me about underwriting
I am a processor, and work directly with underwriting to get loans approved. Essentially, they are making sure that your home is acceptable collateral to the bank, make sure you meet credit qualifying criteria, and have a stable work history with continuity of increasing/stable income.
Lots of loans fall apart in underwriting, mainly due to income/debt issues as well as appraisal issues. You might hear a lot of horror stories about self employed borrowers, but the issue is that most of them write off so much, they don't have the income to qualify. They also have the authority to slash values on appraisal due to the appraiser not using appropriate comps, or giving unfair adjustments in value that can not be supported.
We aren't trying to kill deals, but there are STILL so many borrowers (and loan officers) who purposely cover things up in order to submit the least amount of documentation possible. Unfortunately there is a lot of dishonesty in this business, hence the tight guidelines.