Desk underwriting approval

Share on Facebook You receive underwriter approval for a home loan after you meet certain conditions, but you still have work to do before loan funds are disbursed and you become a homeowner.

Desk underwriting approval

Income to Adequately Service the Debt

January 7, Re: Since VHDA has certain regulatory requirements which must also must be met, it is imperative that all Originating Agents thoroughly review this announcement and follow the guidelines provided.

These requirements are also stated in the Loan Submission Cover Letter. This approval will apply to the credit qualifying requirements only i. The standard VOE and current pay stub are still required to document the income for maximum income eligibility purposes.


Three years tax returns are also still required to document that the applicant meets the first time homebuyer requirement. Since these documents are required, the Originating Agent must thoroughly review to ensure compliance with the Mortgage Revenue Bond requirements as well any other information which may effect the data which has been input for the loan approval.

Information such as losses from a business, non-reimbursed employee expenses and other expense which appear on the tax returns or other submitted documentation will require an adjustment to the initial data which was input in LP or DU.

It is imperative that the data input in LP or DU match the documented information in the file. Originating Agents are also reminded that income used for maximum income eligibility purposes and that used for credit qualifying which is input in LP or DU may be different.

What Does A Preliminary Approval Mean? - Mortgage Loan Facts

Standard VHDA property requirements must be met and a complete interior and exterior report must be prepared. The appraisal must provide adequate documentation of any unfinished area.

The approval also applies to credit qualifying issues only i. The following specific program eligibility requirements must still be met: Maximum income Borrower U. Stated program property guidelines must be followed.

Reduced appraisals will be allowed including Form Procedures when using LP or DU approvals: VHDA Approved Delegated Underwriters must review the loan for compliance with all VHDA regulatory requirements and verify that accurate information as supported by the provided documentation was input in the AUS system when obtaining the approval.

System Notification

This may be indicated next to the underwriters name on the Delegated Approval Notice. Originating Agents are expected to include the Feedback Report or Findings report for loans which received a "Refer" or "Refer with Caution" but were subsequently approved by the underwriter.

Questions related to these procedures may be forwarded to anyone in the VHDA underwriting department at Mar 10,  · Underwriter approval shows that you have a lender's approval to close, but it may include some lingering conditions.

Closing on a mortgage entails signing a stack of official documents and preparing the transfer of money and title. A loan file typically makes it to an underwriter's desk after passing a preliminary review.

The four C's - credit, cash, collateral and capacity to repay are critical components of . Re: Acceptance of Loan Prospector and Desktop Underwriter Decisions Effective immediately VHDA will accept the credit approval of FreddieMac's Loan Prospector (LP) and Fannie Mae's Desktop Underwriter (DU) automated underwriting systems.

Jul 19,  · The underwriter will need things like proof of income, explanations of any lapses in employment or any credit issues in the past 10 years, tax records and a list and evidence of assets.

desk underwriting approval

It is the underwriter’s job to ensure the loan meets all of the HUD / FHA requirements, as well as the lender’s requirements for mortgage approval. This is their one and only purpose. The underwriter will do a more thorough examination of the borrower’s credentials, compared to the .

Desktop Underwriter. Desktop Underwriter® (DU®) provides lenders a comprehensive credit risk assessment that determines whether .

What Is DU Automated Approval On Automated Underwriting System