Underwriting Question (insurance, loan officer, approval, credit) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

iupui1299 · 02-05-2008, 06:32 PM

I just received an e-mail from our loan officer. He stated that we received a pre-approval for our loan but that he is waiting to get clarification on one of the conditions set by the underwriter. So I am not sure what to think....I like that he says we got a pre-approval but the conditions make me nervous........the underwriter that did our loan went home sick....just my luck. Is it normal for an underwriter to set conditions with an approval? We are building our first house and everything is new to us.

renriq02 · 02-05-2008, 07:07 PM

you will always have an approval with conditions.
if you say you make 60k a year....then the U/W will approve with conditions that you actually make 60k. They will verify it, then move on to assets.
Then to credit.....etc.
Once they review your loan docs then they'll give you a final approval
Once they receive the appraisal..and that's reviewed then they will review the title to make sure it's clean. they will require homeowner's insurance etc...and the last step is to give you a 'clear to close' CTC.

iupui1299 · 02-05-2008, 07:17 PM

Thanks for the reply.....I wasn;t sure if it was normal or not. It was manually underwritten and once we get the pre-approval we are locked in with our builder. I just wasn't sure if a pre-approval with conditions was nomal or not. Thansk again!

corel · 02-05-2008, 07:55 PM

You will nearly always have conditions, one condition could be to verify that you are employed, that you have the funds for a down payment (if you are putting money down), for a refi a standard condition is an appraisal with a certain value and a clean title report, etc. usually it is no cause for concern to have conditions to meet for the final approval. It is the norm.

kcpenny · 02-08-2008, 09:36 AM

I'm a loan officer at a top ten bank and that is perfectly normal. As the previous poster stated, you just have to verify what you actually put on your application such as income documents, the value of your property, assets, etc.. As long as that info rings true, you should be good to go. Good luck!