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Just got a very short email from the lender saying my mortgage loan has been approved "with conditions" and that they are interpreting those conditions and will get back to me. I am to "stand by." Okay...conditions that are easy to comply with? Impossible to comply with? Talk about pins and needles! Any thoughts on what typical conditions might be?
This is as bad as when a loved one calls and says "We need to talk" but they want to wait and do it in person.
The conditions could be anything from needing a better copy of your drivers license to a letter of explanation regarding credit inquiries. Literally, it could be a million different things.
Approved with conditions is better then suspened or denied.
Could mean something as simple as proof of income, certified copy of divorce, Letter from employer, something on credit report needs to be discussed....lots of minor stuff most likely. An approval is a good thing, may just need some clarification on something.
Just got a very short email from the lender saying my mortgage loan has been approved "with conditions" and that they are interpreting those conditions and will get back to me. I am to "stand by." Okay...conditions that are easy to comply with? Impossible to comply with? Talk about pins and needles! Any thoughts on what typical conditions might be?
This is as bad as when a loved one calls and says "We need to talk" but they want to wait and do it in person.
Antique55, you should be fine. This is the typical process in getting the loan to the clear-to-close stage. Typical conditions can mean anything from writing a letter of explanation for credit inquiries, or a clearer drivers license. I would comply with whatever the underwriter request. It seems that you are on your way to the closing table. Congratulations!
Actually, that turned out not to be the case. Most of the conditions were easy to comply with. One was not. They need a deferment letter for my student loan since I am still in school half time but the student loan provider will not update deferment letters until 4-6 weeks after classes begin, which would be early to mid October. I have extended my lease on my rental as long as I can and have to be out by the end of the month. And, no, before anyone asks, my landlord will not go month-to-month and there are no short term rentals I could find that would accommodate a large dog. Plus I'd have to pay for moving twice and I can't afford that. So unless I can get the loan approved with the student loan included in my DTI ratio, that's it.
Actually, that turned out not to be the case. Most of the conditions were easy to comply with. One was not. They need a deferment letter for my student loan since I am still in school half time but the student loan provider will not update deferment letters until 4-6 weeks after classes begin, which would be early to mid October. I have extended my lease on my rental as long as I can and have to be out by the end of the month. And, no, before anyone asks, my landlord will not go month-to-month and there are no short term rentals I could find that would accommodate a large dog. Plus I'd have to pay for moving twice and I can't afford that. So unless I can get the loan approved with the student loan included in my DTI ratio, that's it.
When my wife and I got our Mortgage one of the conditions was proof of deferment. First, we printed off the terms of the loan that showed deferment until 12/11, well that turned out not good enough for the Underwriter, so we asked what can we get that will convince you on deferment. It turned out all he really wanted if possible was a letter from the department head/dean/admissions/anyone with a title explaining when they anticipate her graduating. She is not planning to graduate until Spring of 2011 so we got a letter from the Keyboard Chair that she will graduate with her DMA June 2011. That worked for us.
The point of this story is, talk with the lender and see if the UW will take something similar since your loan company will not help you any sooner.
I've already talked with the lender and the only thing the underwriter will accept is documentation from the student loan creditor stating that they have me on deferment for the next year. They WILL provide that, but not until 4-6 weeks after the semester has begun. The alternatives are: (1) seeing if the underwriter will approve the mortgage with the DTI ratio that includes the student loan or (2) waiting until I get the deferment from the creditor which means I'd have to find housing for 2-4 weeks plus pay movers to put my stuff in storage for that length of time and then pay AGAIN to have them move everything into the house. What irks me is that they had this paperwork from the student loan creditor for over a month already. They could have said to start with that this wasn't acceptable and that would at least have given me time to figure out the options. However, in the end the options would have been the same. I just would have had more time to digest it. Don't know if that is necessarily a good thing.
Thanks for posting this discussion, it was very helpful, and I really hope it all has worked out for you in the end! I have a current similar situation- I provided my loan officer letters from my student loan holders showing the payments are deferred for more than 1 year. I just got word that I received my loan approval this evening, and I'm waiting for a call tomorrow to hear my "conditions". Should I expect them to ask for any further proof of the deferment's since I provided deferrment approval letters directly from the companies? The loan officer said they may "verify" it with the credit bureaus, but when I called and asked them, they said they only show the loans as being deferred, but do not show a date... With that, I added a personal statement to all of my bureaus stating the date of the end of deferment. My approval is for a VA loan in Pennsylvania through PNC Bank. Just trying to stay as prepared as possible, and hoping I won't be asked to do/get something more than I already have, so as to make it that much more difficult to get to the closing table on time.. Thanks so much for the help!
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Talk about pins and needles! Any thoughts on what typical conditions might be? 
