Thread: How accurate are brokers/lenders?

I'm curious . . . when a mortgage broker sends your information to a lender, and that lender responds stating they will give you a loan for this rate, with this much down, etc., how accurate is that?

In other words, is that pretty much saying that unless something drastic changes, you are good to go for the loan? Or, does someone else need to make a decision on it?

Thanks

Originally posted by jrp32
I'm curious . . . when a mortgage broker sends your information to a lender, and that lender responds stating they will give you a loan for this rate, with this much down, etc., how accurate is that?

In other words, is that pretty much saying that unless something drastic changes, you are good to go for the loan? Or, does someone else need to make a decision on it?

Thanks

jrp32

In most cases once you get an approval from a lender then you are basically good to go. The major caveat being that the underwriter has the absolute final say and the underwriter doesn't get involved until the very end. Usually the underwriter will approve the loan as well, but I have seen and had cases where the underwriter did take an approved loan and deny it. If the borrower can correct why then the loan will be approved.

Hope this helps.


fla-tan

This does help. Being the novice I am at this, I wasn't even aware that there is a difference between an underwriter and a lender. Silly, I'm sure. Still trying to figure this stuff out . . .

Thanks!

Originally posted by jrp32
This does help. Being the novice I am at this, I wasn't even aware that there is a difference between an underwriter and a lender. Silly, I'm sure. Still trying to figure this stuff out . . .

Thanks!

jrp

The underwriter generally works for the lender, though sometimes the underwriter will operate as a contractor. It is the underwriter that makes the final decision on the loan. The underwriter is the person who looks at all three credit reports and also at all supporting documentation and determines whether or not the loan falls within acceptable range of the lender's criterea.


fla-tan

With that understood , fla-tan, does this mean generally you get a better scope of the situation with mortgage firms that have "in-house underwriting"?

Thanks!

Originally posted by jrp32
With that understood , fla-tan, does this mean generally you get a better scope of the situation with mortgage firms that have "in-house underwriting"?

Thanks!

jrp

Not really. Contract underwriting companies usually work within the guidlines pretty well.

fla-tan

when you say the underwriter gets involved at the very end do you mean after you lock or the day of closing. I finally locked on a loan that is set to close on the 18th and the day I locked I noticed all 3 credit reports were pulled from Standard Federal Bank, does that mean they will pull them again in 2 weeks or will they review the ones pulled a week ago when I locked?

Originally posted by karak
when you say the underwriter gets involved at the very end do you mean after you lock or the day of closing. I finally locked on a loan that is set to close on the 18th and the day I locked I noticed all 3 credit reports were pulled from Standard Federal Bank, does that mean they will pull them again in 2 weeks or will they review the ones pulled a week ago when I locked?

karak

Each lender does it a little differently. Most will pull when they do the initial approval that is the report that is used to make your approval with. Many lenders will also pull a report the day before or the day of closing to make sure there has been no material change.


fla-tan