Begin Your Property Loan Journey
- Past Lesson 7.3 Maintaining Your Loan on the right track
- In this tutorial
- Phases of Underwriting
- The Underwriter’s Job
- Underwriting Results
- Underwriting Conditions
- Next Lesson 8 Closing On The House
Phases of Underwriting
Buyers enter the very first phase of underwriting during preapproval.
VA loan providers generally depend on an “Automated Underwriting System, ” or AUS, to determine a buyer’s preapproval status. An AUS is some type of computer system that immediately evaluates a buyer’s eligibility, centered on a selection of facets.
Don’t assume all qualified debtor will get AUS approval. In those instances, lenders may look at a “manual underwrite, ” which will be an even more involved procedure that typically utilizes more stringent demands.
Various loan providers might have various needs, but, generally speaking, items that can trigger a manual underwrite include a bankruptcy that is previous property property foreclosure; standard on federal financial obligation; belated home loan repayments; and much more.
Besides the AUS assessment, loan providers will re-examine a buyer’s qualifications through the stage that is second of. Continue reading