- July 23, 2011 at 5:41 am #42123
Our UW approval came back with some conditions and closing conditions. Is this common?
The conditions were to show the most up to date bank statements, explain big deposits, Ameridream paperwork, and additional employment verifications. The closing conditions were various ones including bringing the HUD statement for the sell of our current home.
After we give the mortgage company all of that, is that it? Will we really have the loan? I’m worried about being homeless!July 23, 2011 at 6:22 am #182725
Yes it is common for conditions and closing conditions to be part of the loan approval process. What they are asking for is very common. The quicker you can get them those documents the better and more smoothly the process will be.
After the mortgage company receives all the documents they will review them and the approval of the loan will hinge on the result of that review. Be sure to keep by the phone in case they have anmy questions.July 23, 2011 at 7:13 am #182726
Once the underwriting is completed, the lending institution will ask for the underwriting conditions to be cleared. They want to see the bank statements, employment verification to make sure you have the funds necessary to make the monthly payments so this is very common. They also want to see the hud probably for proof of deposit on the new purchase, but that’s a guess. This big deposit is common, banks want to make sure your not laundering money. Once conditions are cleared by the bank, you should receive a clear to close from the bank. This sounds like your selling your current home and purchasing a new one, if this is correct, you’ll of course have to complete the sale first, especially if your using the proceeds as a down payment on the new home. The only holdup that could come about is a title issue, but once the bank clears conditions, your good to go from the banks endJuly 23, 2011 at 7:24 am #182727
Conditional loan approval is just that. You need to justify the conditions the underwriter has set forth. If you can without any hanky panky, you should be good to go.
The “big deposits” may be your biggest hurdle, but if you can substantiate them without further questions will be the kicker. Where are the “bigger deposits coming from? If you can put that to rest, you should be good.
HUD 1 on the sale of an owned home is a no brainer. Same with AmeriDream down payment assistance addendums.
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