Loan UW Question

[CoderBlix]

Our loan application is in UW with Chase. The UW sent back a few conditions one of which is explaining 3 late payments we had on a now closed HELOC. The lates are from 2009 and 2010. Any recommendation on how to explain to the UW the lates? I really have no explanation other than that we just forgot to get them in on time. Any advice here will be greatly appreciated.

 

Also, with Chase once you have "conditions" from the UW does this mean that you are approved but just need to supply supporting documentation or is nothing decided at this point in the process?

 

One other question. They are requesting explanation of large deposits in my sposes account. The deposits are where she moved money from her savings into her checking account to cover day to day expenses...anything particular way we should explain these and could they be a problem?

Edited May 18, 2013 by CoderBlix

[Brian B The Loan Professor]

You will need to do better than we forgot - that is a huge red flag - whats to say you wont forget on the new mortgage - I dont know what to say but give it some substance - as far as approval almost all loans get a conditional approval as long as you can satisfy the conditions you should be able to close -

[CoderBlix]

Thx Brian. The lates occurred around some life events (birth of children...) and we automated the payment to avoid any futures issues. Hopefully that will suffice. Any thoughts on why they are questioning the transfers from savings? Is that considered a red flag?

[Brian B The Loan Professor]

Thats a solid explanation - I would keep your letter simple

 

When it comes to transfers they just want to know the money is legit and can be used -

so long as you can explain everything you should be fine.

B