What is the difference between loan prospector and desktop underwriter

This will include income, employment history, credit history, asset information, and more. Once this information is put into a loan origination system, it is imported into one of the automated underwriting systems, the LP or DU. And, depending on existing integrations with 3rd party information providers, the system will automatically validate those inputs.

The system then spits out an automatic approval or denial along with guidance on what documentation is needed to verify the inputs. The system will also indicate whether the auto-validation was successful, if applicable. As mentioned, auto-validation depends on integrations. The mortgage underwriter then verifies the submitted information and runs the DU or LP again.

Finally, based on the submitted documentation and guidelines from the AUS, the underwriter issues conditions. Once you satisfy those conditions, the loan is ready to close. It's worth emphasizing that an initial DU or LP approval from your loan officer doesn't mean you're guaranteed to be approved for the mortgage.

Though it is a good sign. If you've received an initial AUS approval the underwriter still needs to verify your documentation before final approval.

With the information from a DU and LP in hand, borrowers and loan officers get a better idea of whether or not a loan will be approved. That said, in reality, an experienced mortgage loan officer will know what documentation a borrower needs to provide in advance. Still, an automated underwriting system is a great way to double-check and avoid missing something before the loan goes to the underwriter.

Monday — Friday a. But Freddie Mac may approve that file turned down by Fannie Mae. Freddie Mac is more lenient with mortgage loan applicants with poor credit history and lower credit scores.

Freddie Mac is also laxer on higher debt to income ratios. Freddie Mac is also more aggressive and understanding of mortgage applicants who have limited credit trade lines and credit history.

Fannie Mae likes to see a minimum of 3 aged credit tradelines. When choosing a lender, make sure that the particular mortgage lender you choose is able to do both Fannie Mae and Freddie Mac mortgage loans.

This is an unrelated question. How long following an investment property short sale must one wait before they can refinance a commercial loan? Thank you. Investment properties are not conforming loans and do not fall into the waiting period guidelines for Fannie Mae and Freddie Mac.

As long as you have a good letter of explanation, you should not have a waiting period after a short sale on a commercial property, especially if the commercial loan was a non-recourse loan. Depending on the commercial lender, there may be waiting period after a short sale on commercial loans, however, most commercial loans are portfolio loans where the lender will hold the loan in their portfolio.

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