Haven't Heard From Mortage Underwriter?

Hello. I applied for a USDA Guaranteed mortgage from a bank last week. They got all the info they needed, and said I should hear back from them in 3-4 days with an answer. On the fourth day, the LO called to ask about future income on some work I do on the side (I do some musical performances on the side along with teaching, which is my main line of work). I gave my best estimate (with the pandemic and all). And then never heard back. I emailed a day later and asked if it was safe to assume the loan didn't go through since I never heard back in the 3-4 day time frame. Email was never responded to. Sent another email today saying I got a raise from teaching and should be bringing in x amount per month now. No response. 

Everything was solid 743 credit score. 10 year rental history where the rent I'm paying is much more than the loan payment I am seeking. Had a car loan with this bank that I paid off a year early. My DTI I know was creeping up there. between 41 and 43 because I'm not playing out as much these couple months. But again my teaching is solid. I have been doing this for over 2 years, and do it all twelve months out of the year (I teach online for a company from home). Any thoughts?? I was figuring with a USDA loan, it might be a bit easier in approving. 

5 Answers

  • 2 months ago

    Not sure if you are aware, but USDA has an income limit... if you make too MUCH money you will be denied.  However, they have to notify you.   I am a mortgage lender.

  • 2 months ago

    You're not going to hear from the underwriter in 3/4 days.  The application must be processed and if mortgage pre approval is granted, then you must find a home and amoungst other thing the home must be appraised.  If it appraises then it will go to underwriting.

  • 2 months ago

    1. A raise you got in the last few days is not going to be taken into consideration

    2. Having a previous relationship with the bank has no bearing (I'd be concerned about going through a traditional bank for a mortgage; online direct lenders usually have so much better rates)

    3.  A government loan is always more difficult than a conventional loan to obtain.

    4.  The home has to be approved, not just the borrower = are the inspection and appraisal complete

    5. "rental history where the rent I'm paying is much more than the loan payment"

    It better be!!  With rent, you pay rent.  Maybe utilities.  The most maintenance you likely do is buy light blubs. 

    - homeowners insurance is not comparable to the cost of rental insurance.

    - you will have property taxes

    - you have maintenance

    - you will have REPAIRS.

    6. If you are calculating your DTI correctly (based on the loan amount principle + interest; not principle + interest + insurance + property tax) = If I was you, i'd run as fast as I can to cancel this deal, if your DTI was above 40 at the beginning of the pandemic.  You are going to be SO HOUSE POOR!!!

    - your DTI should be at 33 or less!!

    All that said, loans always take longer than expected.  I don't think the fact that the underwriter/loan officer haven't gotten back to you means anything.

  • 2 months ago

    Pre Pandemic DTI was in the 30's. It is in it's current value because there is some I am not receiving from not being able to perform (because of the pandemic).

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  • Anonymous
    2 months ago

    It would be really odd of you to hear from a mortgage underwriter 3-4 days after applying.

    That being said, if you are denied credit, they are supposed to send you a letter explaining that (and why).

    If they won't respond to you, I guess the only thing to do is wait.

    DTI of 41 to 43 is nuts.

    "where the rent I'm paying is much more than the loan payment"    That's the way it should be.  It costs a lot to maintain (and upgrade) a home over time.   The mortgage payment is the cheap part.

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