Escalated to a higher underwriter?

Question

so my loan officer sent me a text saying that my loan was escalated to a higher underwriter and was to be reviewed as new. What does that mean? Thanks.

Scot Howat · Answer

All you need to do is provide a signed letter of explanation that clearly states your intent with both of these properties.  It has to "make sense", and any supporting documentation you can provide (MLS listing) will help support your points.

Justen Ashcraft · Answer

so the underwriter wants a proof of listing of my current home, which we haven't done because we didn't know if we were going to be approved for this house. Catch 22

Justen Ashcraft · Answer

thanks. That calms my anxiety slightly. I'll report back tomorrow if I hear something.

J Scott · Answer

Not common, but I've seen it happen several times.  In my experiences, the loan has generally been approved, but the escalation can take several days/weeks...

Justen Ashcraft · Answer

is this a common thing, or only in negative situations?

Bill Gulley · Answer

Ahh, that's it, ask to speak to them and assure them you are moving in!!!

Bill Gulley · Answer

It means the loan officer is passing the buck! Usually, not a good sign, if it had been a slam dunk loan it would have been approved, since it's not a slam dunk they want to be able to pass the blame on to someone else. Then they will tell you, if it wasn't approved, how much they disagree with determination and to try again later. Oh, by the way, we have great auto rates now.....  :)

On a more serious side, the above was serious, ask what detail is questionable, what you can do to show your application or property in a better light and if you can discuss the matter with the senior underwriter, often things can be cleared up with a phone call. :)

Justen Ashcraft · Answer

Wells Fargo :(

Michael Smith · Answer

If your loan officer didn't give you a specific reason as to why your file had to be sent to a higher level of underwriting, you should ask him. From the text he sent regarding how long your loan is taking to close, I'm assuming this is one of the mega banks like Wells Fargo or Chase... If so then good luck trying to get a legitimate answer as to what's causing the holdup.

Most of the Loan Originators in my office were with one of these big banks for years and finally decided to leave because they just can't close loans in a reasonable time anymore.

Justen Ashcraft · Answer

I was locked in at 4.25% for 60 days so that may be the case. My lo's manager said it was good to go so they ordered title and whatnot .  It's a triplex, so I don't know if they may be looking into potential fraud or it as an investment property, but I will be living in the lower unit.