hi my application has been referred, my credit history and score is not that bad, but have not been on voters registry. what causes it to be referred and does this mean a big no no and i wont get the mortgage...(in the U.K)
2007-10-23 22:40:43 · 3 answers · asked by PÒL 4 in Business & Finance ➔ Renting & Real Estate
There are a few different terms utilized to reference Fannie Mae's desktop underwriting system. This is the standard underwriting system that is used to automatically approve loans that fall under conforming or "prime" guidelines. The acronym for desktop underwriter is DU. Some companies use the acronym AUS for their own proprietary automated underwriting system.
Regardless, the term "refer" is one of the terms used. The terms are as follows;
Approve/Eligible - This is the best approval possible.
EAI - Expanded Approval I - This means that you have been approved but under expanded criteria and a higher rate is attached to compensate the lender for the higher risk involved.
EAII - Expanded Approval II means the same as level one with an even higher rate attached, due to the higher risk for the lender.
EAIII - You can see where this is going. Not too many lenders take on EAIII borrowers.
Refer/Eligible - This means your loan is eligible for approval, but a human set of eyes needs to look at it first. An underwriter is going to be looking for at least one compensating factor which will turn this into an approval. Compensating factors are; many years at the same job, good credit, or no lates if your score is lower than normal, or just lots of reserves ( money in the bank or 401k).
Refer with caution - If you have this, it pretty much means the loan is dead and there are too many factors against you to pursue the loan.
I hope you fall into the Refer/Eligible and wish you the best of luck.
2007-10-25 13:44:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Well, I see the Bostonian has beat me up this morning...lol....nevertheless, he's right. Go to the professionals to find out, there are many reasons this could have occurred. It might not even be YOU, but the home you are financing! Good Luck!!
2007-10-24 07:44:30 · answer #2 · answered by Barbara 5 · 0⤊ 0⤋
It could mean a number of things. You'll have to ask.
2007-10-24 06:37:07 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋