The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
Best of luck with everything. A manual underwrite is not uncommon.
All loans are manually underwritten. That simply means the underwriter will verify and double check EVERYTHING including your income, employment, credit, assets, appraisal, etc. Typically, if the loan officer cannot obtain an automated approval he/she will forward the file to an underwriter in hopes the underwriter will agree to approve the loan even though the computer denied it. The borrower must have a strong case in their favor, otherwise the loan officer will not waste the underwriter's time.
Did the automated system reject your application? Is there a specific reason for this question? Just need a little more info here....