Pat Snyder, Home Buyer in Horsham, PA

What do you mean by manual?

Asked by Pat Snyder, Horsham, PA Wed Dec 23, 2009

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Alan Openshaw, Mortgage Broker Or Lender, Southampton, PA
Tue Mar 30, 2010
Hello Pat,

In most cases we take your information and submit it through a computerized loan underwriting system that tells us that they will approve the loan subject to a number of conditions. Sometimes the loan is denied because of credit score or excessive debt or possibly other reasons, and sometimes the loan is
" referred " which means the underwriter has to manually underwrite the loan and make their own determination.
That is where you are at according to the mortgage banker. However, given what you have told me you may be able to resolve that issue if I know the whole situation.

Alan 267 992 7276
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Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Thu Feb 25, 2010
Hi, Pat

First off, all loans todays are reviewed by a live underwriter before final approval and clear to close. This done because computers/DU underwriter software only interpet whats put in them and information can be erroneously entered or intentionally manipulated. This is quite common and hopefully not in your case.

That said, when it comes to the specific term manual underwrite, this means there is something about your specific file/loan (i.e. exceedingly high DTI,) that does not allow the software/DU underwriter to approve it and therefore must go before an live underwriter so that he/she can make a determination based on the overall merit of your file.
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Gita Bantwal, Agent, Jamison, PA
Thu Feb 25, 2010
Pat, You have received good answers from the others. If you would like more information about the loan process go to .There are good resources for buyers.
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Al Akerman, Mortgage Broker Or Lender, Lakewood, NJ
Wed Dec 23, 2009
Manual underwriting means that the underwriter looks over you file and check various other aspects of your loan.

This is done when you only qualify marginally. In certain cases, "compensating factors" are taken into account by the underwriter in a manner that can't be done by the standard underwriting software we are required to use in the approval process.

If this doesn't answer your question then please let me know by posting more information.

I hope this was helpful.

Good luck.
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Michael Unger, , Coral Springs, FL
Wed Dec 23, 2009
like most things today the computer is usually the thing that makes it run. No exception here. It is possible to have all of your information fed into the decision making computer and the best case is when your file passes the guidelines set up by the computer system. When that does not happen your files can be evaluated by a real person (manually) to determine if the process goes to the next level, underwritting.
Good luck!

S. Florida
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Mike B, , Raritan, NJ
Wed Dec 23, 2009
Typically, maunal refers to manual underwriting for an FHA loan approval. I would be happy to discuss your scenario with you, you can reach me at or 908 531 6170.
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Dan Rich, , Doylestown, PA
Wed Dec 23, 2009

You have a few different threads going on this, but this is likely what the lender means. See below.

There are two ways that your FHA loan can be underwritten (approved).

The easiest way is to run your application through the 'Automated Underwriting' software that is now available through all major lenders. If your overall credit history and income are sufficient for 'automated' approval, then we will certainly make every attempt to run your loan through the automated software. Automated approval is preferred simply because it allows the lender to basically skip the traditional underwriting process. In other words, if we have automated approval, then the lender simply has to verify that the information we listed in your application is accurate.

However, the fact is that the vast majority of my clients do NOT have sufficient credit to be approved by the automated software, and therefore most of my FHA loans require "traditional underwriting" - also known as manual underwriting. Traditional underwriting simply is the way underwriters had to review files BEFORE we had computers .... and they are still doing exactly this same process for many FHA loan files to this day.
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