How Automated Underwriting Systems Work
Show Notes
Automated underwriting systems (AUS) are used by all traditional lenders to determine your eligibility for a home mortgage.
The danger with “automated” underwriting is that there is no real filter to determine whether or not the information being input into the system is accurate.
Most borrowers will not have to worry about automated underwriting issues. If you have anything out of the ordinary with your application like changes in employment or income, not-so-perfect credit, past financial hardship or any other number of things, you will want to make sure you’re working with an experienced loan officer with underwriting guideline experience.
Links and Resources
This topic covers Conventional, FHA, VA and USDA automated underwriting systems. Both Fannie Mae and Freddie Mac automated underwriting systems can process Conventional, FHA or VA approvals.
This episode of the podcast was inspired by the following article:
Get Your Questions Answered
If you are like most people that visit this website, you’ve got a mortgage problem or an unanswered question, and you’re having trouble getting answers.
We are here to help you get the right answer, the first time, and connect you with an experienced loan officer that can help.
There are several ways to ask questions, and get expert opinions on this website.
- Email me Directly: Simply click the email icon at the top of the site. These questions come directly to me and are answered very quickly.
- Leave a Comment: Below every article is the option to leave a comment or question. We see these comments and questions in real-time and every question is answered.
About the Author
Do You Have Questions About Qualifying?
Have Questions or Comments?
Hello I own a home outright and looking at buying second home I have 70% down so I don’t want a appraisal my lender is insisting on appraisal
Hi Trish, 70% down on a second home surprises me that you are not getting an appraisal waiver. I would definitely get a second opinion. You are only going to get the waiver if you are using conventional financing. We typically run the loan through both Fannie Mae and Freddie Mac automated underwriting systems to see if either one or both offer the inspection waiver.
It sounds to me like this could be an overlay from the bank you’re working with. I suggest a second opinion. If you would like, shoot me an email to scott@findmywayhome.com and let me know what State you’re in. I can introduce you to an experienced mortgage broker friend of mine that I know and trust.
Hope this helps?