What is DU Approval for a Fannie Mae Home Loan

Desktop Underwriter or DU as it is called is an automated underwriting system developed by Fannie Mae to help homeowners get automated underwriting on their Palmdale home loan application. It determines if the loan is eligible for delivery to Fannie Mae. The same system may be used to get approval for FHA home loans Palmdale.

The DU system uses information from the application, the credit report and provides a list of documents and conditions to approve the home loan application. It basically accesses the borrowers risk profile. Of course, the outcome of the DU approval is based on the information submitted with the home loan application.

The Credit Risk factors are evaluated by Fannie Mae DU to determine just what the Borrowers credit utilization is, public records, credit inquiries, the property types and if there is a co-borrower. DU will issue a Finding report that is a summary of the approval and steps required to process the file. It will also issue a Analysis report that will display the key values used in the DU Underwriting.

Approve/ Eligible Home Loans

Based on the Borrowers information, if you get an Approve/ eligible the loan appears to meet the risk criteria required to approve the new Valencia home loan. Ineligible would mean there is more credit risk that Fannie Mae allows.

There are Potential Red Flags that might come up in the DU. Some of them are Excessive submissions, Valuation risk, manufactured homes, or maybe liability issues. Each of these must be dealt with before an approval can be attained.

DU Findings

The Findings section identify the risk factors that went into the approval recommendation. These are important when speaking to the Borrower about what it will take to get the loan cleared to close.

Home Loans Professional

Most of the issues in DU Approvals that come up can be overcome with experience. If you are applying for a Santa Clarita home loan you will want to make sure you have someone your working with who has the experience to offset these issues. For more information visit our blog at www.mortgageconsumer.com/blogs