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if underwriter says no to our pre-approval, why are they waiting for USDA?

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  • if underwriter says no to our pre-approval, why are they waiting for USDA?


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Answer #1 | 23/12 2013 20:29
There are regulations that encourage (aka force) banks to make sure that their lending practices are fair. I forget the term for it, but, in essence, banks used to have policies, for instance, that would allow their lenders to extend credit to "people in this area" but NOT "people in that area." This was found not to be right / discriminatory. So now banks have additional regulations which they must abide, that most often come into play after their initial approval process (pre-approval) turns a person down. They are asking for more information for that reason -- to see if you fall into the category of (possibly) disenfranchised people and qualify for more lax underwriting standards because of that distinction.
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