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If my automated underwriting system gets approved, does that guarantee I will receive the loan?
AUS approval is an initial assessment, not a final loan approval.
Further manual underwriting review is still required before a loan can be finalized.
Changes in your financial situation between AUS approval and final underwriting can impact the final loan decision, even if you were initially approved by the automated system.
Discrepancies or issues found in your documentation during manual underwriting can lead to your loan being denied, even after AUS approval.
AUS approvals are based on algorithms and predetermined criteria, which may not account for all nuances in an applicant's financial profile.
Different lenders may have varying AUS approval thresholds, so approval by one lender's system does not guarantee approval by another.
AUS systems rely on credit reports, employment data and other information provided - any errors or omissions in these could lead to an inaccurate initial approval.
Loan-to-value ratio is a key factor in AUS approvals, so changes to home appraisal values can impact the final decision.
Self-employed borrowers may face additional scrutiny during manual underwriting, even if their AUS approval seemed straightforward.
AUS approvals do not override lender-specific policy requirements that may still need to be met for final loan approval.
Automated underwriting is meant to streamline the process, but human oversight is still essential to validate the accuracy of information.
Borrowers should not assume AUS approval equals a guaranteed loan - they still need to provide all required documentation for manual review.
The AUS is the first step, but applicants must be prepared to address any issues that arise during the full underwriting process to secure final loan approval.
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