1. I received a pre-approval letter for/from a buyer, but has the loan been run through an AUS system?
An Automated Underwriting System (AUS) helps determine the loan eligibility and conditions (documentation, etc.) the borrower needs to provide. The AUS is a requirement for all loans backed by either Fannie or Freddie, which is roughly more than 75% of all loans. What’s more, underwriters use an AUS as a guide and road map to approve the loan. 2. Can I (the buyer) escrow repairs after closing?
Both FHA and VA loans allow the borrower to escrow repairs. However, on conventional loans the repairs for escrow vary by investor (ex: Wells Fargo, BB&T). Make sure to check with the loan officer to see where you locked your rate and what that lending institution allows.
3. My property is on a septic tank and/or well. Where should I have the water tested?
All loans require you have your water tested and, if needed, treated before a loan approval can be issued. The testing ensures the property is safe to live in. Check out this list of local laboratories to have your water tested.