What is TBD Underwriting Pre-Approval

TBD Underwriting Pre-Approval Signed Off By Mortgage Underwriters

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On TBD Underwriting Pre-Approval Was PUBLISHED On September 30th, 2019

TBD Underwriting Pre-Approval Mortgage Process:

  • The Team at Gustan Cho Associates are excited to reintroduce our to be determined (TBD) underwriting process
  • We come across many unique mortgage situations
  • On average, 75% of our clients have been turned down by their current mortgage lender
  • Most of the time this is due to LENDER OVERLAYS or an inexperienced loan officer
  • Since we specialize in tough mortgage scenarios
  • We are excited to reintroduce are upfront underwriting process
  • In this blog, we will detail the TBD underwriting process, when to utilize this process, and what to expect after the TBD Underwriting Pre-Approval Signed Off By Mortgage Underwriters

In this article, we will cover and discuss Gustan Cho Associates TBD Underwriting Pre-Approval Signed Off By Mortgage Underwriters.

What Is The TBD Underwriting Pre-Approval Process

What Is The TBD Underwriting Pre-Approval Process

What is a TBD Underwriting Pre-Approval Mortgage Process:

  • This is a special process for tough mortgage qualifications
  • While agency guidelines are very black and white, underwriter discretion can be a grey area
  • This TBD process is put in place so the underwriter can approve your income, assets, and credit BEFORE you submit an offer on a property

They will underwrite your file with an address of TBD or to be determined.

What Triggers A Mortgage Application

There are six critical pieces of information that trigger a full mortgage application. The acronym A.L.I.E.N.S. is used for these pieces of information.

  • A- Address
  • L – Loan Amount
  • I – Income
  • E – Estimated Value of the Property
  • N – Name
  • S – Social Security Number

Are TBD Underwriting Pre-Approval Loans Triggered?

In the TBD Underwriting Pre-Approval Process, we leave out the address and use to be determined (TBD), so we do not have a full mortgage application.

  • When utilizing the TBD process the underwriter will go through and underwrite your credit, assets, and income
  • They will not underwrite the appraisal or title work on the property, because they do not have that information
  • Since the bulk of your file will already be underwritten, you can put an offer in with confidence
  • You will receive a TBD underwriting approval

This approval will state you are Pre-Approved up to a certain payment. Showing UNDERWRITTEN approval will strengthen your offer!

Benefits Of TBD Underwriting Pre-Approval Letters

How to use the TBD underwriting process:

  • Utilizing the TBD underwriting process is the same as getting a pre-qualification letter
  • The first step is to contact Gustan Cho Associates
  • Please call Mike Gracz on 630-659-7644 or email mgracz@gustancho.com
  • After your initial one on one consultation, you will be sent an application link from a licensed loan officer in your state

You will complete that link to the best of your abilities and send in the following documentation:

  • Last 60 Days Bank Statements – to source down payment
  • Last 30 Days Pay Stubs
  • Last Two Years W2’S
  • Last Two Years Tax Returns
  • Driver’s License
  • (other documents may be requested)

How Pre-Approvals Processed By The Loan Officer

How Pre-Approvals Processed By The Loan Officer

Your loan officer will review your credit report and supporting documentation.

  • From there, your loan officer will know if you qualify, need to work on credit-related items, or need to be sent to TBD underwriting
  • TBD underwriting is used when the loan officer sees an item that needs to be approved by an underwriter, underwriter’s discretion
  • Please read our blog for more on the UNDERWRITER’S ROLE in the mortgage process

The TBD desk is used for one-off situations. One of the most common times we utilize the TBD underwriting process is when there are late payments on your credit report.

Recent Case Scenarios

Below is a recent loan that Gustan Cho Associates closed:


  • Recently Gustan Cho Associates used the TBD process for a VA client
  • The Veteran had TWO 30-day late payment reporting on his credit report within the past 12 months
  • These payments were late while the veteran was on active duty in Afghanistan
  • The home with the late payments was recently sold but the late payments are still on the credit report
  • Since the underwriter would need to approve the reason for mortgage late payments, we utilized the TBD underwriting process
  • Before an offer is submitted on a property, the client needs to know if those late payments will result in a denial
  • In this particular case, the underwriter reviewed the LETTER OF EXPLANATION  and was able to approve the TBD file even with the late payments

Since the client attempted to pay from an international bank, and the dates correlated with the letter of explanation, the approval was granted. The client has an official pre-approval letter (signed off by an underwriter), they can now put an offer in with confidence.

When Are TBD Pre-Approvals Used

We use the TBD underwriting process for clients with difficult income qualifications.

  • At the end of the day, an underwriter will calculate how much qualifiable income each borrower may utilize
  • When there are unique income qualifications, the TBD underwriting can save the day
  • We recently had a client who had experienced a seasonal layoff last winter
  • This particular client has now been back to work full-time for the same company for five consecutive months
  • We used the TBD underwriter to calculate qualifiable income
  • During the TBD underwriting process, our team completed a full written verification of employment and were able to justify the likelihood of the income continuing through the winter

Since we spent the upfront time completing all verifications, so the underwriter issued a TBD approval based on income, assets, and credit.

Understanding TBD Underwriting Pre-Approval Versus Standard Pre-Approvals

What to expect when using the TBD Pre-Approval Process:

  • The mortgage process can be confusing, especially if you have a one-off situation
  • It is best to take time upfront and complete a full TBD underwrite than to rush into the process
  • We have put this TBD underwriting process together to help save our clients from the upfront cost associated with purchasing a home
  • Upfront costs include a HOME INSPECTION and a home appraisal
  • During the TBD process, it usually takes between 7 and 10 days to receive an answer from the underwriter
  • Once you have the TBD approval, the process is very quick
  • Since the majority of your file is already signed off by an underwriter, you can put in a confident offer with your realtor
  • Once your offer is accepted, you sign a full disclosure package, and then an appraisal and title report are ordered
  • Once those are received, the underwriter will need updated information from you such as bank statements and pay stubs

The TBD process does take the time upfront but once you are under contract the process is smooth sailing.

Qualifying For A Mortgage With A Direct Lender With No Overlays

How Qualifying For A Mortgage With A Direct Lender With No Overlays

The TBD underwriting process is another example of Gustan Cho Associates doing all we can to insure you close on your mortgage. This process is used when the qualifications are complicated and takes the nerves out of buying a home. The worst thing that can happen during the TBD process is the underwriter not approve the loan at this time. You are not out any earnest money or funds for inspections. We understand how difficult it can be to save money to buy a home. We do not want you wasting any money out of pocket. We want you to be 100% confident when out shopping for a home. If you feel this TBD process can help you and your family, call Mike Gracz on 630-659-7644 or send an

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