Pre-Underwriting Review (Pre-W)

Overview

Pre-W is the processor's practical pre-underwriting file review — run after the LO sends initial disclosures and submits the Pass to Processing handoff. Its job: catch missing documents, obvious inconsistencies, asset issues, and borrower-facing needs before the file moves deeper into processing and underwriting.

Be clear about what it is not: Pre-W is not an underwriting approval, not an AUS interpretation, and not a replacement for Arive. The processor confirms documents are present, complete enough to use, and reasonably consistent with the loan file — then consolidates what's needed into one clean borrower ask.

Timing expectation: first review within 48 hours of handoff.

What the processor reviews

1. File setup basics

• Transaction type confirmed (structured checklist applies to Conventional Purchase)
• All borrowers on the 1003 included in the review
• AUS engine identified (DU or LP) — if missing, route to the LO; the processor does not interpret AUS
• Estimated cash needed visible in Arive — without it, the assets/funds review can't be completed; route to the LO

2. Borrower identification

For each borrower: is a current, unexpired government-issued photo ID present? If not — one missing-ID request, and skip the rest of that borrower's ID checks until it arrives. If present: complete and legible, name matches the 1003, DOB matches the 1003, not expired.

3. Income documents

Presence, recency, and obvious consistency — the processor does not calculate income.

• All income sources being used are clearly identified in the file
• Required documents present for each source
• Borrower name matches the 1003; employer/payer reasonably matches the 1003 and LO notes (mismatches usually route to the LO)
• Recency rule: paystubs must be dated within 30 days of the loan application date
• Recurring deductions, garnishments, support payments, or loan payments on a paystub not already known in the file → route appropriately; no DTI decisions

4. Assets

• All pages present — missing pages become a borrower request
• Account name matches a borrower — if not, ownership/access documentation gets requested
• Statement address matches the 1003 — see the address rule below
• Large deposits — see the large deposit rule below
• Recurring deductions/payments not accounted for in the file — see the deductions rule below

5. Funds to close

Are sufficient verified assets documented to cover estimated cash needed? If not, a documented funds-source plan is required (additional account, gift funds, retirement, sale of asset, pending deposit, earnest money not yet credited, proceeds from another sale). A shortage with a reasonable documented plan doesn't block initial submission by itself.

6. Purchase contract

One question: is an executed purchase contract present in Arive? If no — missing-contract request. Substantive contract review happens during file setup, not Pre-W.

Company rules — apply these every time

Asset address mismatch → LOX, every time

If an asset-statement address does not match an address on the 1003, a signed and dated letter of explanation is required. No judgment call. Request language:

Large deposit threshold

A large deposit is any non-employment deposit greater than 50% of that borrower's base monthly income. Identify and document it — deposit date, amount, statement description, apparent source. Then choose the disposition: borrower request, LO decision, informational, or no further action. Don't auto-send every large deposit to the borrower, and don't make the underwriting acceptability call when it's unclear — that's the LO's or underwriting's decision.

Recurring deductions not in the file

Deductions on a bank statement that aren't reflected on the credit report may be hidden debt. Capture the details (bank, account ending, payee, amount, frequency) and request:

What Pre-W explicitly does NOT cover

These belong elsewhere. Route them; don't work them here:

• Qualifying income calculation or approval → LO
• Credit analysis — inquiries, collections, judgments, mortgage lates, DTI treatment → LO
• AUS eligibility interpretation → LO (the processor only notes DU vs. LP to understand statement expectations)
• Borrower eligibility or loan structure decisions → LO
• Detailed purchase contract review or legal/term analysis → file setup
• Underwriting acceptability of unclear large deposits or undisclosed obligations → LO / underwriting

After the review: the borrower communication sequence

Once the review is done and the findings are consolidated into a single borrower needs list, the sequence is the same every time:

1. Call the borrower first — every single time. The processor introduces themselves as a party to the transaction, gives the borrower a heads-up that an email with a document list is on its way, answers any questions, and walks through next steps. The call comes before the list, always — a document request from a stranger gets ignored; the same request after a warm introduction gets worked.
2. Create the group text thread — borrower(s), the LO, and the processor. This becomes the fast channel for the life of the file.
3. Send the consolidated needs request through Arive Client Needs — one clean, complete list. Not a drip of one-off asks.
4. Send the insurance introduction when applicable (purchase transactions needing HOI).
5. Set the next follow-up date. Open items get chased until cleared.

Review complete ≠ file ready

These are two different statuses, and keeping them separate matters:

• Review status — the processor finished reviewing available docs, categorized findings, consolidated requests, and completed the communication sequence. The initial Pre-W can be complete while borrower needs are still open.
• File readiness — whether the file can move forward: ready, needs borrower documents, pending LO decision, pending contract/title review, or multiple items outstanding.

Open borrower needs stay owned by the processor and drive follow-up work until each is cleared.

Who to ask if you're stuck

Income, credit, AUS, or structure questions surfaced by the review: route to the LO on the file.
Contract or title questions: Bryce or Dean.
Whether something is worth escalating at all: Bryce.