One for all of your monthly liabilities divided by your gross monthly income back-end DTI ratioand one for just your proposed monthly housing expense including taxes and insurance divided by income front-end DTI ratio. Some banks and lenders require both numbers to fall under a certain percentage, though the back-end DTI ratio is more important since it considers all your monthly debts, and is thus more representative of the risk you present to the lender.
It is critical that you follow this list of Do's and Don'ts while your loan is being reviewed by an underwriter: Do's Do make the minimum monthly payments on your consumer debt until your new loan closes and funds.
Any deviation from this may negatively affect your mortgage application.
Do make sure that your mortgage payments are no more than days late until your new loan closes and funds. As your application gets closer to settlement, please inform your Meridian Home Mortgage contact if you are at risk of paying your mortgage payment more than 15 days late.
On occasion there are outdated or unreleased liens which can cloud the ownership of your property, or similar situations which require the Title Company to contact you and request information to clear your title in preparation of your potential closing. Do fax or email us any items that we request from you immediately.
These items are required by the underwriter. All of the documents in your file have an expiration date. We will always be battling the underwriter to crunch time frames on your behalf and to immediately establish the first available closing date.
Do hold onto all of the pay stubs, bank statements, retirement account statements, pension statements and social security statements that you receive electronically and through the mail until your new loan closes and funds.
You may be required to provide them. Dont's Don't resign from your current job or retire during the loan process. If you have an opportunity to leave your current job for a better opportunity please reach-out to us prior to making a decision to determine how it might affect your loan.
Don't open any new credit accounts or apply for new credit accounts prior to your new mortgage loan closing.
Any new account or credit inquiry can easily be identified by the underwriter and may put your application at risk. We ask that you discuss these types of scenarios with us prior to taking action. Don't make any balance transfers on your existing credit card balances.
Any new account or balance transfer may slow your mortgage application process. Don't pay off any existing consumer credit accounts in full e.Once you actually apply for a home loan, your mortgage application will be organized by a loan processor and then sent along to a loan underwriter, who will determine if you qualify for a mortgage.
The underwriter can be your best friend or your worst enemy, so it’s important to put your best foot forward. The loan might be denied if the borrowers do not meet underwriting requirements. If you are denied for a mortgage loan, the lender will send an explanation of the decision.
Video of the Day. Underwriting and Loan Approval Process In addition to the decision factors, management should also set forth guidelines for the level and type of documentation to .
A loan processor will confirm your information. The lender then will issue a preapproval letter, stating that it is willing to lend you a certain amount based on the information you provided. When I say auto loan, any installment loan (non student) is looked at the same. Do you think we can get a loan? We might be able to put some $$ down, like $3, or so. Any help and advice you can give would be greatly appreciated. Your mortgage credit is going to be a hurdle in addition to your scores. If your auto history is good and you. Oct 18, · If you have good credit, not only do you have no trouble getting a loan, but you will also get the best rate. sunshined Post 2: @myharley - I think most of the changes in the home loan underwriting guidelines have been positive.
It is critical that you follow this list of Do's and Don'ts while your loan is being reviewed by an underwriter: Do's Do make the minimum monthly payments on your . A loan processor will confirm your information. The lender then will issue a preapproval letter, stating that it is willing to lend you a certain amount based on the information you provided.
A lot of underwriting is automated, so in cases where the situation doesn't have a special circumstance, the underwriting may be programmed into computer programs, similar to the kind of quoting systems you might see when you get an online insurance quote.