We recently posted an article revealing the San Diego mortgage underwriting process and wanted to be a bit more specific in terms of what's being looked at and for.
Credit reputation, capacity and collateral are often called the "three Cs" of underwriting.
If one of these components is not acceptable or if there is excessive layering of risk across components, the mortgage may not be acceptable for sale to Freddie Mac.
Here's a quick rundown of our list:
- Credit Score
- Foreclosures, bankruptcies, liens and/or judgments
- Mortgage delinquencies
- Credit delinquencies, repossessions, collections, or charge-offs
- Credit accounts: type, age, limits, usage and status of revolving accounts
- Borrower's request for new credit in last 12 months
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- Debt ratios: Qualifying monthly housing expense-to-income ratio or monthly debt payment-to-income ratio
- Salaried versus self-employed borrower
- Cash reserves
- Number of borrowers
- Loan Characteristics:
Product: a 15-, 20-, and 30-year fixed rate, an adjustable rate mortgage
Purpose of Loan: purchase or refinance (cash-out or no cash-out)
- Borrower's total equity or down payment
- Property type: a 1-unit or 2- to 4- unit detached property, Condominium Unit or Manufactured Home
- Property use: Primary Residence, Second Home or Investment Property
What do you think?
Do you have any experiences going through the mortgage underwriting process and want to share the good, bad, and ugly?
Let me know in the comments section below - or, call/text me at (760) 297-4539.
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