Compensating Factors on Manual Underwriting
Mortgage Underwriters will require one or more compensating factors for borrowers with higher debt to income ratio on manual underwrites to offset the risk of the higher DTI.
Getting a Mortgage With Student Loans
This guide covers getting a mortgage with student loans with high debt-to-income ratio. Getting a mortgage with student loans can often be challenging. Student loans and auto loans are the two biggest barriers affecting borrowers getting a mortgage with student loans due to high debt-to-income ratios. Professionals such as doctors, dentists, educators, lawyers, and business…
Refer-Eligible Per Automated Underwriting System Findings
This article will cover and discuss refer-eligible per automated underwriting system findings. All mortgage loan applicants need to go through the automated underwriting system (AUS) before the loan process can proceed. If the findings on the automated underwriting system render an approve/eligible, that means the AUS approves the borrower. There are three decisions the automated…
VA Late Payment After Bankruptcy Guidelines on VA Loans
This guide covers VA late payment after bankruptcy mortgage guidelines on VA loans. VA loans were created and implemented to reward active-duty or retired members of the United States Armed Services for their service. Only eligible members with a valid Certificate of Eligibility (COE) can qualify for VA loans. VA loans are the best loan…
Mortgage Rates After Bankruptcy
This guide covers mortgage rates after bankruptcy on government and conventional loans. There are loan level pricing adjustments (LLPA) charged by mortgage companies for layers of risk. For example, there are tiers of pricing adjustments on credit scores. The lower the credit scores, the higher the pricing adjustments. Many people think mortgage rates will be…
Mortgage Escrows Guidelines on Purchase and Refinance
This article covers mortgage escrows guidelines on purchase and refinance home loans. Homeowners are not just responsible for their principal and interest payments on their loan balance but are also responsible for their property taxes and homeowners insurance. Lenders prefer their borrowers all have escrow account. By having a mortgage escrow account, the lender will…
How Long is a Pre-Approval Valid When Shopping For a Home
This guide cover how long is a pre-approval valid when shopping for a home. A pre-approval letter is a ticket for homebuyers to go and enter into a real estate purchase contract and the transaction is likely to close. A pre-approval letter is not a guarantee that the mortgage loan application is guaranteed a residential…
How Credit Scores Affect Conventional Loans
This guide covers how credit scores affect conventional loans. Two of the most popular mortgage loan programs today are FHA and Conventional loans. Conventional loans are not government loans like FHA, VA, USDA. Conventional loans are called conforming loans because they need to conform to Fannie Mae or Freddie Mac Guidelines. Credit scores play a…
Mortgage Process After The Conditional Approval
This guide covers the mortgage process after the conditional approval leading to a clear-to-close. The mortgage process after the conditional approval depends on how fast the mortgage processor can gather the list of conditions. The borrower’s cooperation is needed to get complete docs that are legible with no missing pages. There are multiple steps in…
How To Cancel PMI on Conventional Loans For Homeowners
This guide covers how to cancel PMI on conventional loans for homeowners. Mortgage insurance is required on FHA, USDA, and conforming loans with less than 20% equity. There are two types of mortgage insurance: Upfront mortgage insurance and annual mortgage insurance. Private Mortgage Insurance (PMI) is typically required for conventional loans when the borrower’s down…
The Importance of Debt-To-Income Ratio in Mortgages
This guide covers the importance of debt-to-income ratio in mortgages. Borrowers need to keep in mind the importance of debt-to-income ratio in mortgages when qualifying. DTI is what determines whether or not a borrower qualifies for a mortgage. You can have the best credit and credit scores in the world but if your debt-to-income ratios…
Written Payment Agreements With Creditors
This guide covers setting up written payment agreements with creditors and collection agencies so you can qualify and get pre-approved for a mortgage. There instances where written payment agreements with creditors are required to get approved for a mortgage loan. HUD, the parent of HUD, does not require outstanding collection accounts with outstanding balances to be…
VA Loans During Chapter 7 Versus 13 Bankruptcy
In this blog, we will cover and discuss the agency mortgage guidelines from the U.S. Department of Veterans Affairs for qualifying for VA loans during Chapter 7 versus 13 Bankruptcy. For those who fell victim to our country’s economic collapse and lost their jobs, chances are that they are overwhelmed with debts. There are major…
How To Qualify For Veteran Administration Loans
This guide covers how to qualify for veteran administration loans with bad credit. Veteran Administration loans, also referred to as VA home loans, are residential mortgage loans that are insured by the United States Department of Veterans Affairs. Homebuyers can qualify for VA loans with bad credit. VA loans has one of the most lenient…
Automated Underwriting System | Credit Disputes | Credit Scores | Mortgage Processing And Underwriting | Videos
How Credit Repair Can Affect The Mortgage Process
This guide covers how credit repair can affect the mortgage process and cause a mortgage loan denial. There are several things to keep in mind with how credit repair can affect the mortgage process. Many people want to know the fastest way to repair credit and improve credit score to qualify for a mortgage. Homebuyers…
Home Mortgage After Forbearance Agency Guidelines
This guide covers qualifying for a home mortgage after forbearance. Borrowers can qualify for a home mortgage after forbearance. The CARES ACT mortgage forbearance program is not treated the same as a regular forbearance due to not being able to afford monthly mortgage payments. In this article, we will discuss and cover qualifying for a…
First Payment After Closing For Mortgage Loan Borrowers
This guide covers the first payment after closing for mortgage loan borrowers. One of the most common questions new homebuyers ask is when the first payment after closing. Other homeowners tell many that it will be a while before they make the first payment after closing on the new home. The first payment on a…
How Hard Pull Credit Inquiries Affect Credit Scores For a Mortgage
This guide covers hard pull credit inquiries by creditors, mortgage lenders’ credit inquiries, and their impact on borrowers’ credit scores. Lenders will do hard-pull credit inquiries for mortgage loan applicants who need to get pre-approved. If you’re rate shopping for a mortgage or auto loan, multiple inquiries within a certain timeframe (often 14–45 days, depending…
Mortgage Rates and Terms versus Credit Scores and LTV
This guide covers mortgage rates and terms compared to credit scores and loan-to-value. Homebuyers planning on buying a home should prepare way ahead of time when preparing for a mortgage to get the best mortgage rates and terms. Mortgage applicants can take certain simple steps to maximize their credit and get the best mortgage rates and…
Home Loan With No Credit Tradelines Mortgage Guidelines
This guide covers qualifying for a home loan with no credit tradelines mortgage guidelines. The team at Gustan Cho Associates often gets frequently asked questions on how to qualify for a home loan with no credit tradelines. Credit tradelines are active and open credit accounts such as credit card accounts, automobile loans, installment loans, leases, and…
DTI Overlays Required By Lenders on Home Loans
This guide covers the DTI overlays lenders require on government and conventional loans. DTI overlays are imposed on home mortgage programs by lenders. All mortgage companies must adhere to agency mortgage guidelines on government and conventional loans. There are three government-backed loan programs: FHA, VA, and USDA. Government loans have their minimum agency lending requirements…
