Mortgage Underwriters Role
A mortgage underwriters role is to be the devils advocate and scrutinize and analyze every single mortgage document a mortgage loan borrower has submitted and check for validity and find a reason to deny a mortgage loan and make sure that the odds are that the mortgage loan borrower will be able to repay his or her mortgage payments on time. It is the mortgage underwriters role to approve a mortgage loan borrower who will be late on future mortgage loan payments and avoid a default on a mortgage loan thus avoiding foreclosure. Mortgage underwriters role is also to make sure that the mortgage loan borrower is not committing any acts of fraud. In the event if the mortgage underwriter does make a mistake and approves a mortgage loan borrower who is not qualified and does not meet federal lending guidelines, the mortgage company is required to purchase the mortgage loan back.
Mortgage Underwriters Role Is To Analize Risk
A mortgage underwriters role is to look at late payments from the mortgage loan borrower and to see whether the mortgage loan borrower has had a history of late payments and the circumstances why they had late payments. Previous payment history is a good indicator of future payment behavior.
Mortgage Underwriters Role Is To Make Sure Borrower Has Ability To Repay The Mortgage
Although there are late payment fees assessed with future mortgage payment lates, that is not what the mortgage company wants. They want a mortgage loan borrower who has the ability to repay the mortgage loan and the ability to pay their mortgage payments on time. A mortgage underwriter will understand prior late payments but they will want to know the extenuating circumstances why you were late such as a job loss, divorce, or medical situation. However, if you have good credit scores but a history of being a late payment payer for the last ten years, it will be hard to prove that you will be paying your new mortgage payments on time and it will be hard to prove. A habitual late payer is considered to be a financially irresponsible person and the chances to get a mortgage loan approval will be difficult.
Letter Of Explanation Is What Can Make You Or Break You
If you have had a prior bankruptcy or foreclosure, a mortgage underwriter will want to know the circumstances surrounding the economic event and the reason why you initiated the bankruptcy or foreclosure. Mortgage underwriters will frown on mortgage loan borrowers who are late on any payments after a bankruptcy or foreclosure but it will not be a deal killer. Many banks have internal mortgage lender overlays that will not accept anyone who was late after a bankruptcy or foreclosure, however, many mortgage bankers and mortgage brokers will have lenders or investors who will allow a few late payments after a bankruptcy or foreclosure as long as the mortgage loan borrower can provide a good letter of explanation and provide facts attached to the letter of explanation.
Mortgage Loan Borrowers With Lates After Bankruptcy Or Foreclosure
If you are a mortgage loan borrower with late payments after a bankruptcy or foreclosure please contact me at 262-716-8151 or visit me at www.gustancho.com . I represent wholesale mortgage lenders with no lender overlays and who will overlook late payments after a bankruptcy or foreclosure as long as you have a good explanation and a great letter of explanation.