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What do the Underwriters look at?   These are very simplified guidelines of what a typical mortgage underwriter will consider when evaluating your mortgage application for a conventional (Fannie Mae) loan.  In the past few years, most of these rules have not only been bent but shattered.  But first the basics:

  • Debt to income- The ratio of your total debt divided by your total income, the written limit is 36% although 40% is now the unwritten standard. This is figured on gross income.
     
  • Income and job stability, 2 years at same job or in same industry preferred.
     
  • Cash reserves are usually required to be seasoned (in your account for at least 6 months) and enough to cover your down payment, closing costs, and the first 2 months of mortgage payments.
     
  • Loan to Value (LTV in mortgage speak) is the amount you are borrowing divided by the appraised value of the house.
     
  • Property appraisal-  Underwriters will go over the appraisal with a microscope and may deem either the appraisal or the subject property unsuitable to lend against.

 


Automated Underwriting:   In the past 3-5 years there has been a major move in the mortgage industry away from human underwriters and to a more subjective way of measuring a borrower.  This is called automated underwriting.  You have a computer program that makes a decision based on the same basic criteria as above.  Your application information is entered into a computer and the software makes a decision as to whether or not to approve your loan.  The main difference is that automated underwriting will often use compensating factors such as a high credit score or low loan to value to approve the loan despite shortcomings in other areas of the application.  I have seen loans with excellent credit that were approved with an 80% debt to income ratio when 40% is now the industry norm.

There is usually much less documentation required when a loan goes through an automated underwriting system (known in the industry as Desktop Underwriting) and loans sometimes close in several days now instead of several weeks. The human underwriter's role is reduced to verifying the documentation requested by the computer program and evaluating the appraisal. The bottom line is that due to this automated underwriting it has become easier than ever to qualify for a low rate home mortgage.


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Still paying a high interest rate on your mortgage? That extra money should be yours each month. When interest rates are lower than what you are currently paying, it's time to consider refinancing. This can mean great savings for you and your family. Replacing your existing mortgage with a new, lower interest loan, changing the term of your loan, or even consolidating all your debts into this new loan will save you money, both monthly and over the life of the loan. Through the QueConnect network of refinance lenders, we can specifically design a custom mortgage refinance loan quote 2-8% below your current rate.

  • Fill out the mortgage refinance loan quote questionnaire to the left. We will search our database of refinance loan programs to fit your borrowing needs, there are hundreds of options and thousands of loan programs available.
  • Within 24 hours you will receive up to 4 free no obligation mortgage refinance loan quotes. You then - Compare, Choose and Save!

 


Submitting personal information constitutes a request to generate a mortgage quote and authorize QueConnect to send your loan request to multiple qualified lenders and brokers, who will be calling you with no obligation mortgage quotes. The information will be used and disclosed to effect only such transaction. Personal information is not disclosed to others for purposes other than mortgage quotes. All rates and prices are subject to change without notice based on market conditions. Rates are also based depending in part on your unique credit history and transaction characteristics. Not all products and services are available in all geographic locations. Acceptance is based on eligibility requirements and subject to final determination.


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