2006-06-28 14:59:07 · 3 answers · asked by Leslie W 1 in Business & Finance ➔ Renting & Real Estate
When your loan is in the underwriting stage, the underwriter is examining your credit history, how stable your income is, the valuation of the house vs. the amount of the mortgage you're applying for, and other factors and trying to decide whether you are an acceptable risk for lending you the amount of money you've applied for.
2006-06-28 15:05:35 · answer #1 · answered by AnswerLady 4 · 0⤊ 0⤋
The mortgage "underwriter", or credit analyst, is checking your credit history at this point, they are also verifying your income and adding up all of the debt that you currently have outstanding. They add up all of the debt that you have outstanding, ie, credit cards, car loans, etc., once they have done that they then divide that total amount by your total gross income to get your debt ratio. Most underwriters will approve your loan if your debt ratio falls under a certain percentage (usually under 35%) and if your credit score falls within their guidelines. Once your loan has been approved by the underwriter, they will then give you application over to the processing department, so that the remainder of the loan process may be completed.
2006-06-28 22:07:31 · answer #2 · answered by wizibuff 4 · 0⤊ 0⤋
This is when the approval or denial descision is being made.
2006-06-28 22:02:38 · answer #3 · answered by skyhigh 3 · 0⤊ 0⤋