What are the chances of getting denied after pre approval? A mortgage loan should never get denied. Once a loan officer issues a pre-approval letter, the loan should close. A loan officer should never issue a pre-approval letter if he or she thinks there is a one percent reason for loan denial. If a loan…
All lenders use the automated underwriting system on government and conventional loans before proceeding to the next step of the mortgage process. The automated underwriting system is commonly referred to as AUS. There are two different versions of the automated underwriting system: Fannie Mae’s Desktop Underwriter commonly referred to as DU Freddie Mac’s Loan Prospector…
This Article Is On Correspondent Lending Versus Wholesale Lending By Mortgage Brokers Understanding the difference of Correspondent Lending Versus Wholesale Lending By Mortgage Brokers. Most borrowers will consult with a licensed loan officer when they need to apply for a mortgage. However, not too many consumers know whether the loan officer works for a correspondent…
This Article Is About What Is The Difference Between Mortgage Brokers Versus Mortgage Bankers What Is The Difference Between Mortgage Brokers Versus Mortgage Bankers is a question many borrowers often ask. Should borrowers go to a mortgage broker or a mortgage banker to qualify for a home mortgage? Is a loan officer from a mortgage…
The qualification and pre-approval process is the most important step of the mortgage approval process. The loan officer should fully take their time in qualifying borrowers prior to issuing a pre-approval letter. The number one reason why there are delays or stress in the mortgage process is due to the fact the borrowers were not…
This Article Is About Third-Party Mortgage Processing Used By Mortgage Lenders Using Third-Party Mortgage Processing can be a great benefit for mortgage companies during times of high volume and capacity. Most lenders have in-house mortgage processing. However, there are times when lenders are busier than normal. The mortgage process is a true process. You cannot…
If you have an eviction on your record, it doesn’t mean that you can’t ever own a home. There are plenty of programs available to those with less-than-perfect credit histories that can help you get into a home of your own. An eviction is a legal process of removing a tenant from a rental property….
Calculating debt ratio is one of the key elements in getting a mortgage. The formula is basic math: total monthly payments divided by total income (payments/income) When you apply for a mortgage, you’ll need to meet maximum DTI requirements so your lender knows you’re not taking on more debt than you can handle. Lenders prefer…
The answer is YES. Licensed real estate agents can be licensed mortgage loan originators at the same time. However, many mortgage companies will not hire loan officers with active real estate licenses. This is not a law and/or a regulation but an internal rule by individual mortgage lenders. Most larger mortgage companies will require licensed…
Many borrowers often ask the question of factors that determine mortgage rates. Not every borrower will get the same mortgage rates on government and conventional loans. Rates are based on the risk level of borrowers. Prior bankruptcy and/or foreclosure does not matter with pricing on mortgage rates. On government loans, credit scores are the main…