Understand How A Mortgage Application Gets Reviewed and Qualified So you’ve finally decided to take the plunge and buy a new house. Ever wondered what goes on behind the scenes and what the questions, qualifications and factors are that make the difference between an approval and denial? Given that our mission is to supply the community with tools and education…
Capacity To put it very simply, you need to prove that you can repay the loan. To determine if this is the case, the underwriter will analyze employment status, annual income, and debt. The underwriter will also review assets, such as savings and checking accounts, stocks and bonds, 401(k), and IRA accounts. Cash reserves may also be reviewed, to determine…
What is Collateral? Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. For a mortgage, the collateral is often the house purchased with the funds from the mortgage. If the borrower stops making loan payments, the lender can take hold of the items or house designated as collateral,…