Frequently Asked Questions About Compensating Factors on Manual Underwriting: 1. What is manual underwriting, and how does it help me get a mortgage? Manual underwriting is when a human underwriter reviews your mortgage application instead of a computer system. This can help you get approved if the automated system says no, especially if you have…
Applying for a mortgage can feel daunting, especially when your lender asks you to submit a Letter of Explanation to Underwriters (LOE). You’ve come to the right place if you’re wondering why this is needed to write it effectively. In this updated guide for 2024, we’ll walk you through everything you need to know about…
When buying a home, getting pre-approved for a mortgage is one of the first steps. But did you know you can get a TBD property mortgage approval without even considering a specific home? In this guide, we’ll walk you through everything you need to know about getting a TBD property mortgage approval in 2024, how…
Verification of Rent: Why You Need it When Getting Approved for a Mortgage in 2024 Buying your first home is one of the biggest steps you’ll ever take. And if you’re like most people, you’ve been renting until now. Lenders look at many things when deciding whether to approve your mortgage application, but did you…
Refer Versus Approve/Eligible: What You Need to Know for Your FHA Loan Approval in 2024 Getting approved for a mortgage can feel like a huge mountain to climb, especially if you’ve got less-than-perfect credit or a higher debt-to-income ratio. If you’re applying for an FHA loan, understanding the difference between “refer” and “approve/eligible” is essential….
This guide covers the mortgage process leading to clear-to-close and closing on time. The basic steps in the mortgage process leading to clear-to-close and closing on time. The mortgage loan and approval process starts when the mortgage processor is assigned to the borrower’s file. The loan officer will be alerted once the applicant completes and…
This guide covers changing lenders during the mortgage process. Is changing lenders during the mortgage process a good idea? You want to avoid changing lenders during the mortgage process if at all possible. Changing lenders during the mortgage process will cause delays in closing on your home loan. Our mission at Gustan Cho Associates is…
How auto loans affect home loans for borrowers with a high debt-to-income ratio is a frequently asked question at Gustan Cho Associates. This article covers how auto loans affect home loans. Debt-to-income ratiosare one of the most important factors when it comes to mortgage qualification. Debt-to-income ratios are what determine how much home buyers can…
This blog will cover and discuss manual underwriting credit guidelines on VA and FHA loans. VA and FHA allow for manual underwriting. Fannie Mae and Freddie Mac do NOT allow manual underwriting on conventional loans. According to Angie Torres, the National Operations Director at Non-QM Mortgage Lenders, manual underwriting is defined as follows: Manual Underwriting…
This guide will cover how a credit dispute on a derogatory credit tradeline can halt the mortgage process on FHA loans. Millions of Americans fell victim to the economic, real estate, and banking collapse of 2008. The Great Recession of 2008 devastated more families than any other in U.S. history. Dale Elenteny of Non-QM Mortgage…
Apply Now This article will cover going through credit repair to qualify for mortgage. Is going through credit repair to qualify for mortgage recommended? Consumers’ credit scores determine whether or not they qualify for a particular mortgage loan program. There are minimum credit score requirements for all loan programs. To qualify for a 3.5% down…
The difference between a mortgage pre-approval versus pre-qualification is that a mortgage pre-approval letter is issued by an underwriter after the loan has been fully underwritten. Unfortunately, many loan officers issue pre-approval letters without the file being processed and underwritten The way mortgage companies issue pre-approvals vary from lender to lender Non-QM Mortgage Lenders is…
DTI manual underwriting guidelines on FHA and VA loans are similar. FHA and VA loans are the only two loan programs that allow manual underwriting on home mortgages. Many people are often confused about the differences between manual underwriting and automated underwriting system (AUS) approved files. Manual and AUS-approved underwriting is the same. However, with…
In this blog, we will cover VA Manual Underwriting Guidelines During Chapter 13 Bankruptcy Repayment Period. VA loans are home loan programs for active and/or retired members of the United States Armed Services with a Certificate of Eligibility. The Certificate of Eligibility is also referred to as the COE. Only active-duty and retired members of…