Tag Archives: loan approval

When Mistakes On Credit Report Prevent Loan Qualification

What to do when you discover mistakes on your credit report are the reason why you cannot qualify for a mortgage In the credit reporting system, you are considered to be guilty before you can be proved innocent by the credit bureaus. In a nutshell, this means that if you have an error showing on […]

5 Common Problems With Home Loan Approval And How To Solve Them

Dealing with Common Problems In Mortgage Approval The ideal borrower has a good credit rating, can make a substantial downpayment, can prove good income, has few debts and liabilities and shows stability. Problems and ¬†obstacles come about when any of these conditions cannot be met by the borrower. However, these are common issues faced often […]

Credit Report Problem Stops Mortgage Approval – What To Do

What to do when Credit blemishes stand in the way of getting approved for a mortgage loan. Negative entries on your credit report can into the mortgage modification process. If you have had problems with creditors in the past and resulting nonpayments, late payments or delinquent accounts then you really cannot escape the consequences for […]

Problem Properties – A Problem With Mortgage Approval

There are typically 2 types of properties that are difficult to get a home loan for. They are fixer uppers and cooperative apartments. Cooperative apartments When you purchase a home you get the title deed in your name that proves that you own the house. Whereas when you buy a cooperative apartment you get the […]

Understanding How Credit Score Are Used For Mortgage Qualification and Underwriting

Usage Credit Scores for Mortgage Application More and more lenders not rely on the credit score of our borrower to make the initial decision regarding the credit worthiness of the individual. Cost experience and usage has to get that credit scores our excellent predictors of the mortgage loan performance as well as the reliability of […]

New and Automated Underwriting Procedure

New Underwriting Technology As mentioned before mortgage lenders are coming up with better ways to underwrite the loan applications in order to reduce defaults and foreclosures on the loans that they approve. They are trying to come up with better ways to just the creditworthiness of the borrower in order to make good decisions with […]

Why You Should Not Give Wrong Information On a Mortgage Application

Mortgage Lenders Detect Red Flags on a Loan Application It has been estimated by reliable resources that almost 25% of people applying for a mortgage provide false information on their mortgage application. This does not mean that they are trying to commit fraud or they are crooks. The main reason why people may provide strong […]

Loan to Value Ratio [LTV]

The loan to value ratio or the LTV is a convenient way for the mortgage lender to measure the risk that the mortgage loan signifiers. The loan to value ratio is the ratio achieved by dividing the loan amount by the property is appraised value. For example it’s appraised value of the property is $200,000 […]

Traditional Underwriting Guidelines

The complete underwriting process may be a little different from the preliminary approval or not and that a mortgage lender can give you based on the information that you provide him through an automated underwriting system. The mortgage lenders now have the ability to input the information you provide them to a software which has […]

Factors Used to Determine the Creditworthiness Of a Borrower

The lenders look at various factors and information to determine the creditworthiness of the borrower. These are some of the common practice that the mortgage lender looks at. Integrity The integrity of the borrower suggests how he is going to deal with the mortgage debt in the future. The integrity of the borrower becomes even […]