Reasons for Mortgage Pre-Approval | Underwriting

This is part 5 in my series about why not to skip a single step in the Arizona mortgage pre-approval process called "Reasons for Mortgage Pre-Approval."  See the rest of the series. Reason #5: Underwriters Have Final Say  Automation is taking over!  Our phones tell us what to do.  Our cars tell us where to go.  Camera's on the street tell the police if we are speeding.  You get the idea.  In this automatic world it's no shocker automation is part of the home loan process.  For example, all … [Read more...]

Reasons for Mortgage Pre-Approval | Assets

This is part 4 in my series about why not to skip a single step in the Arizona mortgage pre-approval process called "Reasons for Mortgage Pre-Approval."  See the rest of the series. Reason #4: Make Sure Your Assets are Eligible  One of the key components to any Arizona mortgage loan approval is documenting that a Phoenix area home loan applicant has enough funds to cover the amount of money they must come to closing with (down payment + closing costs paid by borrower/home buyer).  If an … [Read more...]

Reasons for Mortgage Pre-Approval | Income

Part 5 of 5 | Reasons for Mortgage Pre-Approval  See the rest of the series. Reason #1:  Income for Approval Income is key to each home loan approval.  While figuring income seems simple, often it is not.  Underwriters apply several rules to figure your "effective income." Effective income is the income used to qualify someone for a home loan.   In other words, lenders use effective income as the "income" part of your debt to income ratio.  Various rules factor into effective income.  These … [Read more...]

Mortgage Pre-Approval | Disputed Trade-lines

Part 4 of 5 | Reasons for Mortgage Pre-Approval  See the rest of the series. Reason #2: Credit Tradeline Disputes  Considering the changes in the mortgage industry its natural that credit rules have also increased.  In fact, many facets of consumer credit now defy logic.  For example, paying off a collection potentially lowers your credit score.   Just as this opposes common sense, so to does the way credit disputes impact the home loan process. Often, prospective home buyers do not know … [Read more...]

Mortgage Pre-Approval | Tax Returns

Part 5 of 5 | Reasons for Mortgage Pre-Approval  See the rest of the series. Reason #1: Tax Return Hurdles While not every borrower needs to supply their tax returns during the home loan process, many do.  In fact, lenders often require tax returns in situations you may not think they would not.  Either way, thoroughly covering the tax return bases is a must. Why is this tax return due diligence advised?  Hidden road blocks tend to show up on tax returns.   Road blocks to loan approval.  … [Read more...]