Tag: <span>Underwriting</span>

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ARE YOU A RECENT COLLEGE GRADUATE

Are you a recent college graduate? Are thinking about becoming a homeowner? Many recent graduates feel they may not qualify to purchase a home. College education is more expensive than ever and many students leave school with substantial student loan debt. Let’s take a look at how lenders consider student loan debt when underwriting a...

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OPTIONS ARE ENDLESS WHEN YOU WORK WITH A MORTGAGE BROKER

Loan Originators use both DU and LPA automated underwriting programs. What is DU and LPA, you might ask? DU is Desktop Underwriter and is Fannie Mae’s underwriting software. LPA is Loan Product Advisor and is Freddie Mac’s underwriting software; most conforming loans are run through one of these software programs. These programs dictate details such...

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I HAVE STUDENT LOAN DEBT, CAN I QUALIFY FOR A HOME LOAN?

College education is more expensive than ever. Many students leave school with substantial student loan debt. They may feel that they cannot purchase a home. Let’s take a look at how lenders consider student loan debt when underwriting a mortgage application. If the monthly payment for the student loan appears on the credit report, it...

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A SIMPLE COMPARISON OF APRs IS NOT ALWAYS TELLING

The APR discloses the cost of credit. The APR is calculated by taking into consideration the finance costs of the loan, and disclosing those costs in terms of the interest rate. The APR is usually different than the note rate on the loan. Often, on a 30-year fixed mortgage, the APR is higher than the...

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WHAT ARE FANNIE MAE AND FREDDIE MAC?

You may have heard of Fannie Mae and Freddie Mac. What are they, and how do they affect mortgages? Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are Government Sponsored Enterprises (GSE). They are quasi-governmental entities that were established to enhance the flow of credit in the housing industry....

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CAN YOU OBTAIN A LOAN WITHOUT PAYING ANY COSTS?

Many advertisers offer loans with no closing costs: Is this true? Can you obtain a loan without paying any costs? Well, yes you can, but you may be paying for it with a higher interest rate! There are costs associated with making a loan, such as underwriting, appraisal, credit report, escrow, title insurance and recording....

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UNDERWRITING: WHAT DOES THIS MEAN?

What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan. An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase) and appraisal to determine whether the documents will meet...