Home Loan Learning Center
What Is Community Property State?
The nine community property states are: Arizona California Idaho Louisiana Nevada New Mexico Texas Washington Wisconsin Community property means that spouses who buy property during marriage own property equally. If the couple divorces, community property is divided 50 / 50. Understanding Spousal ...
USDA Underwriting Guidelines
You will encounter the first step through an automated underwriting system. There are several types, and these computer programs evaluate your credit and financial profile to make a preliminary judgment based on your information. USDA lending utilizes an automated system known as GUS. Guaranteed Underwriting ...
What Is A Trade Line On A Mortgage And How They Affect Credit Scores
What Is a Trade Line? A trade line is like a snapshot of your financial history found in your credit report. It includes all the accounts you have, such as credit cards, loans, or any other credit you’ve used. Each trade line shows how you’ve ...
Mortgage Loan Denied – What To Do?
Common Reasons for Loan Denials in Underwriting Understanding common reasons for mortgage denials is crucial. There are six main factors contribute to loan denials:+. High Debt-to-Income (DTI) Ratio Lenders assess your total debt relative to your pre-tax income. Even cosigned debts or recent payoffs affecting ...
How to Get A Mortgage Preapproval
What Is A Mortgage Preapproval? A mortgage preapproval is a process where a lender evaluates your financial situation to determine how much you are eligible to borrow for a home loan. This involves a thorough review of your credit history, income, assets, and debts, including ...
USDA Loan Preapproval and Prequalification Process
USDA loans are backed by the United States Department of Agriculture and are aimed at people wishing to buy a property in a rural area. People working from home or who can adjust their lifestyle to a rural setting can benefit from low mortgage rates ...
USDA Bankruptcy Waiting Period – Loan After Chapters 7 and 13
Understanding the Path Forward Filing for bankruptcy doesn’t mean you can’t obtain a home. Chapters 7 and 13 are legal arrangements that help people overcome financial difficulties and bounce back. Mortgage after bankruptcy is still an option. Generally, you need to wait 3 years after ...
Why is the underwriter asking for more documents
As a first time home buyer, this question may be haunting you throughout the loan process. Here are a few reasons why your underwriter may ask for more documents. The original documents sent in for review didn’t cover all the requirements to get your loan ...
What is a Sourced Deposit?
When applying for a mortgage loan, you may be asked to explain cash deposits on your bank statements, especially if they are non-payroll deposits over $100. The underwriter requires “source documents” for each of these transactions. But what exactly are source documents? These documents are ...