Discover answers to common questions related to mortgages.
What do underwriters look for on tax returns? An underwriter may review tax returns for a number of reasons. Some of these reasons may be to verify rental income, self-employment income, or investment/retirement income. The underwriter’s job is to verify that the borrower makes enough income to cover the mortgage payment and other potential monthly …
What does DTI stand for? DTI stands for debt-to-income. This is a ratio used by lenders to determine if a borrower has enough income to pay his debts, including the new loan payment. The DTI is calculated by taking the borrower’s total debts and dividing them by his total income. DTI Calculation Example Debts: New …
What is the difference between a PUD and a condo? A planned unit development (PUD) is often confused with a condominium (condo) because you usually cannot determine the difference just by appearance. Additionally, they both have a homeowner’s associated (HOA) fee that must be paid by residents in the community. Let’s take a look at …
What is a condo questionnaire? When a lender sells a mortgage secured to a condo to Fannie Mae or Freddie Mac, they need to ensure that the condo meets their condo lending guidelines. A condo questionnaire is a document completed by the homeowner’s association (HOA) or the condo management group, which helps determine if the …
There are a lot of similar words related to mortgages, renting, and housing that are confusing to many people. You can probably imagine how often words like mortgagor vs mortgagee or grantor vs grantee get mixed up. In this article, we will clarify the often confused lessor vs lessee. The Lessor A lessor is the …
Mortgagee and mortgagor often get confused. If you ever had a chance to closely review mortgage closing documentation, you probably have seen these two words throughout the paperwork. The mortgagee and mortgagor are essentially the two parties involved in a mortgage transaction. One is the lender and one is the borrower. The Mortgagee The mortgagee …
Generally, mortgage lenders do not check credit card statements. Lenders use the credit report to obtain information on your credit cards. The credit report will reflect such things as the credit card open date, monthly payment, any late payments, current balance, high balance, and date last active. The lender will use the minimum monthly payment …
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Many people probably would agree that applying for a mortgage requires a lot of documentation. The documents needed for a mortgage may seem excessive to some, but they are necessary for the most part. Banks or lenders need this documentation to evaluate the risk they are taking on in lending a borrower a significant amount …
A verification of mortgage (VOM) is a document used to obtain information on an existing mortgage. It is given to the creditor (current lender) who typically completes the document with the following information about the mortgage: Interest Rate Date Mortgage Originated Original Mortgage Amount Current Mortgage Balance Monthly Payment (principal & interest) Monthly Payment including …
It all depends on the lender. It can be as little as a couple days to several months. If you think about all the potential factors that come into play when trying to determine a general underwriting turn time, your head might spin. Essentially, there is too much to consider to broadly state how long …
