Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart



Two things a Mortgage Underwriters Checks for part 2

Posted by Percy A Lowe on March 31, 2013 at 4:00 PM

Debt-to-income Ratios

When choosing a mortgage underwriter from outside your business, ensure that they have enough knowledge of debt to income ratios. These are calculations that underwriters utilize to determine whether a prospective home buyer is eligible for a loan. There are usually two types of calculations. The Front Ratio compares a borrower's expense to their income. They divide a borrower's total mortgage loan with their gross monthly income. The Back Ratio compares total monthly obligations to income. A reliable mortgage underwriter must be able to explain debt-to-income ratio issues to borrowers. For instance, they must explain why some aspects are included or not included in the total obligations or gross monthly income of a borrower.

Under total monthly payments, competent underwriters include all installment loans that have less than ten months remaining, co-signed loans, child support, any loan from a previous marriage, PITI (principle, interest, taxes and insurance) and all accounts, including credit cards'. Under gross monthly income, they include overtime, self-employed salary, bonuses, commission and child support contributions.


Categories: Mortgage Advisory

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.

Already a member? Sign In