The Mortgage Underwriting Process When Buying A House

Are you a first time home buyer wondering what goes into the mortgage underwriting process when buying a home? What is underwriting and why is it important? How is different from getting pre-approved? What happens during the mortgage underwriting process? What does the underwriter review when deciding on whether or not to approve your mortgage loan? In this episode, we take a bird's eye approach to the underwriting process to cover the 4 C's of underwriting to help you become The Educated HomeBuyer.

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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty

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Josh Lewis (Huntington Beach Certified Mortgage Expert)
NMLS ID: 234220 | CA DRE: 01209148
United American Mortgage | NMLS ID: 1942

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[hamma]

Folks! for people that is concern of qualifying the approval of the loan, 1st get your loan officer to do a DU (Desktop Underwriting) So you don't waste time with your realtor and engaging into contract and found out you can't get approve later. Don't waste your time get a DU first!

[christiancova]

My wife and I are going through the underwriting process right now, she got a 2nd job a few weeks before we decided to go for a house. Here is the caviat, she has been working way more on the second job because she’s earning better money that on the first job. Can this affect us? My salary is pretty good, about 70k a year for a 230k house

[thelist]

Wow, it’s so hard to find people who can explain things so easily & clearly! I’m not sure if your average buyer can listen to you talk for 2 hrs, but I certainly can!!! I had to subscribe immediately & can’t wait to listen to you share more of your knowledge, experience & guidance! Not sure if you were ever an underwriter, but as an LO you clearly understand what you are doing & I can’t say that about a lot of LOs! Thank you!!

[warrenross]

I was near closing, house under contract they were about to setup date for it, then they say i dont have any payment historys at the last moment and i got denied shouldn't they had told me that in the beginning when i first applied

[Solid_Snack]

I got under written pre-approved but have to go through final approval process im so scared. I hope they qualify me.

[rodneyboswell]

please do more of these videos on this topic.

[williamgreenlee]

How close are you to closing when your insurance company issues a Declaration of Insurance page?

[carolinapascua]

That is as an LO you have to be in wholesale setting so you have options not only agency loans can be QM and Non QM

[nickimillennium]

If your DTI is high, you’re not qualifying. They’re not forthcoming with this a lot of the time before you even start the process and people think it’s all about credit score and income. A lot of people with good income are getting denied because student loans are I’m messing up the DTI

[carolinapascua]

it is the job of the LO to document the file as per guideline.

[redstreet]

My last house in that I bought in 2012I did a VA loan. My credit score was around 770. I was never asked one question during underwriting. Now my credit score is 822, but this time they're nit picking everything. I received a list of at least ten things that I needed to get done. I'm ready to tell them to shove their loan.

[jamesturpin]

Amazing information. You guys rock. Fr Fr.

[oemex]

I got in garage made office can I get btl mortgage

[AJ-dsjd]

Would you change careers and underwrite. Take classes to learn?

[carla]

Really great information! Can you cover the best way to include income from a rental property that you have not claimed on your taxes because the property is being rented for less than fair market value to a relative. Would showing that the mortgage was paid from his bank account for the past 5 years be enough for the underwriters?

[natsthesweetone]

What if you haven’t been on the 2nd job for a full two years yet. Only a little over 1 year. but you’ve consistently had 2 jobs in the same line of work for over 2 years? Would that suffice?

[theforestisdark]

What about a high credit score but lack of credit use within the last 12 months and then 1 use while in the process of a mortgage? Would that disqualify you?

[KB-okob]

I have a “credit approval letter” but I didn’t disclose a bank account. Should I? It’s a very small bank account with <1000. use it to buy stuff online, no bill pay

I have 2 jobs and the second job has a direct deposit of $100 going to the account w/ the rest of the paycheck going to my regular bank account,
my underwriters do have the pay stubs that show the $100 deposit to the 2nd undisclosed account..

Is it worth mentioning or should I wait for them to bring it up?

[SYSTEMLIFEGAMING]

They will not give me a loan because I pencil the taxes as they say I wrote off as much as I could but I still cannot receive a loan I work a 1099 job. How can I go about getting my loan?