Your Income - The underwriter looks carefully at your capacity to repay the loan. Your job stability and gross income (in relation to your expenses) are critical in this regard. Most income must be verified as having been received for at least two years to be used for qualifying purposes.

Your Credit History - Your credit history is an indication of your "character" or your willingness to repay the loan. The underwriter looks closely at your past payment record (your credit report) in determining this. Any consistent patterns of late payments, collections, etc. are not looked at favorably. Bankruptcies must be discharged for at least two years with re-established credit and the reason for the bankruptcy must be fully explained. Good explanations for all derogatory credit will need to be obtained. All outstanding collections, liens and judgments will have to be paid off through escrow. (Consult your Loan Officer about any credit questions you may have.)

Your Employment History - A consistent history of employment in the same line of work is considered ideal. "Job-hopping" is not looked upon favorably because it may lead to unstable income. However, if you have switched jobs within the same line of work for advancement in that work, there should be no problem.

Your Assets - The money you have available for the downpayment, closing costs, cash reserves (money left over after close of escrow to cover 2-3 months mortgage payments) and other liquid assets is your net worth or capital. The underwriter wants to see your ability to save money and manage your financial affairs. They also need to see the source of funds or where the money for the downpayment, etc. is coming from. Cash from under the mattress is not acceptable, we must verify that you have had the money (or the asset) for a two or three month period. Never move money around (pay off bills, get a gift, etc.) without first consulting your Loan Officer about the best way to do it since it can seriously affect the underwriter's view of your loan.

Your Debts - The underwriter is concerned with the amount of debt you currently have because it affects your qualification and your ability to repay the loan. Any excessively heavy use of credit is not looked upon favorably.

The Property - Because the property is the lender's collateral for the loan, the value, marketability and condition of the property is extremely important. The underwriter looks at the appraisal for this information.

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