A mortgage underwriter looks for potential issues that may prevent a borrower from making his house payment. They investigate application information, evaluate the property to ensure the transaction is financially practical, and verify funds involved in the mortgage transaction.Know More
According to CNN, the Federal Reserve estimated in 2011 that nearly 25 percent of mortgage applications are denied because the underwriters find problems with the applicant's credit score, source of income or personal finances. The underwriter wants to see how much debt the applicant has, what his monthly finances are, and how much money he has in savings to pay the mortgage if he loses his job or has personal problems that restrict his income.
The underwriter looks at the value and the condition of the property to make sure the loan is worth the value of the home, in case the homeowner defaults and the lender is stuck with the property. The underwriter verifies funds that will be used to pay for the insurance, taxes, down payment and other expenses that are involved with closing on a home mortgage. The underwriter also makes sure that the applicant isn't trying to take out two mortgages, and that he isn't using a loan shark or other lender.Learn more about Credit & Lending
Flagstar Bank, like most mortgage lenders, usually charges a 5 percent fixed late fee on the payment amount if a borrower falls behind by 15 days or more. However, some states do limit the amount of late fees lenders can charge borrowers.Full Answer >
A mortgage payoff statement is a document that a lender issues to a borrower to notify him of the outstanding mortgage terms, notes Investopedia. It includes pending loan balance, interest rate, payments number and prepayment interest refund amount. A mortgage payoff statement is also known as a letter of demand.Full Answer >
When a borrower on a mortgage dies, assuming the deceased was the only borrower on the loan, typically the remaining balance of the loan becomes due. If there is a secondary borrower, such as a spouse, that person may assume the remaining balance of the loan and pay it back according to the terms already set forth, according to VA Loans.Full Answer >
A mortgage payoff letter is a letter from a mortgage lender that explains to the borrower how to pay off the home loan. As the end of a loan agreement approaches, the borrower requests a mortgage payoff letter in order to avoid any confusion for either party.Full Answer >