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
To make bi-weekly mortgage payments, a borrower pays half of his monthly mortgage payment every 14 days instead of the full mortgage payment once per month. Borrowers can pay their mortgages this way by mail, online or through automatic bill-payment systems. Because there are 52 weeks in a year, bi-weekly payments result in 26 half-mortgage payments, the equivalent to 13 monthly mortgage payments.Full Answer >
The monthly payment on a $275,000 house depends on a number of factors. These variables are based on factors related to the house, the borrower and requirements imposed by the lenders, according to HomeFinder.com.Full Answer >
Saving money for a house involves putting extra money away after expenses as a down payment or to be able to purchase the house outright. Typically, home buyers often set a monthly savings goal, leading to an overall goal of saving 20 percent down or more of a house purchase price.Full Answer >
A good credit score when buying a house is very important but becomes less critical with a big down payment, according to U.S. News and World Report. If a credit score is too low, a home buyer may not even qualify for a conventional loan.Full Answer >