The Underwriting Process
The underwriting process is the actual process whereby an underwriter at the bank or lending institution analyzes your San
Diego Home Loan application and risk factors to determine if you qualify for a loan. There are 3 main factors San Diego Home
Lender underwriters will analyze:
Debt-to-Income Ratio- this is your monthly expenses (proposed San Diego Mortgage payment, tax and insurance payment, and any other payments you make on a monthly basis such as a car loan or credit card payment) divided by your gross monthly income. Most San Diego Home Lenders will not allow a debt-to-income ratio greater than 50%.
Credit Scores- Depending on what loan program you are applying for, there is a minimum credit score needed to qualify for that program. For example, in order to qualify for an interest only 30 year fixed you may need a 680 credit score (example only), whereas to qualify for a fully amortized 30 year fixed mortgage you may only need a 620 credit score (example only). Most lenders will take the middle credit score of the three credit bureaus as your qualifying credit score.
Loan-to-Value- This is your desired loan amount divided by the appraised value of your property. The more money you wish to borrow against your San Diego home's appraised value, the higher the credit score you will need to qualify.
To find out more about the San Diego Home refinance or San Diego Home purchase loan underwriting process, please fill out the form to be contacted by a SanDiegoHomeLoans.Org professional or call us at 619-236-9424.