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Mortgage - Qualifying for a Mortgage Many people think the process for applying including getting approved for a mortgage is shrouded in secret indecipherable ceremonies that make little sense. Nothing could be further from the truth. Underwriting is just a good common sense approach for deciding who should including who should not be granted a loan. If a friend or relative came to you including asked to borrow $100, what will you say? If it was your spouse or kids, probably yes. If it was a distant relative, you will probably ask yourself the following questions? 1. could he pay me back? 2. Is he a flake or someone that might be trusted? 3. If he doesn’t pay me back voluntarily, is there some other way to obtain my dollars back? 4. Is he working or does he have the means to pay me back? You could draw on personal experiences. Has he asked me for dollars before? If he did, did he pay me back? Was it a hassle to obtain the dollars back or did he send me the dollars as agreed. What have you heard regarding him from other relatives? The underwriter at the bank absolutely cannot judge someone they have never met using the same criteria. Their job is to make a decision, usually in less than a particular hour, whether the bank should loan a perfect stranger hundreds of thousands of dollars. They use the following criteria: A. Ability to pay B. Willingness to pay C. Security These are the same 3 criteria you use at the time trying to decide to loan your deadbeat cousin money. It all makes sense. All you have to do at the time applying for a loan is to keep these 3 thoughts in mind.
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