Why was my underwriting denied, even if I was preapproved?
UPDATE 06.05.2018: Mortgage guidelines are beginning to loosen so even if you've been turned down in the past, you very well may be approved today. outside of the box credit and income scenarios - OK! Even if you have started the loan process in the past now is the time to to work with Midwest Equity Mortgage to secure a new home loan using common sense underwriting.
While underwriting approval may not be the greatest of your concerns, it is still an aspect to keep in mind when going through the loan process. If you are pre-approved, don’t assume it's an automatic final approval, because pre-approval is only the first step in the loan process. Even if you are pre-approved, your underwriting can still be denied. Being pre-approved will make sure you have a good credit score, verify your income, and assure that you will be able to pay back the loan amount. But again, pre-approval is only the first process to getting a loan. Once you’ve been pre-approved, your file must then go to the underwriter who will take a deeper look into your financial stability. Your loan is never fully approved until the underwriter confirms that you are able to pay back the loan.
Underwriters can deny your loan application for several reasons, from minor to major. Some of the minor reasons that your underwriting is denied for are easily fixable and can get your loan process back on track. These can include additional documentation verifying your income and employment or a letter of explanation as to why you had a large withdrawal from a bank account. If unresolvable problems are found during the underwriting process then you may need to take some time to resolve these problems before completing the loan process. Some of these problems that might arise and have your underwriting denied are insufficient cash reserves, a low credit score, or high debt ratios.
If you are really determined to complete the loan process then it is best for you to maintain your financial stability status. Here are a few suggestions to help you do so:
• Don’t do anything that could lower your credit score such as opening new charge cards.
• Don’t switch jobs - Demonstrating employment stability is important!
• Save up as much money as you can to devote to closing costs, down payments, etc.
• Continue making your other payments on time, pay off your debts, and don’t do anything that will increase your debts
• Don’t deduct funds from your savings account
UPDATE 06.05.2018: Self-employed or difficulty documenting your income? Midwest Equity Mortgage can service a lot of unique and complex credit and income scenarios. Start online or connect with us today and ask us about our NEW ONE MONTH BANK STATEMENT PROGRAM!
- ELIMINATE RED TAPE WITH A SINGLE BANK STATEMENT
- MAXIMIZE CASH-OUT OR PURCHASE POWER. MORTGAGE LOANS TO $3M WITH $1M CASH-OUT.
- CLOSE IN AS FAST AS 14 DAYS!
Where you live is too important. Even if you have been denied before contact us today for a thorough analysis of your unique circumstance.
GET STARTED NOW!!
*** Low Doc programs may have a higher interest rate, more points, or more fees than other products requiring full documentation.
Midwest Equity Mortgage, LLC Now more than ever, you need to work with someone you can trust. Ask us about our A+ rating from the Better Business Bureau and you will know: you have found your lender! Why are you still waiting for the â€œbig bankâ€ to call you back? Get in touch with someone who cares-TODAY!
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All information provided in this publication is for informational and educational purposes only, and in no way, is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Midwest Equity Mortgage, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Midwest Equity Mortgage, LLC do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.