Rates are up today. Today’s rates with NO lender fees ARE 4.5% on a 30 year fixed, 3.625 % on a 15 year fixed and 2.956% on a 5/1 ARM (click here to get the details).
Today I want to talk about the true facts of underwriting and how it works in simple terms.
I explain in today’s video:
Your loan officer takes your application and enters your information into a automated underwriting system like DU or LP. The system will determine your eligibility based on the information entered into the system. It looks at credit, loan to value, type or loan, type of house, income and many other factors to come up with a list of automated underwriting guidelines or stips as we call it in our business. Underwriters will possibly add a few stips if necessary due to investor overlays and you now have a complete list of stips you need to get your loan closed.
Every stip needs to be cleared before your loan will be clear to close. One more time, EVERY stip needs to be cleared before you can go to closing.
What does this mean? It means if you have an 800 score and 45% LTV you still need to document your income or large deposits like everyone else. Investors don’t care if a person is perfect in 9 out of 10 areas. They need to be a 10 out of 10. NO exceptions. Get your complete list of stips ASAP in your loan process and get your lender everything they need. That will ensure you secure the low rate you worked so hard to get. Your stellar situation does not allow you the freedom to overlook some smaller stips that and investor wants. What the investor wants…the investor gets! Like it or not!!
It would be awesome if you could help me in my mission to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!
See you tomorrow!
PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002