FULL UNDERWRITING Form

Instructions and help about FULL UNDERWRITING

(upbeat inspiring music) - [Narrator] Your home loan has gone into underwriting. Great news. Now, what is underwriting? Underwriting is the process that lenders use to determine whether you qualify for a mortgage loan. So how is your application evaluated? We use what are called the four C's. First, credit. The underwriter will pull your credit report based on information from the three major credit bureaus. They will analyze your credit history, payment history, number of open accounts, and the balances on those accounts. Your credit score gives the lender an idea of how well you manage debt. Second, capacity. Capacity is your ability to make the payments the new loan will require. The underwriter will evaluate your debt-to-income ratio which is your monthly debt divided by your gross monthly income. The lower your debt-to-income ratio, the more likely it is that you will be able to make mortgage payments. NFM also makes sure you're employed at the time of closing, with earnings that