12/07/2017
Mortgage Loan Application Process
Applying for a mortgage require a few documents to get a loan file through underwriting such as: employment status, Income, asset, debts, property information, financial blemishes, type of mortgage, loan estimate etc. These information’s will be gather either by brokers or lenders themselves and will be passed to underwriter. Underwriter is the key decision-maker, they closely evaluate all the documentation prepared by the loan processor in the loan package. They cross check to see if the borrower and property match the eligibility requirements of the loan product for which the borrower applied. They will do a detail affordability checks.
Affordability checks used to be relatively simple to work out what size of mortgage you'd be approved for. Lenders would work this out using a rule of thumb known as the income multiple. They would multiply typically 3.5 × your total income and assume that you could afford the repayments on that sort of sum regardless of your family circumstances, now the Financial Conduct Authority pushing them into a deep affordability checks. But don't worry –the onus on affordability is there to make sure lenders act responsibly, not to lock you out of the mortgage market. Many of the questions in the affordability checks you will be asked are fairly straightforward, but some could cause you problems if you're not prepared for them
