Common Reasons Your Mortgage Application is Denied
Securing a mortgage in the current housing market can be challenging. With rising mortgage rates, soaring home values, and a pace of home price appreciation that far exceeds wage growth, getting a mortgage approval is far from guaranteed. This blog post aims to clarify the mortgage approval process, highlight typical obstacles, and provide advice for prospective homeowners. The Mortgage Underwriting Process Mortgage underwriting is where lenders assess your financial situation. This process involves a detailed examination of your financial documents - bank statements, tax documents, W-2s, pay stubs, and any additional information requested by the lender. The objective is to determine whether you qualify for a loan. The traditional, more subjective methods of assessing creditworthiness have been replaced by automated underwriting software systems like Desktop Underwriter for Fannie Mae loans…