Quick Mortgage Tips – Stated Income Underwriting

April 17, 2007 No Comments »

With stated income becoming the latest “victim” of the sub-prime mortgage world, it is increasingly important to ensure you submit your stated loan application carefully.

So many borrowers haphazardly submit loan applications to banks and mortgage lenders with employment information that can’t be verified, or with an inflated monthly income and nothing to fortify the claims.

If you claim you make a certain amount each month, check out salary.com to see what makes sense for your employment type in your specific area. The underwriters will be checking, so you better too.

Also, when listing your business phone number on the 1003, make sure it is the correct phone number, and if it your home phone or cell phone (for you self-employed borrowers), make sure it has a professional, work-related recording.

Underwriters aren’t going to believe you make $10,000 a month if your phone message says, “Hey you’ve reached Joe, leave a message after the beep…”

If you are self-employed or work for a small business, make sure it is listed at 411.com. Underwriters are usually much more suspicious of applicants who work for unlisted companies that essentially can’t be verified.

As I mentioned in another post, stated income loans are becoming increasingly difficult, so make sure you are extremely thorough and pre-screen your application before submitting it to a lender.

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