Mortgage Underwriting

Mortgage underwriting is the process a lender uses to determine if the risk (especially the risk that the borrower will default ) of offering a mortgage loan to a particular borrower is acceptable.

Mortgage loan approval rests on several specific issues : income, credit history, debt ratios , downpayment and property value (security). A buyer must be able to verify the income needed to service the intended mortgage payments within a verifiable and stable job history or demonstrate substantial net worth and sufficient downpayment. The borrower(s) must have a credit history that shows a record of repaying obligations and monetary responsibility. Additional monthly debt must fall within acceptable limits as determined by the loan program guidelines*.

*To help the underwriter to assess the quality of the loan, banks and lenders create guidelines and even computer models that analyze the various aspects of the prospective mortgage and other debts providing recommendations regarding the risks involved.

Mortgage underwriting is a lender’s way of closely examining a mortgage applicant’s ability to repay a mortgage loan by considering borrower(s) credit history, property value and net worth or downpyment. All lenders lend money based on risk, and they approve or disapprove loans based on the risk of defaults on mortgage payments and repayment. If you’re a low-risk mortgage loan applicant, you’ll experience few mortgage underwriting problems or “mortgage commitment letter conditions” issues. Higher-risk mortgage loan applicants, however, face a greater number of mortgage underwriting problems and underwriter demands to clear detrimental borrower conditions.

Although the underwriting principles and fundamentals for different type of mortgages are the same , due to the nature of different mortgage loans , lenders might use and consider different methods and factors to process Residential, Commercial and Construction mortgages.

What do we do?

Your Mortgage broker should be completely familiar with each lender’s underwriting guidelines to save you time, money and difficulties you may encounter to get your mortgage application approved and eventually funded. We get the best-priced and best-structured mortgage for our clients.

So rather than shopping at multiple financial institutions and negotiating with each financial institution and arm wrestling them to give you the best deal, it’s one phone call and we do the rest for you.

As your mortgage broker we have extensive knowledge of the lenders’ criteria , which could be very different for different lenders. We are closely in touch/connected with more than 50 lenders to find the best solutions for our clients.

By submitting your application to the right lender , we would get you the best mortgage in terms of rate, amount , term and amortization.

Online Application

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Mortgage Details

Purpose of Loan:*

Value of Home:

Mortgage Amount Required:

Approx Date Funds Required(MMDDYYYY):*

Personal Information - Applicant 1

Identification

Title:

First Name: * (required)

Last Name: * (required)

Initial

Date of Birth: * (required)

SIN#:

Home Ph.#*

Work Ph.#*

E-Mail Address: * (required)

Number:

Street Name:

Street Type:

Street Dir:

Unit:

City/Town:

Province:

Postal Code:

Residential Status:

Monthly Rent Payments:

Present Employer

Occupation Type:

Name of Employer:

Industry Sector:

Employer Address:

Number:

Street Name:

Street Type:

Street Dir:

Unit:

City/Town:

Province:

Postal Code:

Length of Employment(YYMM):

Years in Line of Bus:(YYMM):

Annual Income:

Type of Income:

Other Income Source:

Other Income Amount:

Notes for application 2:

Personal Information - Applicant 2

Identification

Title:

First Name:

Last Name:

Initial

Date of Birth:

SIN#:

Home Ph.#

Work Ph.#

E-Mail Address:

Current Living Address(Applicant 2)

Number:

Street Name:

Street Type:

Street Dir:

Unit:

City/Town:

Province:

Postal Code:

Present Employer(Applicant 2)

Occupation Type:

Name of Employer:

Industry Sector:

Employer Address:

Number:

Street Name:

Street Type:

Street Dir:

Unit:

City/Town:

Province:

Postal Code:

Length of Employment(YYMM):

Annual Income:

Type of Income:

Other Income Source:

Other Income Amount:

Notes for application 2:

Financial Information:

Assets

Type

Where/Financial Institution(s)

Amount/Value

Cash in bank

Deposit on property being purchased(if applicable)

Automobile: Present value

Value of present home(if owned)

Investment/vacation properties

Stocks, bonds, Mutual funds etc.

RRSP's.

Other Assets

Total

Liabilities

Type

Where/Financial Institution(s)

Balance Owing

Monthly Payment

Bank Loans

Credit Cards

Owing on Automobile

Amount owing on first mortgage

Amount owing on second mortgage

Mortgage number of first mortgage

Finance company loans and other debts

Alimony/child Support

Total

Net Worth(Total Assets - Total Liabilities = $

Note to broker: (Max 200)