Getting A Mortgage Loan With Child Support And/Or Alimony

June 5th, 2021
divorce

I sometimes have people ask me what the requirements are to count alimony or child support income towards qualifying for a mortgage.

First we need a copy of a divorce decree or separation agreement (if the divorce is not final) that explains all the terms of any alimony and child support, and any other financial arrangements that may have a positive or negative impact on your mortgage application.

In general, we have to review the payment history to determine if it’s been stable income for the borrower. We have to document no less than six months of the borrower’s most recent regular receipt of the full payment. Read the rest of this entry »

Bookmark and Share

Automated Underwriting Versus Human Underwriting

August 5th, 2018
approve or reject

When you’re ready to buy a new home, one of the first things you have to do is take steps to get your financing in place. Mortgage approval is based in part on an automated underwriting process. Unless you plan to pay in cash, you need to secure a mortgage loan. It is beneficial to get a pre-approval letter from a mortgage lender before you even make an offer. Having your loan pre-approved can show a seller you are a serious buyer with adequate funds. You can also reduce the risk of the contract falling through.

Lenders typically use one of two underwriting processes for mortgage loans: automated and manual. Understanding the basics of how these types of loan approval work can give you confidence when applying for your mortgage.  Read the rest of this entry »

Bookmark and Share