Considering the underwriting of a borrower lecture, develop an example such that Step 2 wins and is used to determine the maximum selling price that the borrower can afford. In your example, you must change all of the parameters (GMI, BR, TR, loan terms, etc.) from those found in the notes
Answer
After a borrower has been pre-approved for a mortgage loan, sought a prospective home and even suggested an offer, the next biggest challenge is the underwriting process. The mortgage underwriter is considered as a gatekeeper of the lender. Therefore, unless a borrower is able to prove to the underwriter thoroughly, the loan may not be accepted after all. It is the responsibility of a borrower to prove to the underwriter that they are creditworthy and thus qualify for the loan to be issued. False information given when undertaking a loan application is the responsibility of the underwriter to detect (Sichelman 5). The fact that the underwriter has so far accepted the information provided by the lender so far is an important factor to bank on at this step. As a real estate detective, the underwriter undertakes to investigate the creditworthiness of the borrower and finances. They therefore require very high standards for a lender to qualify for a mortgage than it is for other forms of borrowing.
Numerous parameters are considered important while underwriting a mortgage. The first parameter is the capacity to afford monthly payments. This includes more than just the income earned per month. It considers aspects such as occupation, future opportunities, employment history, educational background, training, and even age. Stability and durability are the essential components of capacity. The second parameter is the character demonstrating the willingness to remit the monthly installments. The borrower should be able to effectively demonstrate the ability to handle the debt once it is approved. The third important parameter is the capital which comprises of the liquid assets. A borrower can easily beat the underwriter by paying 25% to 30% down-payment. Collateral is another important parameter considered by mortgage underwriters. The lender will choose an appraiser to evaluate the collateral. Finally, a borrower should demonstrate compliance with the terms of the loan.

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