When it comes to challenging loan approvals, manual underwriting is your savior.
Have you experienced trouble acquiring a mortgage loan? Do you sometimes wish that an actual person, rather than some faceless computer algorithm, could review your application materials?
Automated underwriting has become the standard for mortgage loans nowadays. Mortgage brokers typically use this approach. It takes a lot less time than completing everything by hand. With automated underwriting, mistakes made by humans are also eliminated. But what if a human opinion is what the bank needs to see to get you a loan? The solution is human underwriting.
What Exactly Is Hand-Held Underwriting?
In a manual underwriting mortgage approval procedure, the lender visually inspects your financial documents to ensure you meet their criteria. In spite of the widespread adoption of automated underwriting systems, human underwriting is still an option for those who find themselves in unusual financial circumstances.
When is Underwriting by Hand Performed?
When a client’s financial condition does not seem to fit neatly into an automated system, SteveKnowsLoans will resort to manual underwriting. Some scenarios where we resort to human underwriters are as follows:
- Assuming a short credit history
- When there is a history of financial difficulties for the borrower
- If a jumbo loan is in the borrower’s plans,
- When requested by the borrower (under certain conditions)
- Being Eligible for a Traditional Underwriting Review
When an automated underwriting system declines your loan application, a human underwriter may be able to help. If you meet the following requirements, SteveKnowsLoans may grant you access to their manual underwriting process.
- Limiting the Loan-to-Value Ratio to 80% is the case if your credit score is 680 or lower.
- The maximum LTV for borrowers with credit scores between 680 and 720 is 85%.
- The maximum LTV allowed with a credit score of 720 or above is 90%.
- DTI and HTI ratios should not go above 43%.
- The maximum allowable HTI is 31%.
- Three on-time payments after the forbearance period ending are required for R&T refinances and purchases.
- To qualify for a cash-out refinance, the borrower must have made all payments due since the forbearance period’s end.
- Borrower cannot waive the waiting period in cases of bankruptcy, deed-in-lieu, foreclosure, or short sale based on “extenuating circumstances.”
Reach Out to SteveKnowsLoans Right Away!
If you’ve had trouble getting loans in the past, a manual underwrite could be the solution. Here at SteveKnowsLoans, we’re committed to seeing you through to the completion of your dream home. Get in touch with us today to learn if a human underwriter can approve your loan application.
Get in touch with one of our loan advisors today!
Call Steven Jackson at 813-616-9411 now!
