Underwriting Basics

Discover the key principles and factors that contribute to the mortgage underwriting process.

April 16, 2023

Understanding Lender Policies – Underwriting Fundamentals 101

Lender Policies When we’re providing rental property financing for your investments, it’s super important that we understand the lender policies and requirements. We can’t just work with every lender if you has eight rental properties. Most of the banks are out of the picture, right? So we need to know what the lenders provide for […]

By Scott Dillingham

1 min Read

March 6, 2023 April 14, 2023

The Importance of Shelter Payments – Underwriting Fundamentals 101

Shelter Payments It is very important to factor in a shelter payment when we’re running your application. Now, I disagree with the shelter payments. Some of the lenders charge an outrageous amount of shelter, shelter payment that we have to use on the application. What a shelter payment is, as a payment, we have to […]

By Scott Dillingham

2 min Read

April 12, 2023

Room Rentals – Underwriting Fundamentals 101

Room Rentals All right. So today we’re talking about room rentals. Not every single lender, actually, most of them will not use room rental income if it’s a student rental or rooming house. Generally, the lenders, the major lenders will shy away from this type of property. And then you are stuck doing alternative options […]

By Scott Dillingham

1 min Read

April 10, 2023

Rental Worksheets – Underwriting Fundamentals 101

Rental Worksheets One of the things we need to do while running your application if you own multiple rental properties is fill out a lender’s rental worksheets. Now, not every lender has a rental worksheet, but the ones that do usually offer a very favorable approval or likelihood of approval for you compared to those […]

By Scott Dillingham

1 min Read

April 8, 2023

Rental Income – Underwriting Fundamentals 101

Rental Income This here is super important for real an investor. The lenders have either an ad to income policy for the rental income or they have what’s called an offset policy. And every lender has their own percentage rate. So it can be 50%, 80%, or even 100%, depending on the lender. And if […]

By Scott Dillingham

1 min Read

April 6, 2023

Heat Payments – Underwriting Fundamentals 101

A lot of people don't realize that when you're calculating a mortgage, you have to factor in a heat payments as an expense on the property.

By Scott Dillingham

1 min Read

April 4, 2023

Down Payments – Underwriting Fundamentals 101

Down Payments We’re talking about down payments today. Now, this topic is so thorough that it could go on for an hour. So I’m going to be super, super quick here. When you buy a house for 500,000 or less, the minimum down payment is 5% down. Of course, you have to qualify for this […]

By Scott Dillingham

1 min Read

April 2, 2023

Debt Ratios – Underwriting Fundamentals 101

Debt Ratios Okay, So today we’re going over debt ratios. So as you know, or most of you do know, is that the lenders can only lend so much based on your debt to income ratio. Okay. So every lender has their own rules. Usually you have to be under 39 and 44%. So 39 […]

By Scott Dillingham

2 min Read

March 31, 2023

Construction Mortgages – Underwriting Fundamentals 101

Construction Mortgages All right, guys, you’re going to get a lot of questions on this one, because buyers nowadays, more people are wanting to build than ever before. In some cases, building can be cheaper depending on the builder products used, even assets like a manufactured home. Those loans are being, you know, quite reasonably […]

By Scott Dillingham

2 min Read

March 31, 2023

Cottage Properties – Underwriting Fundamentals 101

Cottage Properties Today we’re talking about cottage properties. The thing is, is, again, everything that I’m teaching you here, every lender is specific to what they will and will not do. So some companies will not do cottages. Some will, but they’ve got to be three season or four season. Right? So obviously the three […]

By Scott Dillingham

1 min Read

March 29, 2023

Construction Financing – Underwriting Fundamentals 101

Construction Financing Today, we’re talking about construction financing. So this one can be a little intricate. There’s a couple of ways to finance the project. So one is for some of our bank partners and credit unions. Okay. The cool thing with having multiple lenders is for your projects is that we can shop around, […]

By Scott Dillingham

1 min Read

March 25, 2023

Commercial Lending – Underwriting Fundamentals 101

Commercial Lending Today I want to talk to you about commercial lending. So a lot of mortgage brokers and agents don’t actually do this and they refer out. We have a dedicated commercial department, so you can actually keep your deals right here in-house. And I know you already know this, but you can keep […]

By Scott Dillingham

2 min Read

Underwriting Basics

Content

Understanding Lender Policies – Underwriting Fundamentals 101

The Importance of Shelter Payments – Underwriting Fundamentals 101

Room Rentals – Underwriting Fundamentals 101

Rental Worksheets – Underwriting Fundamentals 101

Rental Income – Underwriting Fundamentals 101

Heat Payments – Underwriting Fundamentals 101

Down Payments – Underwriting Fundamentals 101

Debt Ratios – Underwriting Fundamentals 101

Construction Mortgages – Underwriting Fundamentals 101

Cottage Properties – Underwriting Fundamentals 101

Construction Financing – Underwriting Fundamentals 101

Commercial Lending – Underwriting Fundamentals 101