Are you anybody who wants to gather all the essential deets related to the loan underwriting process? Well, we have got your back.
There is no denying the fact that underwriting is a vital part of the loan procedure. It is during this procedure when the professional finds out whether or not the applicant is capable of applying for the loan. A commercial loan underwriter will also find out whether the apppicant meets the eligibility criteria. The entire procedure takes about hours and in some cases more than a week. Hence, if you wish to apply for a loan, you need to first find out all the information and then get started.
The loan origination software professionals make sure that everything is taken care of. Since, there are a plethora of reasons that may be responsible for the rejection of the application, these professionals make sure that you make no mistake while getting started. You maybe wondering what precisely are the factors that lead to the rejection of the loan application. Beneath are some of them. Give it a read and also find out details related to the automated underwriting system.
Factors affecting loan underwriting
- Credit score: This factor is responsible for the rejection of the application in most of the cases. To those of you who do not know what credit score is, it basically reflects your creditworthiness. This means that the credit score shows how you have been managing to repay the loan amount without any hassle. If your credit score is up to the mark, then there are chances that your loan application will be accepted. Want to check your credit score. Do it now because it is free. Yes, checking the credit score once in a year is free of cost.
- Income: Just like the credit score, your income is also one of the factors that matters during the application. There are many writers that fix a specific amount of income. And because loan repayment is their top most priority, they want to make sure that the applicant has sufficient income.
- Liabilities and debts: Another factor affecting your underwriting is debts and liabilities. If you are in a situation where you have to serve a lot of debts and loabilities, there are chances that your application may not be accepted. You need to understand that the underwriter needs to make sure that you have enough money in your kitty to serve the loan repayment.
These are some of the factors that affect your underwriting process. Keep in mind that it is important to meet all the requirements before you get started. In case you are not eligible or fail to maintain any of the above mentioned factors, your application won’t be accepted.