Once all the required documentation has been gathered, your mortgage loan application is submitted to Wyndham Capital’s underwriting department. Loan underwriting is the process of reviewing all of the information and making a decision as to whether a borrower qualifies for a loan.
There are several factors involved in the Wyndham Capital loan approval process of your mortgage application:
2. How much long-term debt (debt that will not be paid within the next 10 months) do you have?
3. What would your monthly mortgage payment be as a percentage of your income?
In general, we require that your total monthly mortgage payment-principal, interest, property taxes, mortgage insurance, hazard insurance and any homeowners association dues-be no more than 28% to 33% of your monthly gross income.
4. How much debt do you carry?
You may have car loans, student loans, credit cards, child support, alimony or other monthly expenses. In general, lenders require that the total of all your monthly expenses (excluding basics like utilities and groceries) not exceed 36% of your gross monthly income.
5. What is your credit history?
Your credit history helps us evaluate your ability to manage debt. It reflects how repayment of your bills has been handled in the past. In some cases where borrowers don't have an extensive credit history, Wyndham Capital will consider alternative payment records, such as rental payments and utility bills.
6. What is your employment history?
You will need to provide proof of employment. If you're self-employed, work on commission or have been at your job less than 2 years, you may need to provide additional information about your work history.
7. How much does the property appraise for?
An appraisal provides an estimate of the market value of the home that you want to buy and is based on similar homes sold in the neighborhood. Lenders usually grant up to a certain percentage of the property's value in a mortgage loan. This percentage is called the loan-to-value (LTV) ratio. The rest of the property value is covered by your down payment.
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