Princeton Capital Blog

Common Red Flags for Mortgage Loan Underwriters

August 2nd, 2012

Loan underwriters frequently see red flags that could prevent borrowers from getting a loan. John Ellis, our Senior Vice President, laid out some red flags he frequently sees:

  • Borrowers buying properties separately when they are married
  • Refinance where the appraised value is significantly higher than the recent acquisition cost
  • Frequent employment changes / Recent increase in pay
  • Recent undocumented deposits
  • Lack of credit history
  • Recently issued social security numbers
  • Borrowers who have recently purchased other/multiple properties
  • Parties in a transaction who share a last name (buyer, seller, Realtor, loan officer, appraiser, escrow officer)

A lot of these are avoidable, so be sure to keep this list in mind when applying for a home loan.

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