Credit

Underwriting Credit Conventional Mortgage

There are three parts to underwriting credit for a conventional mortgage:

Credit Scores

Credit Report

Trade Lines

All three sections are equally important.  If any of the three are lacking in some way the approval of the loan request is in jeopardy. 

Even if the AUS shows provides an Approve Eligible response the underwriter may not sign off on the approval if there is a problem.  Theoretically the underwriting software should be accurate but nothing is 100% which is why human eyes are required to review the entire loan package.

Back to Conventional Mortgage Guidelines Index

Credit Scores

Fico Scores Conventional Mortgage  Most home buyers believe if their Fico Score (credit score) is above the minimum threshold they are good to go. This is not the case at all.  The Fico Score is only the minimum threshold.  Underwriting credit is a lot more complicated than a simple a line drawn in the sand.  …

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