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Underwriting is one of the most crucial stages your loan application goes through before you are given a final approval to close on your loan. It might sound intimidating, but underwriting isn’t the headache you might think it is. Here’s a look at what happens during underwriting.
What is Underwriting?
Underwriting is the process of evaluating and reviewing a potential borrower’s creditworthiness, ability to repay, financial profile, submitted documents, and collateral to determine whether the lender can fund the loan. Essentially, underwriters have the final say in whether you qualify for a loan. Remember all those financial documents you had to send with your mortgage application? After the paperwork has been compiled into a loan package by the processing team, it goes to underwriting for a comprehensive inspection. During the first underwriting phase, the team reviews loan conditions for credit, income, asset, mortgage insurance, and hazard (disaster) insurance requirements. The second phase of underwriting happens towards the end of the mortgage process, where underwriters do a final check of the conditions from the initial approval. The turnaround time for underwriting is usually two days, after which the loan file goes back to the processing team.
What Happens in Underwriting?
Risk Analysis
To assess your potential risk, underwriters will do a deep dive into your credit score, credit history, income and net worth, and debt-to-income ratio (DTI). A strong credit score is a good indication of how financially responsible you are. Having a solid history of on-time payments increases your score and gives lenders more confidence that you won’t miss payments. Underwriters use your income and assets to determine whether you can afford mortgage payments. DTI measures how much money you have left after paying your existing debts. Having a lower DTI will improve your chances of getting approved.
Asset and Document Verification
Underwriting will review in detail the documentation provided to validate your income and assets being used in the transaction. These documents come from both you and other third parties, such as your employer or a financial institution. An underwriter’s job is to scrutinize and authenticate the documents in your loan file and make sure they meet the guidelines for the loan type you have applied for. Should any questions arise, you may be asked for additional information or an explanation. The underwriter also ensures the files don’t contain suspicious information or raise a red flag for potential discrepancies. For example, a large deposit into a bank account can warrant a request for an additional explanation or documentation to ensure funds you are using for closing costs or a down payment are coming from a valid source allowed by the guidelines set forth by the agencies.
Reviewing Guidelines
Underwriters also check your financial profile and loan details against various lending guidelines before they make a decision. There are lending criteria for different loan types, programs, and promotions, so it’s essential that all underwritten loans adhere to those regulations. Underwriters often have to think creatively when faced with ambiguous situations, which can prompt them to ask for additional details. Underwriters also check that the appraiser’s choice of real estate comparisons (comps) support the appraised value as determined by the appraiser and ensuring the collateral is supported by the appraisal.
How You Can Help During Underwriting
Since your application goes through multiple rounds of underwriting, it can feel stressful wondering whether your loan will be approved or not. To help make things smoother for yourself and your lender, make sure you provide all the needed documents at the start of your application in the correct format. Stay in close communication with your lending team and be prepared to answer any questions and send supplementary paperwork as soon as possible. The sooner you can provide the information, the faster the underwriters can work through your file. It’s crucial to be honest about your finances, as trying to hide things will prolong the process and be discovered nevertheless.
As long as you’re providing clear and concise information and providing necessary documentation in a timely manner, underwriting is nothing to be scared of. Be patient during this time and remember that your lending team is on your side to help you become a homeowner!
If you have any questions or want more information about the mortgage process, contact one of our Licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
SARASOTA, FL, June 12, 2023 – Team Stettler, an NFM Lending branch located in Sarasota, FL, is pleased to welcome Alec Stettler to the team as its newest mortgage loan originator. He will be joining one of Southwest Florida’s most respected and experienced mortgage groups, led by his father, Branch Manager Robert Stettler.
Stettler graduated from Colorado State University in May of 2022 and became fully licensed to originate mortgages soon after. “The values of hard work and dedication were instilled in me at an early age, and I carry these same values with me today,” said Stettler. “I am passionate about providing a homebuying or refinancing experience that exceeds my clients’ expectations, and getting to work with my dad at NFM Lending gives me the opportunity to do that!”
“I am extremely excited to have my son working for me in the mortgage industry,” said Robert Stettler. “The industry is becoming a rapidly aging field, and it is good to have young professionals entering the field to bring fresh thoughts and ideas to an ever-changing industry.”
The NFM branch will continue to provide the same commitment and dedication to borrowers, ranging from first-time homebuyers to seasoned buyers looking for their next home, a second home, or investment properties.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies include Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
For many aspiring homeowners, coming up with a down payment is a significant obstacle standing in the way of homeownership. While having a 20% down payment isn’t required to buy a home, it can be challenging to gather enough funds to start the home buying process. Read on to learn about different ways to come up with a down payment.
Increase Savings
Saving money is perhaps the obvious first choice when it comes to collecting a down payment. The process of putting away extra money usually happens gradually, so it’s best to start a dedicated savings account as soon as possible. Increase your savings potential by creating and maintaining a household budget. You might also consider starting a side hustle or asking your employer for a raise to increase your cash flow. Growing your savings will be beneficial when you’re ready to begin your home buying journey, even if you find you won’t need much for your down payment.
Down Payment Assistance
Down payment assistance (DPA) programs are an underrated way to partially or fully subsidize your down payment. There are many DPA programs offered to homebuyers at the federal and state level, from both public and private institutions. DPA programs are often tailored to first-time or low-income buyers, but repeat homebuyers may be eligible for certain programs. The DPA funds can come in the form of a grant or a low interest second mortgage that may be repayable or forgiven after a set amount of time. If you’re part of a particular profession, such as teaching or law enforcement, there are DPA programs designed to help you become a homeowner. Taking advantage of DPA allows you to secure your dream home and save for other expenses. Make sure to ask your loan originator if you qualify for any down payment assistance programs.
Gift Funds
Your down payment doesn’t have to come entirely from you; all or part of it can come from family and friends in the form of gift funds. In order to use gift funds in your down payment, have your benefactor send your lender a gift letter detailing the amount given, their relationship to you, withdrawal dates, and a statement that repayment is not expected. Your lender may also need to see accompanying withdrawal and deposit slips to source the money. It’s important to know that if your contributor expects you to repay the gifted money, it will be considered a loan and will be factored into your debt-to-income (DTI) ratio.
Leverage Your 401(k)
401(k)s are meant to be accessed upon reaching age 59 ½ , but tapping into it earlier can boost your down payment amount if needed. You can either use a 401(k) loan (if offered by your employer), or withdraw funds. Both methods allow you to access cash on hand without going through a lender or credit check. A 401(k) loan lets you borrow against your retirement savings and must be restored within five years with interest. Your employer may pause 401(k) contributions until the loan is paid back. Withdrawing money from your account will lead to a 10% penalty fee, and any amount you remove will be subject to an income tax. You will also forfeit any tax-free retirement earnings that you have accrued. For these reasons, this option is best used only as a last resort. It’s essential to consult with a financial advisor so you fully understand what’s involved.
Getting a down payment ready doesn’t have to be the thing that stops you from achieving homeownership! If owning a home is something you want to accomplish, it’s ever too early to start saving and preparing for one of the most important purchases of your life.
If you have any questions about buying a home, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
NFM Lending is not a financial or tax advisor. You should consult a financial advisor to assist with your financial goals.
Medford Lakes, NJ, March 17, 2022 — Mortgage veterans Mack Dadyan and Larry Colangelo announced today that they have joined NFM Lending in their Medford Lakes, NJ branch located at 4 Trading Post Way. The branch, specializing in residential mortgages throughout Southern New Jersey and Philadelphia is led by Branch Managers Dana Gounaris and Ron Gosewisch.
“We are excited that Mack Dadyan and Larry Colangelo chose to join our team at NFM Lending,” said Gounaris. “They have both demonstrated that they are a top originating team in our market. We are glad they saw the value of our partnership and we are thrilled about the future together.”
Dadyan and Colangelo, whose reputation among clients and business partners have led them to become top mortgage consultants in the nation, conducted an exhaustive search for the right mortgage company.
“After spending the good part of five years as a mortgage banker, I had a clear understanding of the issues that the banking system faces,” noted Dadyan. “There is a dire need for a streamlined, efficient, and technologically comprehensive mortgage process. After investigating 36 companies and interviewing six, I discovered that NFM Lending was the obvious choice. They are by far the most forward thinking and proactive company in our marketplace. Their desire to grow with the loan originator and provide them with the technological resources and tools to manage market changes was the separating factor. Most banks and mortgage companies want the loan originator to look to them for solutions, and those companies then propose one corporate solution to all problems, whether that solution is beneficial to the loan originator or not. NFM Lending was different. They recognize that every loan officer is unique and may require unique solutions to their own individual problems. So, they encourage loan originators to bring the solutions that they require, and NFM works to implement these solutions as quickly and painlessly as possible. They recognize that the loan originator is their own brand and that NFM must first provide us the support to promote our brand. So we feel confident pushing out and acknowledging the corporate brand of NFM. We are excited for new beginnings and to have continued success under NFM.”
Dadyan and Colangelo will focus on expanding NFM’s flexible and powerful lending platform to better serve Southern New Jersey and Philadelphia community families with exceptional customer service. The branch’s goal is to continue to provide the same commitment and dedication to borrowers, ranging from first-time homebuyers to seasoned buyers looking for their next home, a second home, or investment properties. NFM Lending offers Conventional, FHA, VA, USDA, FNMA, Jumbo, and many other loan options to fit every borrower’s need.
For more information, please contact:
Mack Dadyan
Senior Loan Originator
NMLS# 1417652
4 Trading Post Way
Medford Lakes, NJ 08055
856-813-0475
mdadyan@nfmlending.com
https://nfmlending.com/mdadyan
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 47 states and the District of Columbia. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, Bluprint Home Loans, Freedmont Mortgage Group, and Elevate Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, September 30, 2020 — NFM Lending is proud to announce it was named one of the winners of the Best Places to Work 2020 by Baltimore Business Journal.
Every year, Baltimore Business Journal (BBJ) conducts a months-long nomination process and online survey of local companies. The survey was limited to employees in the Greater Baltimore area presently employed by the companies they rated. The BBJ explains the Best Places to Work as a “program [that] measures a wide range of research-validated workplace factors that impact employee engagement and satisfaction. Best Places to Work foster a workplace where employees willingly go above and beyond in their work, advocate for the organization and intend to stay into the future.” Finalists are placed into one of four categories based on the number of employees: micro, small, midsize, and large. Only 10 companies per category were named finalists; NFM Lending was the second place winner in the large category.
“NFM is proud to accept this award as one of the top workplaces in the Baltimore region,” said Gene DiPaula, Vice President of Communications. “It’s a reflection of how we all feel about working for such a great company that has made a tremendous effort to keep everyone engaged and connected during these difficult times. Starting with only three employees in a tiny office down on Fleet Street, it really was built from the ground up by the Silverman family, along with our incredible current and former employees. To all of them, we thank you for getting NFM to where we are today.”
NFM Lending prides itself on its exceptional company culture. Their unique culture allows employees to feel more like family than anything else. NFM is dedicated to making employees feel appreciated by regularly recognizing their contributions and celebrating milestones. The company celebrates birthdays and work anniversaries and applauds work ethic through weekly employee spotlights and company value awards. Members of the NFM Family build strong relationships with each other through holiday celebrations, frequent service opportunities, and team building events. NFM has created a warm, fun environment that constantly fosters growth and community.
In addition to this award, NFM Lending is consistently recognized for its exceptional company culture. Other awards include: ‘50 Best Companies to Work For’ and ‘Top 100 Mortgage Companies’ by Mortgage Executive Magazine; ‘Top Work Places’ by both The Washington Post and The Baltimore Sun; and “Top Mortgage Employer” by National Mortgage Professional Magazine. NFM Lending is proud of these accomplishments and looks forward to another successful year.
NFM Lending is a mortgage lending company currently licensed in 41 states in the U.S. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, and Freedmont Mortgage Group. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender.™” For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
Have you ever wondered how paint colors get their names? When there might be more than 50 variations of a color, marketers need to get creative!
LINTHICUM, MD, December 1, 2018— NFM Lending is proud to announce that it was named a Top Work Place in the Baltimore area by The Baltimore Sun. This is the seventh consecutive year that NFM Lending has received this honor.
Each year, The Baltimore Sun distributes a survey to employees of Baltimore area workplaces. The survey analyzes the job satisfaction and engagement of the employees along with the values and organizational health of the company.
“Seven years is not a fluke,” said David Silverman, CEO of NFM Lending, “…and those that have been with NFM for 10, 15, or 20 years might tell you the culture has basically remained unchanged. It’s truly humbling when the people you work with love where they make their living. It’s our people who keep us grounded and focused on what matters…. taking care of each other, our clients, and our community. We strive to get better as a team year after year and we look forward to another opportunity to make the list in 2019.”
NFM Lending prides itself on its exceptional culture. The company fills the employees work environment with encouragement and teamwork, building a positive workplace that rewards both commitment and performance. Employees are also encouraged to voice their questions and concerns directly to management so that they can be addressed promptly and correctly. Managers often surprise staff members for their birthdays, and the company holds contests, holiday celebrations, and other initiatives to encourage collaboration and show employees their appreciation.
In addition to this most recent award, NFM Lending has been recognized many times for its exceptional company culture and service. It has been named one of the Washington Post’s Top Work Places in the Washington, D.C. area for the last four years in a row. Also in 2017, it was named as one of Mortgage Executive Magazine’s Top 100 Mortgage Companies in America, as well as Scotsman Guide’s Top Mortgage Lenders. NFM Lending is proud of each member of its team and the work they do to make NFM a Top Workplace.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 29 states in the U.S. The company was founded in Baltimore, Maryland in 1998 and this year is celebrating its 20th anniversary. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender.™” For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Twitter.
NFM Lending (formerly NFM, Inc.) is pleased to announce they ranked in the “Top Mortgage Lenders 2013” by the Scotsman Guide.
Scotsman Guide compiled a list of the nation’s top 75 mortgage lenders by overall volume. Entries were accepted between February 10 and March 28, 2014, along with written verification of each company’s loan volume from a certified public accountant, the company’s chief financial officer, or a similar source.
“We are honored to be included amongst so many well accomplished and successful companies,” said David Silverman, CEO of NFM Lending. “We are especially proud that our quick transformation from primarily refinance to over 80% purchase has happened so successfully and quickly. I am proud of our team and with our collective efforts we will climb this list rapidly towards the top.”
NFM Lending (formerly NFM, Inc.) was founded in March 3, 1998 by David Silverman and his wife Sandy. The company started as a small brokerage shop with 4 loan officers, and it is now a multi-state lender with more than 200 employees, over 29 retail branches, and is licensed in 30 states.
For more information please contact:
NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
www.nfmlending.com
About NFM Lending
Come join NFM Lending, a highly successful and multi-state company that is at the forefront of the mortgage lending industry. NFM Lending started out as a small brokerage shop and has grown to be an award winning full-service residential mortgage lender. We have been ranked one of the “Top Mortgage Lenders” in 2012 and 2013 by the Scotsman Guide; one of the “Top 100 Mortgage Companies in America 2013” by Mortgage Executive Magazine; and one of the “Fastest-Growing and Largest Private Companies” by the Baltimore Business Journal for 2012.
At NFM Lending, we pride ourselves on working hard to build a positive and collaborative work environment for its employees. We have an open door policy which allows an open line of communication between management and employees. And it is because of these values that NFM Lending has been named one of the “Top 50 Best Companies to Work for in America” in 2013 by Mortgage Executive Magazine; and named a “Top Workplace in Baltimore” by The Baltimore Sun in 2012 and 2013.
If you want to work for a company that has a deep commitment for our communities, dedication for building a positive culture for our employees, and passion for servicing our clients, come work with us!
Link to online press release: www.wiredprnews.com