Regardless of the size of your mortgage, the underwriter needs to be certain that you are able to make your monthly mortgage payments over the life of the loan – whether it’s in the amount of $500,000 or $5 Million dollars. It’s important to be thorough in explaining what you do for a living, the health of the industry, and the likelihood of continued employment.
If you’re self-employed, you’ll need to show a company website, business licenses and anything else that will help to secure your loan. Having a good to great online reputation is important since underwriters may even do a google search for you. Some other things the underwriters look at include:
Assets – Documentation of assets is critical, and they have to make sense in relation to the income stated on the application
Credit Score – Having high scores and proof of a responsible borrowing history, Underwriters may also look for other sizeable debts that the borrower has had a positive experience with.
Property – The landscape has changed for appraisals, so don’t be surprised if multiple appraisals are required for financing approval on the property.
Profiling – Basically, the overall borrower profile and supporting qualifying documentation needs to make sense to an underwriter.
A good rule of thumb to remember when trying to qualify for any non-conforming loan, including a jumbo loan, is to have your paperwork organized ahead of time, as well as a good explanation for anything that may raise potential questions by an underwriter about your ability to repay the mortgage over the term.