Common Red Flags for Mortgage Loan Underwriters

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.