Let’s Get You Ready
Understanding the Underwriting Process
There are several elements of the traditional underwriting process that any mortgage lender will want you to demonstrate. These are important to understand so that we can be prepared to secure a conventional mortgage and so the Nest Egg Fund can be a part of investing in you and your family.
On Your Journey
We Can Help!
The Nest Egg Fund was created to ensure that lower income families are able to access downpayment and closing assistance to get into their first home and accelerate their intergenerational wealth building. The journey is just beginning with the purchase of your first home, and that requires being “mortgage-ready.”
If you have not yet confirmed that you are pre-qualified for a conventional mortgage with one of our lending partners M&T, Saratoga National Bank and NBT Bank — you cannot use the Nest Egg Fund. Only after being prequalified for a conventional loan can you proceed.
How Lenders Determine Credit Worthiness
Here are 5 major factors to consider.
Proof of Income
You need to be able to demonstrate that you have a source of income. While being self-employed can require more effort to document your income than a W-2, you must ensure that lenders understand how your income will allow you to pay monthly on your mortgage.
Employment Verification
You need to be able to verify your employment status through an employer verification letter, pay stubs, W-2, 1099s and/or tax returns. Additional documentation is required for individuals who are self-employed.
Proof of Assets
You must show the source of any cash or other assets, such as savings in a bank account or investment account statements, that you will use to purchase your home.
Other Key Documents
Your FICO credit score is a composite of these 5 things, and will be pulled and assessed during the loan underwriting process. Your credit score will help determine the interest rate on your loan. Learn more about what informs your credit score here.
Credit Score
Your FICO credit score is a composite of these 5 things, and will be pulled and assessed during the loan underwriting process. Your credit score will help determine the interest rate on your loan. Learn more about what informs your credit score here.