Automated Approvals

You hear a lot of brokers and lenders use the word, automated approvals. When a file is submitted it is ran thru an automated system. If you receive an “approval” most times you should good to go. The issue that comes up is, sometimes you will get an approval with a very high debt ratio or a lower score than most. Even though the system, which is a Fannie or Freddie system, approves it, some banks will not take them because it exceeds their individual guidelines. As a borrower you need to ask which banks the broker is dealing with and if the automated approval will be accepted by the particular bank. There are a few banks that will take any approval, regardless of FICO score and debt ratio. A good broker should be very aware of which banks take which approvals. This is very important and can make or break a lot of loans. Compensating factors help loans receive automated approvals when they exceed certain guidelines. Some of those factors can be; strong assets, longevity in their current job, longevity in their current home, and FICO, and low loan-to-values.

DC Metro are mortgage broker
Rockville Homes