Getting started in real estate or just want to know more?

[Nicholas Salman]

Hey, everyone, today I wanted to give you the underwriting blueprint.  

What are underwriters looking for? A good rule of thumb we follow is IPAC.  IPAC stands for:

Income: How much are you making and how consistent is it? This is also big in calculating the DTI (Debt to income ratio)

Property: How much is the property you are looking to purchase or refinance worth?  Is it up to par with the loan amount you are seeking? A lender will schedule an appraisal to assess the value of the property and, in turn, fund your loan.

Assets: We will have to verify assets in order to be able to close the loan.  If there is no proof of funds for Down payment, closing costs, and reserves, you most likely will be SOL. 

Credit: Often the what is thought of the Gold standard of borrowing, is credit.  Although it is a crucial part in the process it is not everything, just one of the "4 pillars" we like to refer to these as.

I hope this helps all the new and current buyers and investors.  I love getting an opportunity to connect and share stories, mostly being able to help and provide value in any way so feel free to reach out!