Answer :
Answer:
A. Three important Items to double check before submitting a loan application to underwriting.
• Completeness of data : One has to be sure that all important details are captured hence none is left out. It means that there are no missing information on the application.
• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.
• Documentations required by the loan programme. All Documentations required by the loan programme must be double checked before submitting a loan application to underwriting.
B. List at least two things you would be sure to tell a borrower in preparation for closing
• I will seek clarity in terms of the money borrower would be bringing to the closing table.
• The date,time,venue of closing are essential for the closing hence will be communicated to the borrower. Also, there are no right or wrong answers that may be asked or given by the borrower during the closing.
C. List at least three calculations that are typically used during the course of mortgage loan transaction.
• Income calculation
• Front end and back end ratio (DTI ratio)
• Monthly payment.
Explanation:
The three things that Eric has done before making a loan application are as follows:
- Careful examination of loan application
- Communication to the borrowing party regarding the closing of the loan
- Computations related to the loan transaction
What is a loan?
A loan is an amount given to the borrowing party at an interest rate that can be annual, monthly, or quarterly basis by the lender.
Eric should make sure the three following things:
- He should carefully read the loan agreement and its causes before accepting it by signing the document. He must ensure that the data is accurate and the calculations are correct in themselves.
- He should communicate with the borrower about the closing time period in advance so that no delay could happen.
- He computes the monthly installment to be paid by the borrower on the basis of his income and debt-income ratio.
Therefore, the three things which Eric should check have been explained above.
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