Underwriting Explained

What is the 4506-T Form?

by Mortgage Nerd on October 29, 2011 · 0 comments

In a nutshell the 4506-T form is an IRS form that your mortgage lender uses to retrieve a transcript of your tax returns. They use this transcript to match the #’s against the W2’s, 1099’s, and 1040’s (tax returns) that you submit to your loan officer. It serves as a validation tool for mortgage underwriters […]


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Why Is The Underwriter Asking For That?!

by Mortgage Nerd on June 23, 2011 · 4 comments

I hear this statement a lot!…”Why is the underwriter asking for that?!” Lately my response has been…”Because mortgage underwriters don’t use common sense any more”. I know I know,  it’s a terrible explanation but it’s a lot better than what I use to say as a newbie loan officer…”Because it’s their money and we have […]


Why was my loan application denied?!

by Mortgage Nerd on May 7, 2011 · 1 comment

“But my loan officer said that I was approved!” is heard all too often in the mortgage world these days. In this article we will explore a couple reasons why a borrower can be approved immediately after the initial loan application but eventually denied once the lender’s underwriter gets a hold of the file. Most […]

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Underwriting for Beginners

by Mortgage Nerd on April 26, 2011 · 4 comments

When I first started out as a loan officer my manager taught me about an acronym to help me understand the basic principles of mortgage underwriting. And I think that it could be helpful for somebody that is looking to get a mortgage. The acronym is PACIT and it stands for: Property: This is the […]


Unless you have been living under a rock for the last 5 years you have probably heard from a family member, friend, or coworker about how difficult it can be to get a mortgage. It’s true that lenders have become more strict regarding the credit worthiness of those applying for a mortgage but the loan process does not have to […]