BOULDER – When you’re applying for a mortgage loan, understanding what underwriters look for in your application can help set you up for success. In addition to your debt-to-income ratio and credit report, there are several other considerations underwriters may take into account when reviewing your loan application:

1. How stable is your income? If you’ve been at your current job for more than a few years, that’s a positive indicator for underwriters. If your employment and income change a lot, that’s not a positive indicator.

2. What’s the value
and type of the collateral? Home appraisals assess a home’s current value to protect the lender from lending more money than a property is worth. Underwriters also consider the type of property – whether the home is owner-occupied or an investment property.

3. Do you have a cushion of money set aside in case you lose your job? Lenders like to see you have money set aside in savings accounts, retirement accounts or other investments. Having money saved shows that if a loss of income or unexpected expenses occur, you’ll still be able to pay your mortgage.

For more on this subject, visit the Elevations Blog at elevationscu.com. Underwriter Blake Schaefer is a mortgage loan originator at Elevations Credit Union in Boulder. If you have questions regarding mortgages, please call 720.562.4614 or e-mail blake.schaefer@elevationscu.com.