Question by Daniel G: Do personal loan underwriters spend a lot of time verifying income or do they rely on credit score?
Do personal loan underwriters spend as much time as mortgage loan undertwriters verifying income? I know mortgage loan underwriters spend days checking a loan and have tools to check docs. Do personal loan underwriters follow the same guidelines?
Best answer:
Answer by kelly
yes they do they need both statements and information that support what you have written down to make sure that you are not a risk worth taking.
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I am a loan officer so I think I can answer this.. Yes. If you are going full doc (w-2) we ask for those. If your scores are really great.. in the 7’s for example.. a bank may only ask for 1 pay stub up to the last 30 days. If you are going stated (1099) they focus more on your credit report and bank statements. Banks are bound by Fannie Mae guidelines most of the time so there really isn’t anyway to go around the income thing. If you are concerned about qualifying for a home.. the only thing would be making sure you can afford the home based on your income. That will be the worst if you have good credit.
As an underwriter, our policy is to get proof of income (last paystub or 2) from anyone whose score is below 680. 680 and up we will take your word for it because obviously you have enough income to support your bills.
Every institution has it’s own policies and guidelines regarding this.