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I went to a real estate brokers office to apply for a mortgage loan about 10 days ago and still no answer, he told me not to worry about that he had an “in house mortgage” and I was already approved but he was going to present it to a couple of banks anyways. My question is, do these broker offices have their own underwriters and if so why would the bank take so long to give us an answer? Or did he just say I was approved without even checking and the bank has their own underwriters who will verify all information? Also, how do the underwriters feel about 1099’s? I get paid cash but my employer gives me a 1099 every quarter.

2 Thoughts on Underwriters/ Mortgage brokers?
  1. Reply
    August 5, 2012 at 11:15 am

    You should simply go into your local bank and apply. You will get better service and be able to work with a mortgage rep that will handle your deal from start to finish. 1099s fine, but they will need your tax returns also. If the guy has not even seen your returns, they he is just assuming you are going to be approved.

  2. Reply
    August 5, 2012 at 11:39 am

    If the company is a broker, then they do NOT have their own legitimate underwriter. They may have a supervisor that reviews the loan officers work before submitting your file to the actual company making the loan. However, that supervisor doesn’t actually have any authority to actually approve your loan. If the company is a mortgage banker, then they operate as a lender by actually approving and funding your loan BEFORE they actually broker it out to the final company where you will eventually make your payments. If they stated they have an inhouse program, it is possible that they operate as both a mortgage broker and mortgage banker. Either way, you will still make payments to another company when your closes.

    As for 1099 income, it is unacceptable as true income. If you receive 1099 income, then you must file as self employed and you are allowed to deduct your expenses incurred while performing the tasks associated with your job. Consequently, you will be required to provide the last two years federal income tax returns and a year to date profit and loss statement to analyse your costs against income to determine a net profit and what is considered to be your true income.

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