What underwriters actually look at

Underwriters care about your score, but they care more about the story behind it. They look at recent late payments, how many accounts you've opened in the last 12 months, your utilization, and any collections or charge-offs. A 720 score with three new credit cards last quarter looks worse than a 690 with five years of clean payments.

This is where DTI lives. Underwriters add up your minimum monthly debt payments plus the new mortgage payment, then divide by your gross monthly income. For self-employed borrowers, they pull two years of tax returns and average net income — and add back depreciation, depletion, and certain one-time expenses.

• W-2 income: averaged over two years if it varies
• Bonus/commission: usually needs a two-year history
• Self-employed: net income from Schedule C or K-1, with addbacks
• Rental income: 75% of lease amount counts (vacancy factor)

Underwriters source every dollar going to closing. Large deposits in the last 60 days get questioned. Gift funds need a signed letter and proof of transfer. They also confirm reserves — money left in the bank after closing — typically 1–6 months of payments depending on the program.

The appraisal protects the lender. If the home appraises below the purchase price, the loan is capped at the appraised value. Underwriters also review the appraiser's comparables, condition notes, and any safety issues (especially on FHA and VA loans).

Almost every approval comes with conditions — extra docs the underwriter wants before final sign-off. Common ones: updated paystubs, an explanation letter for a deposit, a homeowners insurance binder, or a tax transcript. Respond fast. The faster conditions clear, the faster you close.

• Don't change jobs, don't open new credit, don't move large sums between accounts
• Keep digital copies of every paystub, statement, and tax return
• Answer document requests within 24 hours
• Trust your broker — they've seen the patterns