By studying and understanding the anatomy of a mortgage loan you can be a more intelligent borrower who can understand the nuances of programs and rates. You will not be embarrassed to ask how the loan officer arrived at the pricing and you will not be susceptible to double talk and nonsense. Knowledgeable borrowers are easier to deal with and make the entire process a pleasure for both the borrower and the lender.

Before I close I must tell you that AUS (Automated Underwriting Systems) have changed a lot of the standard rules. There are a myriad of these systems, first designed by Fannie Mae and Freddie Mac, and they were originally designed for conforming loans. On a full doc loan with a low loan to value and a high credit score the AUS system can be as little as one bank statement or perhaps a verbal verification of employment.

A number of major banks have designed their own automated systems that will work on their products. Still other banks will give special simplified rules to those who have high credit scores, generally over 700. It all boils down to the fact that lenders want to make loans, borrower want to accept them and everyone is working to make the process easier and fairer for all concerned.