What Challenges Do Mortgage Underwriters Face with Entrepreneurial Applicants?
Mortgage underwriters encounter several challenges when dealing with entrepreneurial applicants: 1. Inconsistent Income: Entrepreneurs often have fluctuating income, making it difficult to predict future earnings. 2. Complex Financial Structures: Multiple revenue streams and complex business structures can complicate the assessment process. 3. Lack of Traditional Employment Verification: Without a traditional employer, verifying income and employment history can be more challenging. 4. Higher Risk Perception: Entrepreneurs might be seen as higher risk due to the uncertainty associated with their business ventures.