The Underwriting Process

On the fun scale, the mortgage underwriting approval process often feels like an exceptionally long dental appointment. You’ve dutifully gathered the mountain of documentation required to obtain a mortgage… or so you thought.

Your documents will be reviewed for thoroughness, completeness, and accuracy, and almost always, something is missing.

And so it begins.

Getting Started

Mortgage underwriting is the process in which the lender uses to access risk and ensure a borrower meets all of their minimum requirements for a home loan.

Its not uncommon to be quizzed right off the bat about any large deposits in your checking or saving accounts or how your 401k is vested, ect. This can feel like a very tedious process, but it is standard so roll with it,  and hustle with your answers and any additional documentation. It’s absolutely needed for underwriting.

Next Step? Approved, Denied or Suspended

To qualify for an exemption on your property taxes, you must occupy the property as your primary residence. If you rent the property to someone else and live elsewhere, you will not qualify for the tax break.

If you have two properties, you can only claim an exemption for the one you spend the majority of your time occupying. If you split your time equally between homes, you'll need to check the minimum occupation requirements in your state to determine whether you still qualify for an exemption. You cannot claim a homeowners exemption for two homes in the same state.

If you own property in two states, you may be able to claim exemptions on both. However, taking the exemption in another state may require you to give up your resident status in the first, complicating matters significantly.

Requirements For an Exemption

Homeowners exemptions vary by location, so you'll need to research what's available in your state. There are several key points that you need to know about. These include:

• checkThe date that you must occupy the home by
• checkThe deadline for filing your exemption
• checkThe necessary paperwork  and documentation required for an exemption

How Does a Homeowners Exemption Work?

If you're eligible for a homeowners or homestead exemption, you will only be responsible for paying taxes on a portion of your home's assessed value, rather than its full value. The portion varies by state, but nearly all homeowners stand to save a significant amount of money by taking advantage of this opportunity.

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Factors that will impact the amount you can save with your homeowners exemption are:

• checkThe assessed value of the property 
• checkExemption limits in your county
• checkCounty Tax Rate

The county assessor is responsible for managing homeowners exemptions. When you purchase a new home, you will receive an application in the mail from the assessor's office for a homeowners exemption. If you wish to claim the exemption, you must mail this back to the assessor within the designated time frame. The assessor's office will then apply the exemption to your property tax bill automatically each year, reducing the total sum that you're required to pay.

Tax exemptions are a smart way to minimize the amount you owe to the government each year. Most homeowners exemptions require a single filing and stay active as long as you maintain the same primary residence. Contact your assessor's office and research the possible exemptions in your state to learn more about what you could be eligible for in your new home.