Final answer:
A GUS refer for a loan application indicates that further manual evaluation is needed. It is neither an approval nor a denial. The manual review will assess the applicant's financial situation and ability to repay the loan, which may include the need for a cosigner or collateral.
Step-by-step explanation:
When you receive a GUS (Guaranteed Underwriting System) refer, it typically means c) Further evaluation is required for your loan application. This system is used primarily for USDA loans and helps streamline the mortgage lending process. However, getting a refer does not equate to approval or denial; it simply indicates that the loan application does not meet the automated underwriting system's criteria for an automatic approval and must be reviewed manually. This manual review will include an in-depth look at the applicant's income sources, credit history, and the possibility of needing additional support such as a cosigner or offering collateral.
The use of a cosigner on a loan is when another individual or firm legally pledges to repay some or all of the money if the original borrower fails to do so. Collateral, on the other hand, could be property or equipment that the bank can seize and sell off to recover the loan amount if the borrower defaults on the repayments. Ultimately, a GUS refer highlights the need for a more thorough assessment of the applicant's financial situation and ability to repay the loan.