We had been informed that our loan is in the underwriting stage at the moment, but I’m uncertain how that pertains to the entire approval process. Does that mean we’re with the finish line, as it were? Is underwriting the past part in the mortgage approval process?”
Let’s start out with the short answer and expand outward from that point. No, underwriting will not be the final part in the 房貸. You still have to visit closing to sign a variety of paperwork, and so the loan needs to be funded.
The underwriting process itself can be smooth or “bumpy,” according to your financial circumstances. The underwriter might request much more information, such as banking documents or letters of explanation (LOE).
So you’re next to the last step – but not quite in the finish line.
Is Underwriting the past Step in the Mortgage Process?
Let’s check out the overall mortgage process, and the way the underwriting step fits into it. Here’s a simplified explanation in the various stages:
Origination: This is when you first of all apply for the loan, or get pre-approved by a lender. It’s also when you enter the real estate market and start searching for a house.
Processing: Once you’ve found a house and made an offer to buy it, the mortgage company will order an appraisal to look for the value. They’ll also gather a number of loan documents and prepare or “process” them for your underwriter’s review.
Underwriting: This is when the rubber meets the highway, as we say. Within this step, the mortgage underwriter will review all documents concerning the borrower and the property being purchased, to guarantee they meet all applicable guidelines. The underwriter could also identify certain “conditions” that should be resolved just before final approval and funding. (Read more about conditional approval.)
Closing: Once the underwriter says that you’re loan is “clear” for closing, it’s time for you to sign some paperwork! You’ll sign a variety of loan documents, tax records and so forth, after which you’ll get the secrets to your house. The actual funding often takes place a couple of days after closing, but this could vary.
As you can tell, underwriting is not the final stage in the mortgage approval process. It’s one of the most important steps, for the reason that underwriter is essentially the “judge and jury” who decides in the event the loan may be funded. But it’s not the ultimate step.
Exactly what the Borrower Need To Do at this point
As a borrower, the very best thing you can do during this period is to stay in close connection with your loan officer and quickly handle any problems that arise.
If you’re lucky, you’ll sail with the underwriting process without a hitch. But if the underwriter does identify certain conditions that really must be resolved, try to resolve them as dexipky44 as possible. This will aid retain the closing on target and stop delays.
For instance, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The quicker you provide you with the requested information, the earlier the underwriter can “clear” the loan for closing. And this is what everyone wants, but it sometimes takes some cooperation to obtain there. So stay in contact with your loan officer, who is probably your primary point of contact. And handle any information or document requests at the earliest opportunity.