We were informed that our loan is in the underwriting stage right now, but I’m not sure how that concerns the complete approval process. Does that mean we’re at the finish line, as it were? Is underwriting the past part of the mortgage approval process?”
Let’s begin with the short answer and expand outward following that. No, underwriting is not the final part of the 房貸. You still have to go to closing to sign a bunch of paperwork, and so the loan should be funded.
The underwriting process itself could be smooth or “bumpy,” based on your financial predicament. The underwriter might request additional information, like banking documents or letters of explanation (LOE).
So you’re close to the last step – although not quite at the finish line.
Is Underwriting the Last Element of the Mortgage Process?
Let’s consider the overall mortgage process, and just how the underwriting step suits it. Here’s a simplified explanation from the various stages:
Origination: This is the time you initially apply for the borrowed funds, or get pre-approved from a lender. It’s also when you enter the real estate market and start seeking a house.
Processing: Once you’ve found a home and made an offer to buy it, the mortgage lender will order an appraisal to discover the value. They’ll also gather a number of loan documents and prepare or “process” them to the underwriter’s review.
Underwriting: Here is where the rubber meets the highway, so to speak. Throughout this step, the mortgage underwriter will review all documents regarding the borrower and also the property being purchased, to make sure they meet all applicable guidelines. The underwriter may also identify certain “conditions” that must be resolved just before final approval and funding. (Learn more about conditional approval.)
Closing: When the underwriter states that you’re loan is “clear” for closing, it’s time for you to sign some paperwork! You’ll sign many different loan documents, tax records and so on, then you’ll have the secrets to your brand-new house. The particular funding often takes place a couple of days after closing, but this may vary.
As you can see, underwriting is not really the very last stage within the mortgage approval process. It’s probably the most important steps, because the underwriter is basically the “judge and jury” who decides in case the loan may be funded. But it’s not the last step.
What the Borrower Must Do at This Stage
As being a borrower, the ideal action you can take at this time is to stay in close contact with your loan officer and quickly handle any issues that arise.
If you’re lucky, you’ll sail from the underwriting process without having a hitch. However if the underwriter does identify certain conditions that must definitely be resolved, work to resolve them as dexipky44 as possible. This will help keep your closing on the right track preventing delays.
For instance, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The earlier you supply the requested information, the quicker the underwriter can “clear” the money for closing. This is exactly what everyone wants, but often it takes some cooperation to get there. So stay in contact with the loan officer, who may be probably your main reason for contact. And handle any information or document requests at the earliest opportunity.