We were informed our loan is within the underwriting stage right now, but I’m unsure how that concerns the entire approval process. Does that mean we’re at the finish line, as it were? Is underwriting the last part of the mortgage approval process?”
Let’s start out with the short answer and expand outward following that. No, underwriting is not the very last part of the 房貸. You still have to go to closing to sign a lot of paperwork, and so the loan has to be funded.
The underwriting process itself could be smooth or “bumpy,” depending on your finances. The underwriter might request additional information, such as banking documents or letters of explanation (LOE).
So you’re near the last step – yet not quite with the finish line.
Is Underwriting the Last Part of the Mortgage Process?
Let’s check out the overall mortgage process, and how the underwriting step suits it. Here’s a simplified explanation of your various stages:
Origination: This is the time you initially make an application for the borrowed funds, or get pre-approved from a lender. It’s also once you enter the real estate market and initiate trying to find a house.
Processing: Once you’ve found a home and made a proposal to buy it, the mortgage lender will order an appraisal to determine the value. They’ll also gather many different loan documents and prepare or “process” them to the underwriter’s review.
Underwriting: This is when the rubber meets the path, as we say. During this step, the mortgage underwriter will review all documents relating to the borrower along with the property being purchased, to make certain they meet all applicable guidelines. The underwriter might also identify certain “conditions” that must be resolved ahead of final approval and funding. (Find out more about conditional approval.)
Closing: As soon as 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 forth, then you’ll get the tips for your brand new house. The exact funding typically takes place a day or two after closing, but this could vary.
As you can tell, underwriting is not the final stage inside the mortgage approval process. It’s probably the most important steps, because the underwriter is essentially the “judge and jury” who decides in the event the loan can be funded. But it’s not the last step.
Just what the Borrower Must Do at this time
Being a borrower, the very best thing you can do at this time is in which to stay close contact with your loan officer and quickly handle any conditions that arise.
If you’re lucky, you’ll sail from the underwriting process with out a hitch. However, if the underwriter does identify certain conditions that need to be resolved, work to resolve them as dexipky44 as possible. This will assist keep your closing on the right track and prevent delays.
By way of example, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The quicker you supply the requested information, the earlier the underwriter can “clear” the loan for closing. This is just what everyone wants, but often it takes some cooperation to have there. So stay in touch with your loan officer, who seems to be probably your main reason for contact. And handle any information or document requests as quickly as possible.