We had been informed that the loan is in the underwriting stage at the moment, but I’m not sure how that relates to the overall approval process. Does that mean we’re on the finish line, as they say? Is underwriting the last element of the mortgage approval process?”
Let’s begin with the short answer and expand outward following that. No, underwriting is not the final element of the 房貸. You still need to go closing to sign a lot of paperwork, and then the loan needs to be funded.
The underwriting process itself can be smooth or “bumpy,” based on your financial situation. The underwriter might request much more information, including banking documents or letters of explanation (LOE).
So you’re near to the last step – but not quite on the finish line.
Is Underwriting the past Step in the Mortgage Process?
Let’s glance at the overall mortgage process, and exactly how the underwriting step fits into it. Here’s a simplified explanation from the various stages:
Origination: This is where you initially submit an application for the financing, or get pre-approved by a lender. It’s also once you enter real estate market and begin searching for a house.
Processing: Once you’ve found a home and made a deal to buy it, the mortgage company will order an appraisal to ascertain the value. They’ll also gather various loan documents and prepare or “process” them to the underwriter’s review.
Underwriting: This is why the rubber meets the path, as it were. Within this step, the mortgage underwriter will review all documents regarding the borrower along with the property being purchased, to ensure they meet all applicable guidelines. The underwriter might also identify certain “conditions” that ought to be resolved prior to final approval and funding. (Find out more about conditional approval.)
Closing: When the underwriter states that you’re loan is “clear” for closing, it’s time to sign some paperwork! You’ll sign many different loan documents, tax records and so on, and then you’ll get the secrets to your brand-new house. The particular funding normally takes place a couple of days after closing, but this can vary.
As we discussed, underwriting will not be the final stage inside the mortgage approval process. It’s just about the most important steps, because the underwriter is actually the “judge and jury” who decides in the event the loan can be funded. But it’s not the very last step.
Exactly what the Borrower Need To Do at this point
As being a borrower, the best thing you can do at this point is to remain in close connection with your loan officer and quickly handle any issues that arise.
If you’re lucky, you’ll sail throughout the underwriting process with out a hitch. But if the underwriter does identify certain conditions that need to be resolved, try to resolve them as dexipky44 as you can. This will assist keep your closing on course which will help prevent delays.
For example, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The quicker you provide the requested information, the quicker the underwriter can “clear” the borrowed funds for closing. This is what we all want, but sometimes it takes some cooperation to get there. So stay in touch with the loan officer, who is probably your main point of contact. And handle any information or document requests as soon as possible.