We had been informed that our loan is incorporated in the underwriting stage today, but I’m unsure how that relates to the entire approval process. Does that mean we’re on the finish line, so to speak? Is underwriting the last part of the mortgage approval process?”
Let’s get started with the short answer and expand outward from that point. No, underwriting is not really the final part of the 房貸. You still have to attend closing to sign a variety of paperwork, and then the loan needs to be funded.
The underwriting process itself might be smooth or “bumpy,” based on your financial predicament. The underwriter might request more information, for example banking documents or letters of explanation (LOE).
So you’re close to the last step – although not quite on the finish line.
Is Underwriting the very last Part in the Mortgage Process?
Let’s consider the overall mortgage process, and exactly how the underwriting step fits into it. Here’s a simplified explanation of your various stages:
Origination: This is when you initially make an application for the money, or get pre-approved from a lender. It’s also whenever you enter the real estate market and begin seeking a house.
Processing: Once you’ve found a residence and made a deal to buy it, the mortgage lender will order an appraisal to discover the value. They’ll also gather many different loan documents and prepare or “process” them for your underwriter’s review.
Underwriting: This is where the rubber meets the highway, as they say. Within this step, the mortgage underwriter will review all documents regarding the borrower and also the property being purchased, to ensure they meet all applicable guidelines. The underwriter may also identify certain “conditions” that need to be resolved just before final approval and funding. (Learn more about conditional approval.)
Closing: Once the underwriter says that you’re loan is “clear” for closing, it’s time to sign some paperwork! You’ll sign a number of loan documents, tax records and so forth, and then you’ll have the secrets of your new house. The actual funding often takes place a couple of days after closing, but this will vary.
As we discussed, underwriting is not the last stage from the mortgage approval process. It’s one of the more important steps, as the underwriter is actually the “judge and jury” who decides in case the loan can be funded. But it’s not the very last step.
Precisely what the Borrower Should Do at this time
Like a borrower, the very best reaction you can have at this point is to remain in close experience of your loan officer and quickly handle any issues that arise.
If you’re lucky, you’ll sail through the underwriting process with no hitch. However, if the underwriter does identify certain conditions that really must be resolved, work to resolve them as dexipky44 as is possible. This will aid keep the closing on track preventing 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 sooner you provide you with the requested information, the quicker the underwriter can “clear” the loan for closing. This is exactly what everyone wants, but sometimes it takes some cooperation to have there. So stay in touch with the loan officer, who seems to be probably your primary reason for contact. And handle any information or document requests as soon as possible.