We were informed that our loan is incorporated in the underwriting stage right now, but I’m unclear how that concerns the overall approval process. Does that mean we’re with the finish line, as they say? Is underwriting the very last part in the mortgage approval process?”
Let’s start with the short answer and expand outward after that. No, underwriting is not the very last part of the 房貸. You still need to visit closing to sign a number of paperwork, and therefore the loan should be funded.
The underwriting process itself can be smooth or “bumpy,” depending on your financial predicament. The underwriter might request additional information, for example banking documents or letters of explanation (LOE).
So you’re near the last step – although not quite at the finish line.
Is Underwriting the very last Step in the Mortgage Process?
Let’s consider the overall mortgage process, and exactly how the underwriting step suits it. Here’s a simplified explanation from the various stages:
Origination: This is the time you first make an application for the borrowed funds, or get pre-approved from a lender. It’s also when you enter the real estate market and initiate trying to find a house.
Processing: Once you’ve found a house and made a proposal to acquire it, the mortgage lender will order an appraisal to look for the value. They’ll also gather many different loan documents and prepare or “process” them to the underwriter’s review.
Underwriting: This is why the rubber meets the path, as we say. In 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 could also identify certain “conditions” that must be resolved just before final approval and funding. (Discover more about conditional approval.)
Closing: When the underwriter says 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 stuff like that, then you’ll receive the tips for your brand new house. The exact funding often takes place a couple of days after closing, but this could vary.
As you can tell, underwriting is not really the final stage within the mortgage approval process. It’s probably the most important steps, because the underwriter is basically the “judge and jury” who decides if the loan might be funded. But it’s not the very last step.
Precisely what the Borrower Need To Do at this point
As a borrower, the most effective reaction you can have during this period is to stay in close exposure to your loan officer and quickly handle any concerns that arise.
If you’re lucky, you’ll sail through the underwriting process without a hitch. However, if the underwriter does identify certain conditions that must be resolved, try to resolve them as dexipky44 as possible. This will help keep your closing on target and stop delays.
As an example, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The earlier you provide you with the requested information, the sooner the underwriter can “clear” the money for closing. And this is what everyone wants, but sometimes it takes some cooperation to acquire there. So stay in touch with the loan officer, who may be probably your main reason for contact. And handle any information or document requests as soon as possible.