We had been informed that the loan is in the underwriting stage right now, but I’m uncertain how that pertains to the complete approval process. Does that mean we’re with the finish line, so to speak? Is underwriting the final step in the mortgage approval process?”
Let’s get started with the short answer and expand outward after that. No, underwriting is not really the ultimate part of the 房貸. You still need to visit closing to sign a bunch of paperwork, and therefore the loan should be funded.
The underwriting process itself might be smooth or “bumpy,” based on your financial situation. The underwriter might request further information, for example banking documents or letters of explanation (LOE).
So you’re close to the last step – but not quite in the finish line.
Is Underwriting the final Element of the Mortgage Process?
Let’s look at the overall mortgage process, and 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 financing, or get pre-approved by a lender. It’s also once you enter real estate market and initiate looking for a house.
Processing: Once you’ve found a house and made a deal to purchase it, the mortgage company will order an appraisal to ascertain the value. They’ll also gather many different loan documents and prepare or “process” them to the underwriter’s review.
Underwriting: This is where the rubber meets the highway, so to speak. During this step, the mortgage underwriter will review all documents relating to the borrower and the property being purchased, to make sure they meet all applicable guidelines. The underwriter might also identify certain “conditions” that ought to be resolved ahead of final approval and funding. (Read more about conditional approval.)
Closing: As soon as the underwriter states that you’re loan is “clear” for closing, it’s time to sign some paperwork! You’ll sign a variety of loan documents, tax records and so on, then you’ll obtain the secrets to your brand new house. The actual funding normally takes place a couple of days after closing, but this can vary.
As we discussed, underwriting is just not the very last stage from the mortgage approval process. It’s probably the most important steps, since the underwriter is essentially the “judge and jury” who decides when the loan might be funded. But it’s not the very last step.
Just what the Borrower Should Do at This Stage
As a borrower, the very best reaction you can have during this period is to stay in close connection with the loan officer and quickly handle any concerns that arise.
If you’re lucky, you’ll sail from the underwriting process without having a hitch. But if the underwriter does identify certain conditions that must be resolved, work to resolve them as dexipky44 as you possibly can. This will help retain the closing on course 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 the requested information, the earlier the underwriter can “clear” the borrowed funds for closing. This is exactly what everyone wants, but sometimes it takes some cooperation to get there. So stay in touch with the loan officer, that is probably your primary reason for contact. And handle any information or document requests at the earliest opportunity.