We had been informed that the loan is in the underwriting stage at the moment, but I’m unclear how that refers to the entire approval process. Does that mean we’re in the finish line, as it were? Is underwriting the past part in the mortgage approval process?”
Let’s get started with the short answer and expand outward from there. No, underwriting is just not the very last part of the 房貸. You still have to attend closing to sign a variety of paperwork, and therefore the loan has to be funded.
The underwriting process itself might be smooth or “bumpy,” according to your financial predicament. The underwriter might request more information, including banking documents or letters of explanation (LOE).
So you’re close to the last step – although not quite with the finish line.
Is Underwriting the final Part in the Mortgage Process?
Let’s glance at the overall mortgage process, and the way the underwriting step fits into it. Here’s a simplified explanation from the various stages:
Origination: This is where you first submit an application for the loan, or get pre-approved with a lender. It’s also once you enter the real estate market and initiate seeking a house.
Processing: Once you’ve found a home and made a proposal to buy it, the mortgage lender will order an appraisal to look for the value. They’ll also gather a number of loan documents and prepare or “process” them for the underwriter’s review.
Underwriting: This is where the rubber meets the street, as they say. Within this step, the mortgage underwriter will review all documents concerning the borrower and the property being purchased, to ensure they meet all applicable guidelines. The underwriter might also identify certain “conditions” that need to be resolved just before final approval and funding. (Learn more about conditional approval.)
Closing: If the underwriter says that you’re loan is “clear” for closing, it’s time for you to sign some paperwork! You’ll sign a variety of loan documents, tax records and so on, and then you’ll receive the tips for your brand new house. The specific funding normally takes place a day or two after closing, but this can vary.
As you have seen, underwriting is not the final stage inside the mortgage approval process. It’s one of the more important steps, as the underwriter is simply the “judge and jury” who decides if the loan might be funded. But it’s not the last step.
Precisely what the Borrower Must Do at this point
As a borrower, the most effective reaction you can have at this point is to remain in close contact with your loan officer and quickly handle any conditions that arise.
If you’re lucky, you’ll sail through the underwriting process without having 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 helps keep the closing on track and stop 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 give you the requested information, the earlier the underwriter can “clear” the loan for closing. This is exactly what we all want, but sometimes it takes some cooperation to obtain there. So stay in contact with your loan officer, who seems to be probably your primary point of contact. And handle any information or document requests as quickly as possible.