We had been informed our loan is within the underwriting stage at this time, but I’m unsure how that refers to the general approval process. Does that mean we’re at the finish line, as we say? Is underwriting the past element of the mortgage approval process?”
Let’s start out with the short answer and expand outward from that point. No, underwriting is just not the final part of the 房貸. You still have to go closing to sign a variety of paperwork, and then the loan should be funded.
The underwriting process itself might be smooth or “bumpy,” dependant upon your financial circumstances. The underwriter might request further information, such as banking documents or letters of explanation (LOE).
So you’re near the last step – however, not quite on the finish line.
Is Underwriting the Last Element of the Mortgage Process?
Let’s consider the overall mortgage process, and the way the underwriting step suits it. Here’s a simplified explanation of your various stages:
Origination: This is the time you first of all make an application for the money, or get pre-approved by way of a lender. It’s also when you enter the real estate market and commence 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 ascertain the value. They’ll also gather a variety of loan documents and prepare or “process” them for that underwriter’s review.
Underwriting: This is when the rubber meets the road, as it were. In this step, the mortgage underwriter will review all documents regarding the borrower and also the property being purchased, to make sure they meet all applicable guidelines. The underwriter might also identify certain “conditions” that need to be resolved before final approval and funding. (Read more about conditional approval.)
Closing: If 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 the like, then you’ll have the secrets to your brand-new house. The exact funding typically takes place a day or two after closing, but this could vary.
As you have seen, underwriting is just not the final stage in the mortgage approval process. It’s one of the most important steps, as the underwriter is essentially the “judge and jury” who decides in the event the loan may be funded. But it’s not the very last step.
What the Borrower Must Do at this time
As being a borrower, the very best reaction you can have at this stage is to stay in close contact with your loan officer and quickly handle any conditions that arise.
If you’re lucky, you’ll sail from the underwriting process with no hitch. However, if the underwriter does identify certain conditions that must definitely be resolved, work to resolve them as dexipky44 as you possibly can. This will help retain the closing on track preventing delays.
For instance, 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 earlier the underwriter can “clear” the loan for closing. This is just what everyone wants, but often it takes some cooperation to get there. So stay in touch with the loan officer, that is probably your main reason for contact. And handle any information or document requests without delay.