You are pre-approved, found a home you love, and made an offer. Now your loan is in underwriting. You might be wondering what that means! Here is a brief overview of the process.
What is mortgage underwriting?
Mortgage underwriting is the process a lender uses to determine if the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable. Mortgage underwriters review your documentation and other factors with a fine-toothed comb to determine credit, capacity, and collateral worthiness.
What does an underwriter look at?
The documents will vary based on the type of loan you are applying for. The underwriter often requires documentation in addition to what has been collected by your loan officer.
Can you speed up underwriting?
To help the underwriting process move as quickly as possible, make sure all your paperwork is complete. Also, understand that when additional documentation is required by the underwriter, a little patience is necessary as the underwriter reviews it.
Although the process may be a little trying, just know you are close to the finish line.
