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- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
About Mortgage Underwriting Process
The mortgage process could be intriguing, especially for first-time homebuyers. This process may include many people that you may or may not have any communication.
Though your loan officer and the loan processor would be the people that you would be majorly communicating with, you might hear or have heard about the underwriter.
In this post, we will understand what is the mortgage underwriting process and what the underwriter does.
What is a mortgage underwriter?
A mortgage underwriter is a person that is behind the scenes to make sure that you meet all of the guidelines required to obtain the mortgage loan that you are applying for.
And for the most part, the mortgage underwriter is a person who is just double-checking your loan officer and your mortgage processor, ensuring that they have covered everything.
The mortgage underwriter works very closely with your loan officer and the loan processor to see that you get through to closing.
They have all the rules and guidelines handy for all kinds of mortgage loan programs like FHA, VA, Conventional, or HUD.
These underwriters sign their name to these approvals and they are licensed so their job is on the line.
They need to do a good job and make sure that they do not miss anything.
They may seem to be difficult, however, they are just trying to make sure that you are approved based on those required guidelines.
What is the mortgage underwriting process?
The file goes thru the underwriting process once your loan officer and the loan processor runs your loan through either Fannie Mae’s or Freddie Mac’s automated underwriting system and says that your loan is approved.
When your loan officer says that your loan is submitted to the underwriter it means they have submitted all the documents like your income, employment history, credit report, assets information, and appraisals to the underwriter after it has been verified by the loan processor.
The underwriter will go through all the documents received, verify those documents according to the loan program guidelines, and ensure that all the required guidelines are met.
Every loan program has different guidelines to follow. The underwriter ensures that the documents are received and verified according to the loan program you are applying for.
This could include verification of employment, some explanation on your credit, or some clarification on your asset statement.
Based on the findings, the mortgage underwriter will give the status of your loan which could be either “denied” or “approved with conditions.”
If your loan is denied due to any reason, your officer will get in touch with you and inform you of the reason why your loan was not been approved.
If your loan is approved with conditions, this means there is some clarification that the mortgage
underwriter needs, to get your loan to the final approval stage. Your loan officer and loan processor would work with you to get the clarification done.
Once all the conditions are fulfilled by your loan processor and loan officer, the underwriter will verify and make sure the conditions are met according to the loan program guidelines.
If everything is good, your loan will get the final approval where your loan officer will get the indication from the mortgage underwriter that the loan is ‘Clear To Close’.
Conclusion
The mortgage underwriting process may take anywhere between 5 to 7 days based on the kind of conditions received and the type of solutions needed to get it cleared.
The good thing is that your loan officer and the loan processor will make sure that they get your loan through the mortgage underwriting process and get you to the closing table as soon as possible.
