What is the Underwriting Process when Buying a Home?

Mortgage Underwriting

This is article will prepare you to what and expect when purchasing a home and starting the mortgage process and the underwriting of your loan.

When you work with a mortgage lender or broker, your loan officer will collect various information on anyone applying for the mortgage loans. Specifically, they will ask questions on your income and employment, your savings and your credit history. Once they have obtained all this information verbally, they will send you an application package (normally electronically) and have you sign all the disclosures needed for the loan. They will also ask you to send you a list of documents to send back to them to verify your verbal representations. These documents typically include 2 years of W2s, 1 month of paystubs, 1-2 months of bank statements and a copy of your driver’s license. There may be additional information based on your exact circumstances.

Once the package is complete it is submitted to an underwriter. This person reviews all the information ensuring you are meeting all the requirements of the mortgage loan program you are seeking and issuing a conditional approval. The initial underwriting review typically takes 24 – 48 hours. The processor on your file will work with you to request any additional items the underwriter may request along with waiting for appraisal report to be returned for final review of the property if one is needed.

The overall underwriting process from submitting your initial loan documentation to the final approval is typically 2 – 3 weeks. From that point you are waiting for the loan to be scheduled to close.

As always, work with a reputable mortgage lender such as Hall Financial as their Loan Officers would be happy to answer any of your questions.