房屋貸款 – View All Trusted Tips For 房貸 With This Useful Article.
May 15, 2017
We had been informed our loan is within the underwriting stage right now, but I’m unsure how that refers to the overall approval process. Does that mean we’re on the finish line, so to speak? Is underwriting the very last part in the mortgage approval process?”
Let’s begin with the short answer and expand outward from there. No, underwriting is just not the final part in the 房貸. You still have to go closing to sign a bunch of paperwork, and then the loan must be funded.
The underwriting process itself could be smooth or “bumpy,” dependant upon your financial situation. The underwriter might request additional information, for example banking documents or letters of explanation (LOE).
So you’re near to the last step – however, not quite in the finish line.
Is Underwriting the final Step in the Mortgage Process?
Let’s look at the overall mortgage process, and how the underwriting step fits into it. Here’s a simplified explanation from the various stages:
Origination: This is where you first make an application for the financing, or get pre-approved with a lender. It’s also if you enter the real estate market and commence looking for a house.
Processing: Once you’ve found a home and made a proposal to acquire it, the mortgage lender will order an appraisal to ascertain the value. They’ll also gather various loan documents and prepare or “process” them for your underwriter’s review.
Underwriting: This is where the rubber meets the road, so to speak. During this step, the mortgage underwriter will review all documents concerning the borrower and the property being purchased, to make certain they meet all applicable guidelines. The underwriter may additionally identify certain “conditions” that should be resolved ahead of final approval and funding. (Read more about conditional approval.)
Closing: If the underwriter states that you’re loan is “clear” for closing, it’s time for you to sign some paperwork! You’ll sign various loan documents, tax records and stuff like that, and after that you’ll get the keys to your house. The exact funding typically takes place a couple of days after closing, but this can vary.
As you can tell, underwriting will not be the past stage inside the mortgage approval process. It’s one of the more important steps, for the reason that underwriter is basically the “judge and jury” who decides in case the loan can be funded. But it’s not the last step.
What the Borrower Must Do at this time
As being a borrower, the very best action you can take at this point is to stay in close connection with the loan officer and quickly handle any problems that arise.
If you’re lucky, you’ll sail through the underwriting process without having a 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 course and prevent delays.
For example, 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 quicker the underwriter can “clear” the borrowed funds for closing. This is what everyone wants, but it sometimes takes some cooperation to get there. So stay in touch with the loan officer, that is probably your main point of contact. And handle any information or document requests at the earliest opportunity.