The Underwriting Process

Applying and obtaining a mortgage is an intricate process.  There is a lot going on behind the scenes that you might not be aware of.

Take One:  The completion of the loan application.

Take Two: Application sent to loan processing.

Take Three: Application goes to the underwriting department.

Sounds as easy as one, two, three, but there is so much more.  Underwriting in itself refers to the process that leads to final approval or denial of your loan.  It’s a process that involves lenders to verify your assets in order to be considered for approval.

Suggested Reading: The Arizona Home Plus Program

The loan program you apply for determines which method the underwriter uses; the government agency or secondary market for your mortgage program or the lender’s guidelines.

While you are waiting for the underwriter, it’s important to have a line of open communication is important here, so make sure that you are available and responsive during this time; plan on checking your email multiple times a day, every single day and making sure you are available to accept phone calls.

Although the documents required are based on the loan type, typically the documents being verified are tax returns, W-2’s, bank statements and pay stubs. Don’t be surprised if the underwriter asks you to explain recent deposits or transactions. This will make their life easier and speed up the process of getting you into your home as quickly as possible.

Upon review of all of the required documents and necessary information, the underwriter will make a decision on the loan application.  At this time, several things can happen.

  • The loan can be approved outright
  • The lender may determine that conditions must be fulfilled before the application can be approved.
  • You might be required to provide additional verification of income or conclude the sale of your current property.
  • The loan might also be denied if the borrowers do not meet underwriting requirements.

The underwriting process can take up to three days.  If for any reason you are denied for a mortgage loan, the lender will send a detailed explanation of the decision.

The key to a successful loan application is the prepare ahead of time.  Just like an actor reads his lines over and over, applying for a mortgage requires a lot of preparation.

If you have any questions on the underwriting process, please call us today.

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225

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