Underwriting approval, an essential step in the mortgage lending process, can get you one step closer to the closing table. During the mortgage underwriting process, the underwriter examines your finances to see if you can afford to pay your mortgage loan. They also verify the information you shared in your application. Click on the video below for an overview of the underwriting process.
During the underwriting process, we analyze your loan application closely to see if you can afford your home loan. We want to make sure your home loan best fits your financial situation. Everyone has the same goal: getting you into your new home.
During underwriting, the underwriter needs a still image of your finances, not something that’s changing. During the home loan application process, try not to do anything that would change what you said in your application or your credit score, like switching jobs, getting a new credit card, applying for a car or appliance loan, or making unusually large bank deposits or withdrawals.
An underwriter looks over and carefully checks the documents, income, and assets in your home loan application. Lenders must be thorough because they are required to follow specific laws and investor requirements related to underwriting.
Underwriting can take as little as two to three days or over a week to complete, depending on the information that the underwriter might need to complete the loan approval process.
An underwriter looks at the information included in the loan application, such as:
Once the underwriter has looked at all your information closely, some things might need clarification. At this point, Planet may ask you to send more information, like bank statements, pay stubs, or a gift letter if you’re using funds from a family member to make your down payment.
Don’t panic. It’s not unusual for the underwriter to ask for an explanation or additional documentation. Your Planet mortgage professional will be in touch to let you know exactly what you need to provide.
If that happens, you might find that you receive conditional approval for your home loan. Then, we’ll ask you for more information about things the underwriter needs to clarify and recheck everything to make sure your application is ready for the next step: Conditional Approval.
Conditional approval means your underwriter has verified your information, but some things need clarification. Here’s what you need to know about this step.
Read More
After you’ve been through the final review and handled any additional requests and you’re ready to go to closing. Here’s what happens next.
Read More
© 2024 Planet Home Lending LLC NMLS ID#17022