Step 4 of the mortgage process is probably the step that causes the most angst for borrowers and realtors.
After the appraisal is complete and all necessary docs have been collected from steps 1 and 2, the file is sent to the Underwriter.
The purpose of the underwriting process is for the Underwrite to review the file with a fine tooth comb and determine the strength of the file.
The loan officer has skilfully put together a borrower's story including: who the borrower is, financial history, the purpose of the loan, current finacial situation and contribution to the home purchase, and any other pertinent info that will help the underwriter see the strength of the borrower to be able to qualify and repay the loan.
The Underwriter, who has a extensive understanding of regulations, rules and qualifications needed for each particular loan product, makes the final decision on whether a commitment or loan approval will be issued.
Underwriting processing times will vary from lender to lender. Prior to applying for a mortgage it's a good idea to inquire about average wait times for each step in the process.
In my experience, advising on wait times throughout the process helps to ease worry for my borrowers and realtors, and aids in transparency while helping to set expectations.
REMEMBER: The Mortgage Process will vary from lender to lender. Speak to your lender about the exact steps in their process.
Next up, Step 5, The Commitment Letter!
Please Note: This article is provided for illustrative purposes only. It is not an offer or commitment to lend money, and it is not an advertisement for a specific mortgage or a specific interest rate. Contact me to run the numbers for your situation.