What to expect from
Processing & Underwriting
Loan processing and underwriting are important steps in the loan approval process. Here’s what you can expect during these stages:
A few items obtained during the underwriting stage:
- Appraisal
- Updated Title
- Escrow Amounts
- Loan Payoffs
- Additional Property Liens
- Taxes
- HOA Paperwork
- Additional Loan Paperwork
Mortgage Loan Process
Step:1 Documentation
Step:2 Appraisal
Step:3 Underwriting
Step:4 Conditional Approval
Step:5 Clear To Close
Step:6 Closing
Please feel free to contact us at any time if you have any questions about your loan status or next steps in the process.
Things to know
- Loan processing: The loan processing stage involves gathering and verifying all the information needed to approve the loan. This includes reviewing the borrower’s credit report, income and employment information, bank statements, tax returns, and other financial documents. The loan processor will also order a property appraisal and title report, and may ask the borrower for additional information or documentation.
- Underwriting: Once the loan processing stage is complete, the loan moves to the underwriting stage. This is where the underwriter reviews all the information collected during loan processing to determine whether the borrower meets the lender’s eligibility requirements and whether the loan can be approved. The underwriter will evaluate the borrower’s creditworthiness, debt-to-income ratio, and other factors that could impact the borrower’s ability to repay the loan.
- Timeline: The loan processing and underwriting stages typically take 1-2 to complete. The exact timeline will depend on the complexity of the loan and the volume of loan applications being processed by the lender.
- Approval or denial: At the end of the underwriting stage, the underwriter will either approve or deny the loan. If the loan is approved, the borrower will receive a loan commitment letter outlining the terms of the loan. If the loan is denied, the borrower will receive a letter explaining the reason for the denial.
Overall, the loan processing and underwriting stages are critical to the loan approval process. By understanding what to expect during these stages, borrowers can prepare for a smoother and more efficient loan application process.
