The underwriting process refers to the process by which tour lender verifies your income, debts, assets and property details to issue final approval for your loan application. Underwriting happens behind the scenes, but that doesn’t mean you won’t be involve. Your lender might ask for additional documents and answers. Such as where bank deposits came from, or ask you to provide proof of additional asset.
Role of Underwriter
Underwriter is basically like a investigator who took a look of your finances and assesses. So that to check whether you are eligible for loan or not. He or she will work with mortgage lender to get you loan. Also works with you to complete your all paper works carefully. If the underwriter dos not approves the loan then you will not get loan. He is the decision maker.
The time period depends on your financial situation. So it varies case by case. However, the fast the underwriter gets all the documentation the faster and smoother will be process. So it is necessary to give all the require documents on time.
The Mortgage Underwriting Process
During the underwriting process, your underwriter looks at four areas that can give them a more complete picture of you:
Your underwriter needs to know that you have enough income to cover your mortgage payments every month. To prove this, you need to provide three types of documents to verify your income: W-2s from the last 2 years, your two most recent bank statements and your two most recent pay stubs.
An appraiser will inspect the property and walk through the home to take pictures and measurements in order to evaluate the condition and features of the home. The appraiser compares similar properties by looking for homes that are similar in location, size and features. These “comps” need to have sold within the past 6 months and be within a mile of the property, unless you live in a rural area.
Underwriter checks your credit score, that how responsible you are for in paying debt back. Credit score is basically a three digit number to check whether you are valid for loan or not. The minimum score you require is 620 to be eligible for loan.
Your assets can help you get a mortgage approval because they can be sold for cash if you default on your payments. An underwriter might view your checking and savings accounts, real estate, stocks and personal property.