What happens after underwriting?
There are a lot of specifics to the mortgage process, which can seem overwhelming if it’s your first time going through it. The good news is that your lender will guide you along every step of the way to ensure things run as smoothly as possible.
Part of that process is preparing to submit your loan to underwriting, where it will undergo a thorough review to ensure that you can both afford the loan you’re applying for and that the amount you’re requesting aligns with the home’s market value. This is a big part of the process and you’ll have a much clearer idea of where you stand after underwriting.
Your underwriting decision might come back as any of the following:
- Approved – Congratulations, you’re “clear to close!” An approval means that all the proper documentation was submitted and satisfied any requirements to grant you the mortgage you were applying for.
- Conditional approval – There are still certain conditions that must be met before you receive final approval. This is most often some type of documentation to support information you’ve already provided, such as proof of employment or a gift letter if you received money to go toward your down payment.
- Pending/suspension – This is another case in which you’ll need to provide additional details, but it means there’s a question about a more substantial piece of information.
- Denied – If your loan is denied, be sure to ask for the specific reason why so that you can correct the issue moving forward. Denial could be related to your credit history or a debt-to-income ratio that’s considered too risky. Ask your lender about other loan options; depending on the reason for denial there may be other opportunities to move forward.
Underwriting can take anywhere from several days to a few weeks. During this process, it’s important to not make any big changes such as large purchases or leaving your job. Remember that your lender will check your credit and employment status one final time right before your closing date – so be careful not to jeopardize your loan after going through the underwriting process.
Give Acadia Lending Group a call to learn more or start the process of home ownership.