Once your full loan application has been submitted, the mortgage processing stage begins. For you, the buyer, this is mostly a waiting period.
We prepare your file for underwriting. At this time, all necessary credit reports are ordered, as well as your title search and tax transcripts.
The information on the application, such as bank deposits and payment histories, are verified. Once we put together a complete package with all verifications and documentation, the file is sent to the underwriter.
During this time, the underwriter will review your information in detail. It’s their job to “nitpick” the information you’ve provided looking for missing items and red flags.
They’ll primarily focus on the three Cs of mortgage underwriting:
- Capacity: Will your income and current debt load allow you to make the loan’s payments each month?
- Credit: Does your credit history show that you pay debts on time?
- Collateral: Is the value of the property you’re buying sufficient collateral for the loan? (In other words: Did the appraisal show the purchase price and home value are aligned?)
During the underwriting process, we may come back with questions. You should respond as quickly as possible to ensure a smooth underwriting process.
