For most homebuyers, securing financing through a mortgage loan is the best option to purchase a property. Getting an overall idea of the mortgage underwriting process can help you when working with a mortgage lender and can help you prepare for each step of the journey.
After you send in a mortgage loan application, it goes through the underwriting process. Your lender reviews key pieces of information to determine if you’re financially able to pay them back for the loan.
A mortgage underwriter reviews your credit score, credit history, employment information and assesses the mortgage loan amount to see if it’s worth the investment for the lending company.
There are 5 main steps to the mortgage underwriting process. Theses include:
Overall, an average of 7 to 14 percent of mortgage applications are denied yearly. Most lenders abide by Fannie Mae and Freddie Mac guidelines during the lending process. Government backed loans such as an FHA or VA loan adhere to regulations of the Federal Housing Administration.
Sometimes, lenders will implement their own regulations on top of the standard ones in response to economic factors or other conditions, which is called an overlay.
Getting approved or a loan gives homebuyers more freedom when making a property purchase. By reviewing the underwriting process, you can prepare needed documentation and get a better idea of the timeline for approval.
Selling or buying a house is exciting, nerve wracking, stressful and fun all rolled into one. We are aware of that and take our job very seriously with a passion to help throughout the entire process. That's why we offer the highest level in real estate expertise and professionalism.
Combine Polly's 20+ years in Real Estate and Dave's 40+ years in marketing and 10 years as Polly's Real estate partner, our clients get the best strategies when it comes time to sell their home. In the past 20 years, we have been trusted by over 1000 families to assist in their Real Estate needs...amounting to over $100 million in sales.
From marketing expertise to professional photography, to Staging assistance, to custom videos; to social media to e-commerce expertise, we have today's tools to get the job done. And if you are looking for that perfect home, we can help through the entire processes.
We'll help with getting you pre-qualified to searching the right property based on your desires and budget. And we'll assist right through the inspection to the closing details every step of the way.
We take special pride in being endorsed by Veterans United! Don't hesitate to contact us and allow us to help guide you through your real estate needs. Professional, ethical and dedicated is what our promise is to you!
