The mortgage underwriting was the detailed process which will take few days. In some cases however, this is can take some weeks as well. Five until eight business days was reasonable and common. The timeline was vary because every borrower also different as well. hence, the biggest question that related with this process were how long does mortgage underwriting take? And what happen during this process. Therefore, we should know with basic definition of mortgage underwriting first.
Fro the borrower’s prespective, mortgage underwriting was one of the most important process from loan process. it has power to make or broke you loans. Hence, underwriting was the process where the mortgage lender assessing the eligibility from potential borrowers. Shortly, the lenders want to ensure that the borrowers had fulfilled their own guidelines, including of credit, debt, collateral and income as well. This underwriting also ensure that the borrower also meet with their secondary requirement and guidelines, such as: VA, FHA, Freddie Mac, etc.
Mortgage underwriting also happen after fulfill the applications loans and give the supporting documents. Usually, the borrowers will get a deal with mortgage broker or loan officer at first. After that first step, the loan file will move into underwriting process.
So, you way wonder what this underwriter actually does during this whole process. He or she will review all of your documents which related with loans, including the supporting documents which you had given, such as: bank statement, tax returns, pay stubs, and more. He or she will review your credit score, loan’s ratio, your income situation, employment and so on. He or she will ask additional documents or the other explanation letter from the borrowers. The aims from this process were to ensure that the borrowers filled all of fixed requirements by lenders, secondary of mortgage market or federal government. Talking about how long does mortgage underwriting takewill depend on your types of home loans that you choose for.
So, once again you curious about how long does mortgage underwriting take. This is actually vary from one application for the next because every borrower also different as mentioned before. But generally, the mortgage underwriting was also able to take anywhere of few days to some weeks as well. In many cases, the underwriter would issue the conditional approva;. This is that he or she want the loans to close, but should resolve one or more the main issue. For example, the underwriter may need the explanation letter about your recent bank deposit. After this condition was clear, the borrower was able to step forward. Some borrowers do not get any certain conditions. in that case, the process of mortgage underwriting will not take a long time. The other borrowers get one or more conditions that they should resolve, before they were clear to close, it will take longer time based on these conditions. So, your work also impacting on how long it will take, this is better to fulfilled all of the requirements.