Step #7 Submitting to Underwriting
Congratulations your loan has been submitted to our underwriter
What to expect:
This process is normally 3-4 days and sometimes sooner if we need to rush the file. While your file is waiting to be reviewed by the underwriter there is nothing at this time needed from the borrower. Once the file come out of underwriting the underwriter might have some additional questions in regards to your loan. We will be contacting you immediately once the file has been reviewed with any requests from the underwriter
What is an underwriter:
The underwriter is the individual that will be reviewing and approving your loan. They are trained professionals that make sure your loan fits with in the requirements of the government agencies (Fannie Mae, Freddie Mac, & Ginnie Mae) The rules are set by the agencies not by the underwriters. However some of the rules are up for interpretation. Sometimes the underwriter might not understand parts of the loan and will request more documentation before approving the loan.
Outcomes from the underwriter:
There are 2 outcomes the loan will have when the review is complete
- Approved with Conditions: This means that the loan has been approved and there was enough information for the underwriter to make an approval decision. This means that they have reviewed the loan and it fits with in the rules of the government agencies. The underwriter will also add any conditions (if any) needed before loan docs can be signed
- Suspended: A suspended status from the underwriter means that the underwriter did not have enough information to know if the loan fits with in the agency guidelines. The underwriter will request more documentation from the borrower in order to give make a decision on the loan. The underwriter will also put in the suspense conditions what is required for an approval status.
Once the files comes out of underwriting we will be contacting you right away with the next step in the buying process.
- Delay in Underwriting
- Occasionally underwriting will get super busy and sometimes backed up with loan files to approve. We will ensure that your loan will not spend more than 3 days in underwriting prior to your loan being reviewed. Purchases come 1st before refinances. Anytime your loan is in underwriting for longer than 3 days would be considered a delay on your loan.