Here at Sun American, our team genuinely cares and does everything possible to help get you qualified for your mortgage loan. Many steps are involved in the mortgage loan process. Today we are going to outline and dive deeper into what happens in the underwriting process. Underwriting happens behind the scenes of the mortgage loan process, but is a very important step towards getting you approved for a home loan.
What is an Underwriter?
Typically underwriters have years of experience in Business, Finance, Economics, Math, or Statistics. Certifications and specialized training are required as well. Attention to detail and great communication skills are important traits that underwriters must have to successfully complete their job each day. The underwriter checks thoroughly through all of your documents for completeness and accuracy.
What are they looking for?
What does an underwriter look for? EVERYTHING.
Their goal is to make sure everything meets requirements and is totally compliant in every way. If the list of questions and documents seem endless, we promise they are all necessary and incredibly important for the Underwriter to do their job right. Their top priority is to follow the required guidelines, meanwhile making sure you get approved for a home loan.
Here are the top 4 areas the Underwriter focuses on
Income: Borrowers must have a sufficient income to qualify for the size of the loan they’re aiming for. Income is reviewed for the length of employment, promotions, type of work and anything else related. To verify this, underwriters ask for bank statements, W2’s and pay stubs that show year to date earnings and other employee documents. Alimony & Child Support also falls under this category.
Credit: Another part of the Underwriting Process involves taking a look at your ability to repay a loan. To check this, an underwriter pulls up things like your DTI (debt to income ratio), current credit score & a credit report history. Credit reputation has to do with any past foreclosures, bankruptcies, judgments, and ultimately measures your ability to pay off your debts.
Property: A property’s appraised value is also analyzed by the underwriter in this stage of the mortgage loan process. An underwriter needs to make sure that the price of the home you’re buying is comparable to values of similar properties. An appraiser will verify this. The underwriter uses the appraised value to determine if the funds garnered from the sale of the property would be enough to cover the amount borrowed.
Assets: Assets are one of the most essential conditions of underwriting. The most common assets include checking and savings accounts, bonds, stocks, and retirement accounts. This shows the borrowers ability to save money and instills more confidence in providing you a loan. It also allows the Underwriter to verify any sources of down payment that may be coming from these accounts. Borrowers most often need to provide 2-3 months of bank statements, their most current investments statements, and all the other necessary documentation to help verify this. In the event that you would be receiving a gift from a family member for your down payment on a new home, the underwriter would be need to verify this and source where that money came from in your account.
HERE’S THE GOOD NEWS!
We’ve created an extremely organized and top notch system that ensures underwriting is completed in about 24-48 hours. We avoid the “never ending” list of questions and documents by collecting everything we need from the very beginning of this mortgage loan process. By the time your loan hits the underwriting process, it’s been filtered through a few other team members so that the underwriter already has everything he or she needs to complete this final step. The best part of our job is telling you those magic words- that you are cleared to close on a home!
Let us help you get started today! Our team is dedicated to helping you qualify for your dream home. Use our Online Application here and see a quick estimate of how much you can qualify for!
To get started in the mortgage loan process, contact one of our knowledgable Loan Officers today.