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.
The big question....
What can I do for you that is different than any other Realtor or Real Estate Broker? The answer is Personal Service.
I will work for you, at your comfort level, not pressuring you to look at, or buy homes that you are not interested in. Buyers, I will not entice you to overspend and be house poor. Sellers, you always choose your selling price. I will inform you of the current market and the trends that I see. I never make choices for you. I inform. All decisions are yours to make. I am only an extension of you, doing as you instruct. I will call you, text you or email you on a time schedule that you would prefer. Frequently if you desire; or not, depending on your requests. I will be working for you; and with you, doing my very best at all times.
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