The Mortgage Process: Part 4, Processing and Underwriting
Pre-approval? Check. Offer on the perfect house accepted? Check. Mortgage application process completed? Check. Ok, so what is next? Well, this step is really for us rather than for you. Up next in the mortgage process is Processing and Underwriting. Read on to learn more about these next steps.
What happens in Processing?
A Mortgage Processor is a specially trained professional who takes over your file from your Mortgage Consultant and ensures that all the financial information you provided is in order and ready for the Underwriter. During this process, the Mortgage Processor will review all the answers on your application along with the corresponding documentation and attempt to clarify any discrepancies and request any additional information from you that may be needed. The goal of this process is to have everything in the file and in order so the Underwriter is able to do a thorough review and make a decision on your file quickly.
Another key part of processing is the home appraisal. The appraisal of the home you are purchasing evaluates the home’s current market value based on square footage, number of bedrooms, bathrooms, lot size, location, and how it compares to other homes in the vicinity (often referred to as comps). An appraisal is essential because it tells the lender what your new home is worth so they can ensure the loan amount and purchase price are appropriate.
Now that your file is in order and the appraisal has been completed, your file is ready for underwriting. The first thing the Underwriter will do is review all of the gathered documentation from the application and processing milestones. They will look at factors such as your credit score and report, your debt-to-income ratio (DTI), the loan-to-value ratio (LTV) and other determining factors from your application. Underwriting is the evaluation of all the pieces that have been provided put together to form a complete picture of your financial qualifications to obtain the mortgage on your home. If there are any pieces missing, you may be asked to provide additional documentation to underwriting.
Once your file has been through underwriting you will receive a decision. If your loan has been conditionally approved don’t let that scare you! This typically just means there are a few pieces of information needed for the underwriter to fully approve your file. If you are asked to provide additional information, please do so in a timely manner to avoid your file being suspended. Once all the conditions have been satisfied, your file will then be considered clear to close and you are one step closer to unlocking the door to your new home!
What Makes Processing and Underwriting Different at Cambria Mortgage?
Cambria Mortgage is proud to have all of our processing and underwriting completed in house, in our local offices, rather than sending your personal and private information to an outside source. Our team of Mortgage Processors and Underwriters is highly experienced and will make sure your file is reviewed in a thorough and timely manner. When it comes to your personal finances we take it very seriously and want to provide you with the best service possible.
Cambria Mortgage is local, trusted and ready to help you accomplish your goals of homeownership. Call us today at 952-942-0110 or visit our website CambriaMortgage.com to start your journey today!