The Underwriter is the person working for the bank or lender that analyzes the risk and determines whether or not the lender can make the mortgage loan. They are evaluating the borrowers willingness and ability to repay the loan as well as determining whether the property meets the lender and government requirements for the loan. Some of the main components that the Underwriter is looking for is the borrowers credit scores, credit history, work history, debt to income ratios, and ability to make a down payment. This is why there is so much paperwork involved when obtaining a mortgage. Underwriters request your credit report, two years of tax returns, W2’s, and two year work history verification. They also review your most recent 30 days of paystubs, and two months of bank statements. On top of reviewing the application to see if the loan meets the lenders requirements they also have to determine if the loan meets any government requirements such as with an FHA or VA loan. Lastly, the Underwriters also review the file to see if there are any red flags for potential fraud.
At the end of the day the best news you can receive after an Underwriter reviews your file is that you received a final approval or clear to close. This means that you have received a final approval on your loan and you are ready to close.
Please contact me if you need help getting through the Underwriting process for your new mortgage loan.
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