You’re all pre-approved, you have found the home of your dreams, provided mountains of documentation, signed your contract and all of your disclosures and you’re all ready to close, right? But then your loan officer tells you that you’re “in line for underwriting”…wait a minute…what does that mean?
Up to this point, you have been working with your real estate professional, your loan officer and probably your loan officer’s processor and/or assistant to compile a complete loan file to be reviewed and ultimately approved or denied by “the” underwriter. This shouldn’t be as scary as it sounds but understanding the process and working with qualified professionals to get you to this point, will certainly put your mind at ease. In my business, if there are potential challenges or items of concern that I see, I will send a request to my underwriting team to review this point PRIOR to generating a client pre-approval. The most important part to approving a challenging loan is to deal with the red flags or issues UP FRONT. Clear and concise communication with clients and underwriting can assist in solving these challenges before they become problems.
The underwriter is charged with assessing the quality of your loan and balancing the risk profile to ensure that they set you up for success as a home owner.
Most of the time, my clients receive automated approval ratings and the underwriter’s main task is to ensure that the information that was provided to obtain the automated approval is accurate, complete and truthful. That being said, there are times when something is uncovered in the underwriting process that may have nothing to do with you as the borrower but with the appraisal or title report or other critical document in the loan file. In these instances, the underwriter is working on your behalf to protect you from potential issues that you may not have uncovered without their expertise.
It is this due diligence that allows the underwriter, as the final gatekeeper, to ensure that all parties’ interests are protected. Not only the lender’s but also you, as the consumer. Keeping that in mind and knowing that you have been pre-approved by an expert loan officer and already double checked by the automated underwriting system will set your mind at ease as you enter this phase of loan processing.
For assistance with pre-qualification and up front assurance of underwriting approval, feel free to give me a call. You can reach me via email at Kahren.firstname.lastname@example.org or by cell at: 503-453-6849. Thank you!