How Mortgage Underwriting Works

Mortgage underwriters evaluate mortgage loan applications to determine eligibility.

When you apply for a home mortgage loan, part of the process is the underwriting of the loan. Mortgage underwriters are mortgage company employees who have the authority to approve or reject a loan application.

Evaluation

Mortgage underwriters review your financial situation and verify information such as employment history, income and credit history once the loan application is completed by the loan officer. Underwriters may ask you to supply additional information if necessary.

Time Frame

Depending on your situation, the underwriting process can range from a few days or a few weeks to a month or more. Generally, the clearer your financial picture and the more information you can provide upfront, the less time the process will take.

Considerations

Situations can arise during the underwriting process that can slow down the underwriting process or even prevent you from obtaining a loan. For example, if you lose your job or make a major purchase using a credit card, this could affect the decision to extend the loan. Also, since employment stability is an important rating criteria, it may be better to wait until the loan is approved before changing jobs.

References

• Mortgage Underwriters: Mortgage Loan Process
• Financial Web: Mortgage Loan Underwriting