What exactly does underwriting do when you apply for a mortgage loan?

Do they call your job?

What exactly does underwriting do when you apply for a mortgage loan?

When you first apply for a mortgage ... your Mortgage Agent (or your Loan Officer) will fill out a Loan Application. Some of the documentation collected at this time will be pay-stubs, bank-statements, and W-2 forms.

After reviewing your file ... the Loan Officer will discuss with

you which %26quot;Loan Product%26quot; .... or which %26quot;Type of Loan%26quot; is

best for you. (For example .... an FHA or VA loan .... OR maybe a Conventional Loan that requires 5-20% down) This

will ALL be dependent upon your income/debt ratio, your

credit score, and your credit history.

You should also receive a written %26quot;Good Faith Estimate%26quot; of

ALL of your closing expenses.

The Underwriting Process is the last phase .... before FINAL

approval.

During this process .... Your entire file is evaluated by an

Underwriter (sometimes it is a %26quot;group%26quot; of people ....Or,

now they are EVEN doing %26quot;computer underwriting.%26quot; Everything in your file will be VERIFIED ..... including your

employment. Most underwriters require an %26quot;Employment Verification%26quot; Letter. This document is either Mailed or Faxed

to your Supervisor or to the Human Resource Department of

your job. (Depending on the Lender's Policies .... it is ALSO

%26quot;possible%26quot; that your job WILL BE called .... I would recommend letting your supervisor know that you are shopping for a mortgage ....)

Depending on the results of this FINAL verification process ...

Additional documents %26quot;may%26quot; be required. For example,

be prepared to provide your MOST recent pay-stub. And

%26quot;sometimes%26quot; the underwriter(s) will request additional years

of W-2 forms .....

Once the underwriters are satisfied that EVERYTHING in

your file has be verified .... and that your income/debt ratio

meet Lender guidelines ..... All Lender requirements must be documented; including (of course) an appriasal and proof of Homeowner's Insurance .... Then your file will be given a %26quot;Clear-to-Close%26quot; .... meaning that your file is %26quot;officially%26quot; out of underwriting .... and that a Closing Date can be set.

Hope that this was helpful ..... Best Wishes if you are currently

shopping for a new home!

What exactly does underwriting do when you apply for a mortgage loan?

they check all of the information you give on your application, including your work history and salary, and make sure you submit all of the backup paperwork necessary to be able to approve your mortgage loan. if the underwriter doesn't like what he or she sees, the won't recommend that you get your loan.

What exactly does underwriting do when you apply for a mortgage loan?

They'll run a credit report, verify your employment, and ask for either tax records from previous year (to verify income) or ask for 2 pay stubs. If you have something bad on your credit report, they will allow you to write a letter of explanation.

They will also require an appraisal of the property. Depending on the circumstances, if it is a first mortgage, they'll probably restrict your loan amount to no more than 80% of the appraised value. You'll also have closing fees.

Based on your credit report and other information, they may refuse to lend or offer you a higher interest rate.

Be sure to check out everything available to you...funding from local organizations, first time home buyer, etc. Also, watch out for ballooning payment or interest mortgages. Try to get a 15 year fixed if you can afford the payments.

Now is a chancey time to buy because of the problems with subprime lending...a lot of foreclosures so finance companies and mortgage companies are a little wary.

If your credit is not up to par..and you're wanting to buy a home, try a contract deal with the home owner. Sometimes, esp. elderly people who are moving into their last residence but staying in town won't mind a steady monthly income. Good luck.

What exactly does underwriting do when you apply for a mortgage loan?

Depending on the bank and the contract, yes, they will call your job. They get a signed consent form from you to contaact whomever they need to, in order to verify the information you have put on your loan application.

This includes your rental and any other creditors you have.

What exactly does underwriting do when you apply for a mortgage loan?

It is the underwriter's job to make certain everything on that loan application is as it has been represented. Not only that, but they will investigate any omissions that they find out about.

The underwriter may or may not call your job, but someone will. Probably twice - once during initial investigation, again right before actually funding the loan to make certain you haven't been laid off or something. No big deal; employers are required to cooperate, and they shouldn't mind. It's actually reportable to the department of Labor if they do not cooperate by telling the truth as they know it.

They're going to verify lots of other stuff, also. If you told the truth on your 1003 (loan application), it should all come back fine. If you've been working there ten years and you were a month off on your hire date, I've never seen it be a problem, and I've done somewhere around 1000 loans.