Once your mortgage loan has made it to the underwriting department you should be very close to closing the loan. The mortgage underwriter is the individual who reviews all of the borrowers financial documentation to make sure they qualify for the loan given.
To qualify for this position you must have complete knowledge of the mortgage process and how applications are processed. Generally, the lender will require they have years of experience as a junior processor or as a loan officer’s assistant to qualify for this position. This person has to be well trained because this position will require precision when it comes to numbers and making sure the data is accurate.
The reason this position requires years of experience is because they play a major role in deciding whether or not the loan will be approved for closing. Therefore, underwriters will have a list of things that need to be completed before their job is done.
Many times people make it to this stage in the process and wonder how long it will take? Also due to our current housing crisis many homeowners are trying to pursue a loan modification to change the terms of their current loan. Even though the homeowner is not getting a new loan they must also go through underwriting to ensure all financial information is correct.
Below are the duties the underwriter must fulfill to complete the transaction:
-Make sure that the loan applicants have provided the bank with all needed information to complete the loan including bank statements, W-2s, tax returns, income verification, etc.
-A careful review of all of the funds, closing costs, and down payment will be done to make sure all information has been correctly inputted.
-An intense review of the borrowers current and past credit rating will be evaluated to determine how they have managed other obligations in the past.
So because of the list of duties the underwriter must perform they are required to be well-trained in the mortgage field. With that said, it will typically take the underwriter about 7-30 plus days depending on the conditions that must be met to close the loan from appraisals to employment verification etc. The more complex of a loan the longer it will take in processing.