Underwriting, the procedure through which mortgage lenders evaluate your assets, credit scores, and tax returns before approving a house loan, may take as little as a couple of days. A mortgage lender or lender, on the other hand, often takes more than a week to complete the procedure.
Underwriting occurs after the payment plan is paid before the home is closed. That implies that the timeliness of this house loan procedure is critical, especially if you want to move in by a specified date. But make no mistake: the underwriting procedure cannot be avoided. Before a mortgage lender guarantees you the cash for a purchase, all loans and loan applications must undergo an underwriting procedure.
5 Tips to Expedite Mortgage Underwriting
Even if you communicate with your mortgage agent or bank lender daily, the underwriting process can be lengthy, complex, and sometimes unpleasant. Here are five techniques to expedite your mortgage underwriting services approval:
Complete transparency
The mortgage screening process is tough, and lenders may now unearth information that you may have believed was securely buried at the bottom of the sea in various ways. Confess, keep no secrets; early disclosure will allow you and your lender to determine if prior transgressions are deal killers or need additional work to overcome.
If you suspect you have credit skeletons in your closet, come clean as soon as possible, plead guilty, and leave yourself at the mercy of the QM court. Whatever it is, it will not go on its own and must be handled.
Provide Accurate information
Accurate data on a borrower’s file is critical for expediting the underwriting process. For instance, you must include divorce or separation papers in the borrower’s file if they are divorcing. If the mortgage borrower utilizes real estate-owned (REO) income, you must do an income analysis and present all required tax records and paperwork. And, if the client has a history of foreclosure or bankruptcy, you must supply proper papers and double-check the dates before submitting the loan file.
When it comes to loan paperwork, loan officers who deal with self-employed borrowers (SEB) have additional hurdles. Accurate information is always vital in the loan process, yet, establishing qualifying income for self-employed borrowers may be difficult. So try to be genuine with your lender.
Respond to information requests as soon as possible
Once your file has been submitted to underwriting, the underwriter may request more information. Please send those things to them as soon as possible – usually within 24 hours. The more time it takes to react to such inquiries, the longer the process takes. Underwriters are only given a specific number of days with a file; therefore, the sooner they get the needed papers, the faster they can review the file and finally approve it for closure. Keeping this point in mind is vital for underwriting support for credit unions.
Maintain compliance with regulations
When providing information, keep document expiry dates in mind, so lenders don’t have to make further demands of borrowers before closing. Many investors have had their expiry dates reduced under interim COVID-19 guideline options, so remain up to speed on current needs and review papers as soon as they arrive.
Dates on pay stubs, financial records, credit reports, and even year-to-date accounting information are all subject to particular criteria. Acquiring these fine papers speeds up the whole procedure.
Regarding document demands, go “all in”
Mortgages are obtained by recording the facts utilized to authorize your loan. Find out what your lender requires and deliver every page of whatever they want for, then when they ask for more, stop what you’re doing and get it to them. This is the most common cause of loan approval delays.
If your lender doesn’t need it, they won’t ask for it. Recognize early on that the mortgage approval process is document-centric and put everything in. Spending a few hours putting together your comprehensive, nothing-is-missing-that-you-are-aware-of document package can save you valuable days you would otherwise wish you had when the closing date is in peril.
Discover who your processor is
Once you have officially applied for your loan, a processor will oversee the information verification, document gathering, property assessment, and all other areas of your loan approval experience. Your processor is your finest source of status information and the primary point of contact among you, the underwriter, the appraisal, the closer, and even the loan officer who helped you get started in the first place. When you find out who this person is, contact them, introduce yourself, and give them whatever aid they need. The gratitude and results will be astounding.
Conclusion
The Underwriter is very important in mortgage processing. We know that underwriting takes significant time and money and generally involves numerous iterations. If a lender can make changes during the pre-underwriting phase, it may directly benefit the efficiency of the underwriters.
Pre-underwriting tasks include document verification, stacking and indexing loan documents received, compiling, and mailing first mortgage disclosures to the borrower, and so on. People may speed up the underwriting process by taking these measures. Begin with tiny modifications and adjust, as necessary.
