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Process

Underwriting

The process a lender uses to evaluate whether to approve your mortgage application. An underwriter reviews your credit history, income, employment, assets, debts, and the property's appraisal to assess the risk of lending to you. The underwriter may request additional documentation, such as bank statements or explanation letters. Underwriting typically takes one to three weeks and is the final hurdle before you get the green light to close.

Why It Matters

Underwriting is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.

Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in underwriting. Delays and misunderstandings at any step can push back your closing date or cost you money.

Related Terms

Credit ScoreDebt-to-Income Ratio (DTI)AppraisalPre-ApprovalLoan Officer

Tools That Use This Concept

MMortgage Payment CalculatorMAffordability CalculatorMClosing Costs Guide
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