What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan.
An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase), title insurance, and appraisal to determine whether the documents will meet the criteria to approve the loan.
After the package is reviewed, one of three decisions will be issued: approval, suspension, or denial. If the underwriter issues an approval, it is typically a conditional approval. This means the approval is conditioned on the underwriter receiving specific documents or information as provided in the approval. Once the conditions are met, the underwriter will issue a final approval, and the loan documents can be drawn and sent to title for closing.
If the underwriter is unclear as to whether the loan package will meet the approval criteria, the underwriter may suspend the loan. This could mean that additional documents are necessary to approve the loan, or the loan may need to be restructured for approval. If the loan package does not meet the criteria, the underwriter may deny the loan.
When we initially meet with you, we review the loan package with an eye towards approval and will discuss what steps need to be taken to approve the loan. If you received a loan suspension or a denial from another lender, contact us and we will review the underwriter’s decision with you. We are mortgage brokers and shop many wholesale lenders to see if we can turn your loan into an approval.
Contact us and we will be happy to go over this process with you!
Counsel Mortgage Group®, LLC
Licensed in Arizona, California, Hawaii and Illinois
www.counselmortgage.com
480-502-1000
NMLS #178927
AZ MB #0909580
CA DBO #60DBO43873
HI-178927
IL MB.6761723
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