The underwriting part of the mortgage loan process can take anywhere from 1 day to a couple of weeks. This “limbo” period is where you may start to get anxious about what is happening. Try to relax because likely you are simple queued in line behind those ahead of you. An underwriter generally takes no longer than a few hours to examine your application materials before he/she grants an approval for a conditional loan. Let’s think positive and not entertain the idea that your loan could be denied or suspended.
It’s possible that once your conditional loan approval is rendered you will have to provide some additional documents to satisfy the underwriter. He/she might ask for updated information on something related to your employment or other necessary details that need to be verified. Again, this is normal to the mortgage loan process and may add some extra time to the review period. This can cause many of you to stress even more but remember it’s not worth the energy. Just try to relax.
Once you provide the underwriter with all the information that satisfies the loan requirements, you will receive a final authentic loan approval. You’re getting closer to your end goal at this point as your loan documentation can now be handed off to the escrow or title company for finalization on their end.
Next, the title or escrow company will send the verified loan package back to you for your signature. You simply send the signed package back to the bank or lender for one final review. Again, at this point if there is something missing the bank or lender will notify the escrow company, title company or your loan officer to validate all necessary materials are submitted for funding of the loan.
When the bank or lender validates all your final documents, they will fund your mortgage loan. This is where the actual money you have been seeking is disbursed. Now you can celebrate because you have your loan!
If you have learned anything from this borrower’s guide to the mortgage loan process it is that the whole transaction takes time. There are many parties to the procedure and each needs to be satisfied that you meet the specific criteria before they are going to lend you hundreds of thousands of dollars.
Looking back the parties include:
1) a lender,
2) you, the borrower,
3) a loan officer,
4) an insurance company and
5) an escrow or mortgage company.
Knowing this information should make you more calm and confident as you progress through the process of getting a mortgage loan.